Assess Risk and Use Insurance to Manage
At the heart of risk management is the potential to suffer a loss at an estimated frequency and cost. Losses can be varied and related to property, liability, workplace injury, automobiles and misconduct to name a few. Smaller losses can be self-insured through internal reserves, while the potential for larger losses demands mitigation through insurance. It is important for congregations to be able to understand their needs for external coverage and the tradeoffs between premiums, deductibles and insured coverage.
An annual review of insurance contracts is a good idea, with an awareness of changes in risk and insurance costs. Be sure to understand the details of your policies, as it is not uncommon for special riders and options to be necessary to get the coverage you are expecting.