4 July, 2014
Get the best Insurance deal for your Church
Whilst reviewing your insurance arrangements may seem onerous and time consuming, it is an opportunity to ensure your church is adequately protected, and that you are getting the best value for money. There are a few key steps that can help your church purchase the most appropriate and cost effective insurance policy:
- Use a broker
An insurance broker should use their extensive market knowledge, contacts and access to a wide range of insurers to negotiate the best deal on your behalf. They also have more bargaining power than an independent church. This is particularly useful in the event of a claim. The broker gives neutral advice and support, and can use their experience to present your case to the insurers in the best possible way.
- Use a specialist broker
It is necessary for your broker to understand your church and the risks you face to ensure you receive relevant and tailored advice. They are able to negotiate the most competitive prices as they understand the levels of risk involved. Expect your broker to ask lots of questions about your church; the more knowledge the broker has, the better they can tailor the policy to meet your needs and the more competitive the prices should be. Your insurance policy needs to cover your exact requirements based on your unique situation. Without this level of knowledge, churches can be left vulnerable, with inadequate insurance policies that don’t cover their needs.
- Evaluate where to insure and where to self-insure
If done correctly self-insuring can be cost effective if you understand the financial impact of each risk to your church, and weigh that up against the premium the insurance company is charging for that particular risk. For example, a church may decide not to include Fidelity Guarantee insurance (insurance against employees/volunteers misappropriating money) as they have excellent financial controls in place and few people handling money. They could also decide that their insurance policy is there to cover only large losses and increase the excesses. With the help of a broker, you can carefully evaluate these options, and you could see premium reductions. Whether insuring or self-insuring, you should have a high level of risk management to reduce the likelihood of a loss.
- Risk Management
By improving your internal controls, assessments and checks, you are reducing risk and the likelihood of a loss. Good risk management should result in lower insurance premiums and the possibility of greater discounts, so don’t be afraid to raise this with your broker. If no losses have occurred, your church may build up a no claims bonus and your ‘risk’ will be more marketable when seeking alternative quotes. However, remember that high risk activities will usually incur an increased premium charge.
- Do not make it all about the price
Price is always going to be important, especially in the current economic climate. However, cutting corners or not fully disclosing all your activities to a broker/insurer to reduce price could have serious implications on the cover. It can result in an insurance policy being provided that has little or even no cover. It is important that the money you are spending works for you, that your needs are being met fully, and that you are confident your church is sufficiently covered.
Consider whether your church insurance covers the following: Does your insurance policy include abuse cover? Does your policy include a pastoral care extension? Not only have you got sufficient cover, but also do you have the right cover? Insurance doesn’t need to be confusing, onerous or time consuming if you seek professional advice and use a specialist broker that understands your church. If you need more information, please call us on 020 8651 7420 or complete the form below: [gravityform id=”23″ name=”Church Insurance Quote Request” title=”false” description=”false”]