Patrick Henry serves as the chief financial officer of the Arkansas Baptist State Convention.
Church insurance is a crucial component of protecting your employees, the congregation, and church assets. It provides financial coverage against various risks, ensuring the continuity of your ministry and the well-being of your employees and members. When considering church insurance, there are several key policies to keep in mind. Medical, property and casualty, and liability are just a few to consider.
Medical insurance is a benefit that some churches provide to their employees. Sometimes this is done through a group plan, or it could be done through a Health Reimbursement Arrangement (HRA). There are multiple options when considering healthcare depending on your church size and budget.
Property and Casualty insurance covers physical damage to your church building, its contents, and any adjacent structures. It protects against losses caused by fire, theft, vandalism, natural disasters, and other perils. The term property and casualty insurance typically contains two primary coverage types: liability coverage and property protection coverage. The liability coverage that comes with casualty insurance covers your liability for accidents and injuries that may occur on your property, or for damage to another person’s property.
Liability insurance protects your church from lawsuits arising from accidents, injuries, or property damage caused by your members, staff, or volunteers. It covers legal fees, settlements, and judgments. Consider the types of activities your church conducts, such as youth programs, recreational events, or food services, as these may influence the level of liability coverage needed. There are several different types of liability coverage that you should consider including: Directors and Officers, Sexual Misconduct, and Professional Liability.
When selecting church insurance, it is important to work with a reputable insurance agent who understands the specifics of everything that your church does. They can help you assess your needs, compare different policies, and ensure that you have adequate coverage for your specific circumstances. By understanding the requirements for church insurance, you can protect your congregation and its assets from risks.
Why is the insurance market so tough right now and what should we do? GuideStone has recently shared some information to help us answer these questions.
Why is the insurance market so tough right now? Inflation, catastrophic losses, and increased demand are just a few reasons why churches are finding it difficult to find affordable coverage. Some churches that have proper coverage have been dropped and some are seeing renewal rates come back much higher than anticipated.
What should we do? One of the best things you can do is be proactive. Reach out to your insurance company and initiate a conversation. Ask them to get you renewal information as fast as they can. If the carrier is not going to renew your coverage, you will be notified. The process to get new quotes/rates could be time consuming. What was once a fast process is no longer. You should budget accordingly. As you prepare your budget, create space for an increase in your premiums. If you do not have reserves for insurance premiums/deductibles, now is a good time to consider doing so. Be wise when considering a claim. Sometimes it may be in a church’s best interest to forgo filing a claim. Claims might result in being dropped or higher premiums.
The insurance market is cyclical. Most likely things will even out and return to normal. Church insurance is crucial. Take the time necessary to discover exactly what your church needs and talk with a professional who can give you guidance.
I would recommend contacting GuideStone to see if they can help you with your insurance needs. GuideStone’s insurance products and services are designed with your ministry’s well-being in mind. From medical plans to property and liability protection, their priority is always providing you with ministry focused quality coverage.