Ministry Property and Liability: What you Need to Know in Today’s Market
Ministry Property and Liability: What you Need to Know in Today’s Market
By Ben Laro | August 2024
If your ministry’s insurance program has been experiencing premium increases, cancellations, or other challenging situations, you are not alone. There are a variety of factors that are driving these changes, but here are some things you can do to help protect your ministry and its long-term insurability (the conditions under which an insurance company will issue/renew your insurance).
Take care of your buildings. Property claims are the biggest risk to insurability. They often occur when there are changes in leadership and nobody is checking on the building. They occur when the church defers maintenance on the building or delays capital projects such as roof replacements or repairs, etc.
Don’t submit low dollar claims. These should be paid through the ministry’s emergency fund. In other words, use the insurance policy and the deductible for a rainy day! Don’t nickel and dime the insurance company with small claims. The frequency of claims submissions can be as detrimental as a severe $100k+ claim.
Pay your bills on time. Customers with late payments often have higher claims. Policies that go into advance cancel or cancel for nonpayment are often red flagged for non-renewal. Most companies have auto withdrawal payment options. Utilizing this service can be a great way to reduce payment issues. Ask your agent about this option.
Good housekeeping. Make sure your ministry has basic safety and risk-management controls in place. Here’s a few things to consider: ensure your HVAC system is on a service schedule. Make sure any roof repairs are immediately fixed. Keep gutters and downspouts free of debris. Winterize the building and set the heat to a minimum temperature to keep pipes from freezing. Install water leak sensors in key areas and make sure church leaders understand where the main water shut off is located. Illuminate exits and keep walkways and parking lots clear and clean. Make sure flammables are not stored in the main building and if the ministry is in a high crime or vandalism area, move the garbage and recycling dumpsters away to reduce fire risk.
Consider separating out high-risk ministry activities. Putting these unique ministry activities onto separate insurance policies helps ensure that any claims don’t impact the church’s primary insurance coverage.
Speak to your current agent. Schedule a visit to discuss concerns, coverages, and areas where you may need help with the church’s risk-management policies.
About James Reed & Associates
Ben Laro and the team at James Reed & Associates Insurance help represent nearly 1,600 ministries across the Pacific NW. With access to more than a dozen insurance companies that niche in ministry-focused insurance programs, they can often develop solutions where others can’t. Their team can be reached at https://jamesreedagency.com/cma/.