Risk Management in 2020
By Jerry Sparks , CIC , CRM
A global pandemic has given birth to change , and it ’ s been inspiring to watch churches innovate and find new ways to spread the gospel and reach their communities .
Review your Insurance Policy Regardless of a pandemic , it is always a good idea to review your church ’ s insurance policy and ensure you have proper coverages . As your ministry grows , your insurance needs may grow as well . But with a global pandemic that involves a new disease , it ’ s important to review your policy and understand specific coverage . For instance , does your General Liability have a Virus / Communicable Disease exclusion ? BEWARE — many insurance policies have this exclusion and if the church is sued by someone alleging contracting COVID-19 , no insurance would apply .
Government Guidelines and the Church In this time of ever-changing COVID-19 policies and ordinances , the topic of how much a church should abide by local governance has become highly debatable . However , I ’ d like to offer two simple perspectives for your consideration . First , it is a biblical principle to act responsibly under the authority of government . Paul offers wisdom and encouragement on this topic in Romans 13 . Second , your insurance coverage may be adversely affected if you do not abide by the policies provided by your local governing authorities . Did you know the majority of church general liability policies has language that excludes coverage for a willful violation of a penal statute or ordinance committed by or with the knowledge of the insured ? Your church could be at risk of losing coverage and defense coverage if there is such a willful violation .
Infectious Disease Plan If you don ’ t already have an infectious disease plan established for your church , now is the time to create one . This plan will help your leadership know exactly what to do if and when an infectious disease spreads in your church .
Here are some considerations in developing your church ’ s Infectious Disease Plan :
• Refer to the latest information provided by the CDC .
• Create a section for church staff , which could include details on travel restrictions , not coming to work if feeling ill , working from home , and social distancing guidelines for the workplace .
• List the steps necessary to ensure a safe gathering at your church — sanitization practices , communication to congregants to do their part , expectations for children and workers in the children ’ s area , etc .
• Include information on Children ’ s Ministry , establishing clarity on what is expected of children and parents and what events would necessitate that area to temporarily close .
• Create clear communication to congregants that explains the precautions they are expected to take ( e . g ., social distancing , face coverings , awareness of symptoms ) and who to talk to if there are questions .
To see the full list of new risk management considerations , including sanitation best practices and day care guidelines for churches hosting students for virtual schooling , download the free Church Risk Management in 2020 eBook
here .
Jerry Sparks , CIC , CRM is Senior Vice President at AGFinancial . This article is excerpted from the new ebook , CHURCH RISK MANAGEMENT IN 2020 . For more great Insurance and Church Risk Management articles and videos , check out our
resource library dedicated to helping churches like yours . To ensure your church has the proper insurance coverage or for more information regarding risk management , contact our Insurance team at 866.662.8210 or
info @ agfinancialinsurance . org . AGFinancial is one of the largest financial institutions in America dedicated to serving churches . Our focus has always been the financial health of churches and ministers , offering an array of services including ministry loans , investments , retirement planning , planned giving , and insurance . For more information on how
AGFinancial can help you or your ministry , contact us at 866-621-1787 or
info @ agfinancial . org .
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