Insurance is something that every church plant needs.  Getting set up with insurance can be difficult though, because insurance companies don’t usually understand what a church plant is.  Many will require that you have a building or at least are renting a building before they will insure you.  That can force the church to begin meeting and working within the community without insurance.  The likelihood of needing an insurance policy at this stage of the church may be small, but one claim could also bankrupt the new church.  Here are a few things you need to know and then one suggestion for streamlining the process.

1. If an insurance office has an agent who handles churches, it is probably only one person.  Churches are a specific niche and not every agent will be familiar with writing policies for them.
2. The agent will write the policy, but the underwriter rules the day.  The agent simply sells the policy and typically doesn’t work directly for the insurance company.  The underwriter works directly for the insurance company and can veto anything the agent says.  If an agent is telling you no, they can’t insure you until you have a building, ask them to run the question by their underwriter.  Some times the agent just doesn’t want to go to all the work for such a small policy and may blow you off because a new church isn’t worth their time.
3. There are several types of insurance that a new church needs.  I’ll cover those in future posts.  Like anything in sales, when you are uneducated, you can be taken advantage of.  Insurance agents work on commission.  The higher the policy premium the higher their commission.  Don’t let them sell you insurance you don’t need.
4. Don’t put off getting insurance.  Insurance protects you from  a whole host of things.  Even if you have no equipment yet, but you are working in the community under the name of the church, you are open to liability.  There are a lot of strange people in the world.  All it takes is for one of them to make a false accusation and you may find yourself paying for a lawyer out of pocket.  While these cases are rare, insurance protects the church and the funds that have been raised from such scenarios.
5. Communicate regularly with your insurance agent.  If you buy a new piece of equipment, call your agent and let them know.  If you move locations or are using your equipment at a venue that is different from your normal venue, call you agent and let them know.  If you are holding a special event, call your agent and make sure you are covered.  Many companies will have additional policies that need to be purchased for certain types of events.  Each event can bring a new level of risk, thus the need for additional coverage.  You don’t want to hold an event, find you have a need for insurance and then not be covered.

How to streamline the process:

I have found that working with Guide One has been the best experience for my church planters.  I work specifically with Bob Woodard, an agent at Illini Community Insurance.  Bob works with a terrific Guide One underwriter who understands the unique needs of church plants.  Bob insures several church plants and know the needs of a church planter in and out.  I’ll be picking his brain for this series of legal Wednesday posts.  You can reach his office at 217-253-3993.

*Disclaimer: I’m friends with Bob, go to church with him and work out of his office.  This isn’t because I’m recommending him, but we are friends and he has extra room in his office building.

Next week: Employment Practices Liability Insurance.