Operations 103 Class 8 Insurance For The Church

1. Operations 103 Class 8Insurance For The Church

2. An often-overlooked area of study is insurance for the church.  That is, until it is too late.  How long can a minor wait to file a sexual abuse claim?  What is your reporting process and what timelines do you have to observe?  This class will investigate the size of umbrella policies and how much insurance is enough.  We will look into liability, property & casualty, and automotive insurance, to name a few. Today’s Topic

3. Eric Rojas is the Executive Pastor of Christ Community Church of Chicago—4 campuses with 5,500 in worship.  Eric has been on staff since 2000. He received his Bachelor’s degree from Judson University and his Masters of Divinity from Trinity Evangelical Divinity School. During his 25-plus years of ministry, Eric has served in churches as a youth pastor, adult ministries pastor, small groups pastor, associate pastor, worship pastor, and men’s pastor.  He also loves coaching ministry leaders through speaking, writing and working with church leadership teams. Eric Rojas

4. INSURANCE FOR THE CHURCH Today’s legal system treats religious not-for-profits like businesses that have a high potential for accidents & property damage. Exposure: • People visiting your facility each week • Sponsored activities…sports, picnics, trips, retreats, etc. • Volunteers doing variety of activities • Staff • Unoccupied spaces, vulnerable to burglary/vandalism A Major Responsibility

5. INSURANCE FOR THE CHURCH A POLICY IS ONLY AS GOOD AS THE COMPANY BEHIND IT Select a company that: • Is Financially reliable (Rated ‘A’ or better) • Is Service oriented • Has agents familiar with the special needs of religious organization Before purchasing: • Read through / have policy terms & conditions explained • Non-Assessable policy • Check references for both company and agent • Investigate group insurance options Selecting An Insurance Agency

6. INSURANCE FOR THE CHURCH • ASK THESE QUESTIONS: • Are you pleased with the service you receive? • Did the agent clearly explain the coverage? • Is he or she responsive to your questions and concerns? • Are phone calls returned promptly? • Does the agent follow up on important matters in writing so that no misunderstandings develop? • Does the agent meet periodically with your insurance committee? • If you’ve had a claim, was it handled promptly, courteously and fairly? References

7. INSURANCE FOR THE CHURCH Determining the right amount of insurance • The amount of insurance you carry = how much you receive for a loss • First step is calculating the cost to replace your building & contents The Multi-Peril Policy

8. INSURANCE FOR THE CHURCH Determining the right amount of insurance • The amount of insurance you carry = how much you receive for a loss • First step is calculating the cost to replace your building & contents Understanding Co-Insurance Requirement The Multi-Peril Policy

9. INSURANCE FOR THE CHURCH FAILURE TO MEET CO-INSURANCE REQUIREMENT Step 1: $250,000 (value) x 80% (co-insurance percentage) = $200,000 Step 2: $100,000 (what you carry) / $200,000 (what you are required to carry) - .50 or 50% Step 3: $40,000 (the loss) x .50 = $20,000 Step 4: $20,000 - $500 (deductible) = $19,500 $19,500 is the amount you receive from the insurance company $500 is the deductible $20,000 is what the co-insurance penalty cost you The Multi-Peril Policy

10. INSURANCE FOR THE CHURCH ADEQUATE INSURANCE TO MEET CO-INSURANCE REQUIREMENT Step 1: $250,000 (value) x 80% (co-insurance percentage) = $200,000 Step 2: $200,000 (what you carry) / $200,000 (required to carry) – 1.0 or 100% Step 3: $40,000 (the loss) x 1.0= $40,000 Step 4: $40,000 - $500 (deductible) = $39,500 $39,500 is the amount you receive from the insurance company $500 is the deductible The Multi-Peril Policy

11. INSURANCE FOR THE CHURCH Determining the right amount of insurance • The amount of insurance you carry = how much you receive for a loss • First step is calculating the cost to replace your building & contents Understanding Co-Insurance Requirement Replacement vs. Actual Cash Blanket Insurance Choosing Your Coverage…. • Special (All Risk / Comprehensive) • Specified Cause of Loss The Multi-Peril Policy

12. INSURANCE FOR THE CHURCH Choosing Your Coverage…. • Signs • Glass • Building Ordinances • Earthquakes & Floods • System & Equipment Breakdowns • Theft & Employee Dishonesty • Loss of Income Protection The Multi-Peril Policy

13. INSURANCE FOR THE CHURCH • Insurance For When You’re Sued • Special Activities Require Special Protection • Fire Legal Liability • Schools and Day Care Centers • Alcohol • Broadcasting / Publishing • Watercraft • Counseling • Products • Worldwide Travel Multi-Peril Liability Protection

14. INSURANCE FOR THE CHURCH • Insurance For When You’re Sued • Special Activities Require Special Protection • Insurance For Vehicles You Don’t Own • Errors & Omissions Insurance • Setting Adequate Liability Insurance Limits Multi-Peril Liability Protection

15. INSURANCE FOR THE CHURCH • Workers Compensation • Buses & Cars • Liability Protection • Uninsured & Underinsured motorists • Medical Payments • Damage To Your Vehicle • Collision • Comprehensive • Umbrella (or excess) Liability Protection Important Add’l Coverages

16. INSURANCE FOR THE CHURCH Focus More On WHAT YOU GET (Services & Coverage) Than WHAT YOU PAY (Premiums) Look Beyond Cost

17. INSURANCE FOR THE CHURCH • Include the value of all items when establishing coverage limits • Create an inventory to record values at replacement cost • Photographs or videos are highly recommended • Store a copy of your inventory at a secure, off-site locationUpdate your inventory as needed Inventory Your Property

18. Eric Rojas Executive Pastor, Christ Community Church 37W100 Bolcum Rd, St. Charles IL 60175 630.485.3350 erojas@ccclife.org Contact Information