Church Insurance Premiums Jump Up to 30 Percent, but Market May Be Easing
Severe weather, abuse claims and large jury awards have driven costs up for congregations; one Mississippi church saw a 119 percent rise in three years.
See where this is ›NASHVILLE, Tenn. —
Churches across the country have seen insurance premiums climb 12 to 30 percent this year, according to an industry journal analysis cited by Baptist Press, but insurance leaders say some relief may be on the way. Baptist Press reporter David Roach's story was published Oct. 28 by Kentucky Today.
See where this is ›Pastor Adam Wyatt of Bethel Baptist Church in Monticello, Miss., said his church's insurance has gone up 119 percent over three years. “One of the things that is really hurting church budgets is insurance,” Wyatt wrote on Facebook.
Andre Krutainis, vice president of specialty portfolios at GuideOne Insurance, pointed to a mix of severe weather, sexual abuse cases, changing state laws and jury awards that have risen faster than inflation. He said losses strained the three largest church insurers, GuideOne, Church Mutual and Brotherhood Mutual, which limited coverage and raised prices, while some other carriers stopped covering religious groups. Krutainis recalled a pastor who told him he had to choose between insurance and his own salary. “I've had a pastor cry in a meeting,” he said.
Matt Cardwell, who leads the property and casualty team in GuideStone Financial Resources' insurance division, said the market has begun to soften over the past 12 to 18 months after three to five hard years. “Many churches are starting to see lower premiums across the board,” he said.
This year GuideStone, a Southern Baptist entity, began acting as a broker that connects churches with dozens of carriers rather than working through a single one. The model now serves 13 southeastern states, with plans to expand toward 48 states; New York and Hawaii are left out because of their insurance laws. Cardwell said one Texas church cut its property and casualty costs by 17.5 percent after switching carriers.
James Brown, vice president of PointeNorth Insurance Group in Birmingham, Ala., urged churches to have someone other than their agent review the policy every year and to work with an agent who specializes in churches. He said leaders should tell their agent about activities such as daycare field trips and overseas mission trips, and features such as stained glass or pipe organs. “Know your operations and ask questions to your agent specifically about your operations,” Brown said.
