MONDAY, MARCH 24, 2014
The state of Kentucky is home to hundreds of different churches and thousands of worship buildings. Proving a place of peace and faith can be a large undertaking. It is important to protect the congregation and their meetinghouse with adequate church insurance.
 However, church insurance remains one of the most misunderstood policies and few understand how it really works. As one of the largest providers of church insurance in the state, we can clear up some common misconceptions regarding church insurance.
The Truth about Liability
People used to say, "No one is going to sue a church". This is no longer the case. Any public gathering place can become the center of a lawsuit for a myriad of reasons. If a patron is injured in the parking lot, on the stairs, or inside the building for any reason, they can sue the church as a whole. If someone is mistreated, feels discriminated against, or sexually harassed, they can sue the church.
Employees and volunteers alike have the power to sue the church for countless reasons. This is why liability insurance is so important. Legal fees can be devastating to a non-profit church, so protecting against even the possibility of a lawsuit is crucial.
Benefits v. Premiums
The purpose of insurance is to help your church survive a devastating event. From a tornado to a car accident, insurance helps to rebuild, replace, and continue to move forward. Even if you carry insurance for several years without needing it, the moment tragedy strikes, you will be glad you paid your premiums year after year. When insurance is necessary, you will always receive more benefits than you paid out in premiums.
If premiums become difficult to pay, consider increasing your deductible. A higher property deductible can reduce your premiums significantly. Also, avoid filing claims for any repairs costing less than $1,000 to repair. Often, these small repairs can be paid out of your operating expense budget, and can save money on future premiums. Filing frequent and small, claims may cause your policy price to increase over time.
Reviewing Your Coverage
No policy provides complete and total protection against anything and everything. It is important to understand what your policy covers, and more importantly, what it does not. Evaluate the risks in your area and consider supplemental policies where necessary.
For example, if you live in an area prone to earthquakes, it may be in your best interest to purchase a separate policy to cover earthquake damage. If floods are common in the area, consider a supplemental flood policy. The only way to know exactly what is covered and what is not is to read your policy or consult with your agent about your needs and concerns.
Rate Determination
Just as with individual homes or individual drivers, church insurance rates are based on the individual church. Several factors contribute to the premium rates for insuring a church. These include the size of the church, regular membership and attendance, types of activities provided by the church and sponsored through church programs, the frequency and risk of those activities as well as the process by which employees and volunteers are screened. It is always worthwhile to ask your agent for options or variables you can change which may decrease your rates.
By Matt Reynolds - Google+
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