Insurance Premiums are on the Rise: 3 Tips to Mitigate Risks

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Insurance Premiums are on the Rise: 3 Tips to Mitigate Risks

By: Kyle McCutcheon

The insurance universe is changing. Insurance premiums are on the rise for ministries. Some have had their premiums increased 20% or more and others are struggling to find an insurance company to insure them. Moreover, even those that obtain coverage are facing much steeper deductibles.

Various factors are leading to insurance companies raising rates or getting out of writing policies for ministries altogether—inflationary pressure, crime rates, natural disasters, an increasingly litigious society to name a few. In addition, ministries are more prone to allegations of sexual misconduct due to their inherent work with minors. To make the environment more complicated, several states have rolled back the statute of limitations to bring sexual misconduct claims which has prompted decade’s old allegations to surface. Only time will tell if other state legislatures follow. And these are just a few of the factors that insurance companies are weighing.

What can you do? Be proactive. Mitigate risk.

Maintain a safe workplace. If you see an unsafe condition, take immediate action. For example, say one of the bathroom sinks is leaking. Do not merely use the other sink and walk around the puddle on the ground. Fix it and rope off the area in the meantime. Attempt to fix minor problems out-of-pocket that can safely and effectively prolong the good working conditions of your property.

Adopt best practices. For the safety and well-being of your ministry and its participants, it is crucial to conduct a thorough risk assessment. Once you have properly identified the risks, you can then adopt policies to mitigate those risks and train staff accordingly. For example, your ministry may need to appoint a security team and install security cameras if you are in a high-crime area. Doing so also helps to reduce the risk of a claim and provides evidence to a potential insurer that you are worth insuring.

Budget properly. Plan for increased premiums and deductibles and build that into the budget. Additionally, designate funds to properly maintain your property and to operate safely. A proactive mindset and approach can go a long way to mitigate risk and to make you desirable to an insurer.

Remember, insurance is a valuable tool to protect your ministry—but it should not be a substitute for excellent risk management planning which should be on every ministry leader’s radar who seeks to be a good steward of people and resources.
To discuss best practices to mitigate risk for your ministry or any other legal issues impacting your ministry or nonprofit, call or email us today to schedule a consultation with Mr. McCutcheon.

Kyle McCutcheon is an attorney at Provident Law. His practice areas include business, real estate, and estate planning as well as advising church and nonprofit tax-exempt organizations. McCutcheon is licensed to practice law in Arizona and Missouri, and he can be reached at or at 480-388-3343.


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