Strategies for Buying Church Insurance (and Getting Better Rates!)
When it comes to buying insurance for your church, you want to protect your organization and congregation the best way possible while keeping an eye on your budget.
But typically, it’s not a quick or easy process.
That’s because INSURANCE UNDERWRITERS ASK A LOT OF QUESTIONS.
Some insurance companies offer “quick-quote” business owner policies (BOP) for small churches and ask as few as 25 questions in their application. But most churches should plan on answering well more than 100 about your buildings, inventory, congregation, operations, activities, finances, leadership structure, youth safety, campus security, cyber security, sanitizing, vehicle maintenance, and more!
It may take several weeks to gather the answers and provide them to your agent. And once your application is received by the underwriter, given their volume and the time of year, it can take up to 30 days to process and develop a quote.
That’s why we encourage you to prepare to shop for insurance for your church no less than 90 days before your policies expire. In addition, following these recommendations will help you get the best rates possible.
Gather Your Facilities Renovation, Repair, and Replacement Records
One of the first things an underwriter looks at when evaluating a church application is the age and quality of the buildings. Unless your buildings were constructed within the last 15 to 20 years, be prepared to provide maintenance schedules and replacement dates for:
Roof(s)
Electrical systems
Plumbing
Heating and cooling.
While your facility may be safe and hospitable, the phrase “Repaired and updated as needed” in lieu of true repair, replacement, or renovation data is unacceptable.
Underwriters need verifiable dates, or they cannot justify giving you a preferred rate. Poor maintenance records are a surefire way to lose discounts or even have your application declined.
Document (and Implement) Your Safety Programs
Safety programs are critical – not only to ensure the well-being of your congregation and organization but also for the stewardship of church resources.
Do you have a written safety program that includes screening procedures for ALL of your staff and volunteers, and guidelines for sexual misconduct prevention?
Have you completed a campus security assessment, developed a documented Safety/Security Plan, and trained ALL staff and volunteers accordingly?
As COVID-19 restrictions lift, has your organization implemented a “Safe Return to Worship” Program?
Have you conducted a Cyber-Risk assessment?
Are your by-laws, doctrinal statements, and facility usage guidelines up-to-date, and follow the recommendations of legal counsel?
If the answer is “No” to any of the items above, not only is your church at greater risk than it should be, you’ll pay more for your insurance than if the answers are “yes.”
Additional Information to Gather and Provide
Organization Tax ID or FEIN
Insurance Policy Declarations Pages
Five years of Premium History for all policies
Two Most Recent Years of Financial Statements
Youth Safety Guidelines – i.e. “Safe Sanctuaries”
Employee Handbook – including applications and specific content
Vehicle ID Cards, Drivers Lists, and Maintenance Logs
Payroll and Housing Allowance for both W2 and 1099 Staff
A list of all parties that must be named as certificate holders or additional insureds on your policies, such as lenders and lessors
Five Years of Claims History a.k.a. “Loss Runs”
Work with an Independent Church Insurance Specialist
Insurance is a necessity for every church. Unfortunately, many policies written by inexperienced or general agents contain gaps and insufficient coverage limits, leaving your organization exposed.
Choosing an experienced, independent agent that understands the unique needs of churches is vital to protecting the people you serve and your bottom line.
