I hate spending money. On the topic of insurance, my tendency would be to by the cheapest coverage I can get away with because I know insurance isn’t a charity. They are in the business to make money. Being too cheap on insurance is dumb. Guess what. Spending too much on insurance is also dumb.
Compare insurance to a shield. If I’m going out to battle against an enemy that is shooting arrows, I had better not have gone cheap and bought a shield the size of a dinner plate. I might get lucky for a while but eventually my luck will run out. Also, it wouldn’t work well to buy 100lb metal shield because it’ll make it really difficult to fight the battle AND protect yourself. When your church is under covered, eventually a disaster will hit that isn’t covered. It’s only a matter of time. When you’re church is over covered, money that should be going to ministry is instead going towards somebody else’s bonus check.
Insurance is there transfer the risk from the church to the insurance company for large and unexpected expenses that could destroy your church’s finances. What are risks that are in the realm of possibility that could wreck the church’s finances? A chip in the church van’s windshield probably won’t wreck you. The driver of the church van accidentally running over someone, that would wreck you. Keep that in mind as you discern the insurance needs of your church.
Useful Links
- Article from Hummel Group on Types of Insurance: https://www.hummelgrp.com/news-info/current-news/what-types-insurance-should-church-have
- GCFA’s Insurance Worksheet: https://www.gcfa.org/media/1354/gcfa_insurance_worksheet_final_083116.pdf
- Brotherhood Mutual Dakotas: https://www.americanchurchgroup-dakotas.com/who-we-are/agents/
- Church Mutual: https://www.churchmutual.com/
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