By Gary Benson

In case you hadn’t heard, the economy is in crisis. Churches and even private schools are certainly not immune to the ill effects. Many are looking for ways to trim their budgets while attempting to maintain the various ministries they have committed to.

Since insurance likely ranks as one of the largest expenditures, churches and schools are looking for ways to trim their budgets in that area. However, before you look for ways to cut back, you must not lose focus of the importance of protecting your ministry. Listed below are a few key points to keep in mind.

1. Reducing Insurance Costs – The Right Way

The principal reason for insurance is to provide protection for those things you cannot afford to replace. So eliminating or decreasing insurance limits for catastrophic coverages such as sexual abuse or an Umbrella policy should be avoided.

One thing you might consider as a way to reduce your insurance costs is by increasing your deductibles. Examine the funds available to pay for losses, then ask your agent for the cost savings for higher deductibles and see if it makes sense to assume more of the risk for a lower premium.

2. Building Valuations – It Doesn’t Pay To Be Underinsured

Insurance agents and companies offer a software program to assist in determining current replacement cost. Construction type, square footage and zip code are the main components for determining the replacement cost. There are also companies that offer professional personalized insurance appraisals. The cost for these services is not as high as you might think and they can be invaluable, especially on larger facilities.

During the last few years, the price of construction materials such as steel and concrete have increased dramatically, so don’t hesitate to ask your agent for an updated evaluation of your property values to be sure your values are current.

3. Replace 15-Passenger Vans With Safer Transportation

In 2001, 2002 and 2004, the National Highway Traffic Safety Administration (NHTSA) issued a warning that 15-passenger vans have an increased risk of rollover accidents and do not adequately protect passengers from side-impact collisions.

We haven’t heard much about this lately and while manufacturers have added some safety features on newer 15-passenger vans, the NHTSA warning remains in effect and as of 2005, federal law prohibits the use of 15-passenger vans for school-related transport, and high school age and younger students.

Despite their convenience, religious organizations should be encouraged to replace these vehicles with safer transportation.

4. Layoffs – Be Very Careful

Unemployment is at its highest rate in decades. When the money is tight, churches and schools may be forced to make the decision to reduce staff. Before you decide to lay off anyone, learn the right and wrong ways to handle these delicate situations.

Federal laws, as well as many state laws, actually permit religious organizations to discriminate in employment decisions in some cases. Familiarize yourself with those laws and the limitations in this provision. Follow your employee handbook as it relates to benefits, termination, and grievance procedures.

And while not meant to serve as a replacement for acting wisely in employment situations, you should consider protecting your ministry with Employment Practices Liability Insurance. This is an insurance that covers an organization against claims alleging damages because of wrongful employment practices, wrongful terminations, and unlawful discrimination.

5. Develop a Church Policy and Procedure Manual

Each church and non-profit organization should have a thoroughly prepared Church Policy and Procedure Manual which clarifies acceptable youth activities, requirements for volunteers working with children and youth, internal controls of accounting procedures, and internal measures on background checks and other related requirements for volunteers and staff members. In other words, religious organizations should have a plan for conducting business.

The combination of people and property provides limitless potential for expanding the Kingdom. However, church leaders must also take precautionary measures to protect themselves and all they steward. That’s when it becomes less about insurance and more about telling the story.

I love to tell the story