Risk Management For Churches

Budget for cost of insurance changes.
The insurance market is cyclical; if prices have been low or dropping over the past year, they eventually will go back up. You must account for this change within your budget and be prepared for a premium increase next year.

Limit your exposure to losses!
You need to make your company attractive to insurers. This is called the loss ratio; it is the premium paid divided by the cost of claims incurred. This will lead to your business being offered lower premiums.

Become a valuable account to your insurance carrier.
Insurance companies have limited ability to underwrite business insurance (due to the risk exposure!). Hence they will choose what they feel to be the most profitable risks to insure. It is important to make sure you are one of the good risks that they want as part of their book of business.

Evaluate your exposure to risk by choosing the correct deductibles.
The general principle is: the higher the deductible, the lower the premium. By analyzing past losses in conjunction with insurance premium quotes for different deductible options, it becomes clear which deductible is best.

Make sure your property values and your policy limits are accurate.
Accurate values and limits mean you are adequately covered, and ensure that you aren’t paying an excessive amount.

CMIrisk is an independent insurance broker that specializes in working with churches, ministries and non-profits.

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