American Church Group - Colorado

Rethinking Insurance: Offering a Fresh Perspective

By Craig Cable, Regional Director
American Church Group of Colorado

Let's face it, the world is constantly changing, and it's fascinating to witness the rapid evolution happening around us. Some futurists even predict that in the next two decades, the rate of change could be four times what it is today, and an astounding 16 times in 40 years. These are exciting times, and one of the sectors at the forefront of this transformation is the tech industry. Just consider that a staggering 90% of the world's data was generated within the past two years alone, which is truly mind-blowing!

Additionally, we can't ignore the unprecedented changes in our climate, which are affecting catastrophic weather events. Regardless of the debates surrounding the reasons for climate change, one thing is undeniable: change is happening. Over the past decade, the United States experienced a 67% increase in weather-related disasters costing over a billion dollars each. This translates into $880 billion in higher losses, compared to the previous ten years.

If you've been managing your ministry's insurance policy, you've probably noticed the challenges that come with changes in the cost of building materials, labor, and inflation. Insurance premiums have been on the rise, making it difficult for your ministry's budget to keep pace. We understand the strain this may put on your financial resources, and we're here to support and guide you through these challenging times.

Let's take a fresh look at some key aspects of your insurance strategy:

1. Rethinking Deductibles: While it's been common to aim for the lowest deductible possible, the current landscape requires a new approach. With increased insurance rates, opting for lower deductibles means higher premiums. To address this, consider setting the deductible at the highest amount your ministry can comfortably afford to pay out of pocket. Not only will this help reduce your annual premium, but it will also discourage multiple smaller claims that could negatively impact your claims history.
2. Rethinking Property Claims: Your insurance rates and insurability can be affected by the number of claims you file. Instead of relying on insurance for every property loss, focus on using it for significant losses that exceed your ministry's financial means. For minor losses that your ministry can handle financially, consider covering them independently. Of course, this advice doesn't apply to liability claims. If you have an incident that could turn into a liability claim, please contact our team so that we can advise you on whether to file a claim or not.
3. Rethinking Risk Mitigation: Investing in risk mitigation is a smart move. Upgrading roof coverings, repairing sidewalks, and installing security systems are all valuable steps that can help your ministry avoid future claims. The long-term benefits of preventing substantial claims far outweigh any minor savings on your annual premium.

We understand that change can be daunting, but we're committed to being your risk management partner for the years to come. As some national insurance carriers pull out of states like Florida, Texas, and California, we're here to stay and support you every step of the way.

If you have any questions or concerns about your insurance coverage, we encourage you to reach out to your local agent or by emailing our dedicated Client Support Team at clientsupport@americanchurchgroup.com. Let's schedule a policy review and work together to ensure you have the right coverage and explore opportunities to reduce your premium when possible. We're in this together, and our goal is to make sure your ministry thrives amidst these dynamic changes.