What Churches and Child-Serving Ministries Should Know Before Insurance Renewal

Churches and child-serving ministries across the country are experiencing serious sticker shock when insurance renewal notices arrive. Premiums, especially for liability coverage, are increasing. Deductibles are climbing. Coverage is becoming more restricted, or disappearing entirely. For churches, schools, camps and nonprofits serving children, these changes create real pressure on already limited budgets. Many leaders assume their only option is to shop around for another carrier.

But there is another strategy; one that insurance underwriters actually focus on.

Organizations that demonstrate strong risk-prevention practices often receive more favorable insurance terms. Understanding how insurance companies evaluate risk can make a meaningful difference when renewal time arrives.

Understanding How Insurance Companies Evaluate Risk

Insurance renewal decisions are rarely made when your organization receives its renewal paperwork. Underwriters typically review accounts at least 60–90 days before the renewal date and determine pricing, deductibles, and coverage terms during that review window. For organizations with a July 1 renewal, that evaluation often occurs in April or May.

If an organization waits until renewal paperwork arrives to demonstrate its safety practices, the decision has generally already been made. This means documentation showing how a ministry prevents claims and manages risk should be prepared and shared with brokers and carriers before underwriting review begins.

The Main Drivers of Insurance Claims

While insurance markets fluctuate, the primary causes of claims for nonprofits and religious organizations have remained relatively consistent.

Property Loss Drivers

Common property claims include:

  • Wind and hail damage
  • Water damage
  • Fire
  • Theft

Liability Loss Drivers

On the liability side, frequent claims involve:

  • Slip and fall injuries
  • Sexual abuse incidents
  • Recreational activity injuries
  • Volunteer injuries
  • Motor vehicle accidents

Interestingly, while armed violence events receive significant attention, they are not currently among the most common claim drivers for nonprofit insurers.

Because insurers focus heavily on these predictable loss areas, organizations that actively address them can significantly improve their risk profile.

Focus on Controllable Risks

Some risks, such as hurricanes or hailstorms, cannot be prevented.

However, many of the most costly claims are controllable risks.

Prevention examples include:

  • Fire prevention and facility safety
  • Fall prevention and facility inspections
  • Water damage and risk monitoring/mitigation
  • Vehicle safety protocols
  • Sexual abuse prevention systems
  • Volunteer screening practices

Organizations that document efforts to reduce these risks often appear significantly more attractive to underwriters. Showing clear evidence of prevention can influence pricing, deductibles, and even whether coverage remains available.

Documenting Abuse Prevention Efforts

Sexual abuse liability is one of the most serious exposures facing organizations serving children.

Insurance carriers increasingly expect ministries to implement structured prevention systems, not simply informal safety practices.

Organizations using the MinistrySafe System can document preventative protocols through a centralized platform.

This System allows ministry leaders to track and manage:

  • Training completion
  • Background checks
  • Reference checks
  • Applications and interviews
  • Policy acknowledgments

Using these tools, ministries can generate a snapshot report showing abuse prevention efforts at any given time.

Providing this documentation to an insurance broker or carrier provides the underwriter with clear evidence of risk management protocols, which many ministries cannot otherwise demonstrate.

Risk Prevention Should Extend Beyond Abuse Prevention

Abuse prevention is critical, but should not be the only documented safety effort. Insurance carriers look favorably on ministries that demonstrate proactive safety measures in other areas.

Examples include:

  • Regular facility inspections with documented corrective actions
  • Documented efforts of safety or security teams responsible for monitoring risk
  • Maintenance logs addressing hazards such as trip risks or fire prevention
  • Volunteer and staff training in safety procedures

When safety protocols are documented and shared with insurance carriers, ministries show that risk management is part of their culture, not just a policy on paper.

The Real Goal: Protecting People

Reducing insurance costs is helpful, but this should not be a primary motivation.

The primary reason to implement strong safety practices is simple:

Protect the people in your care.

Children, volunteers and staff members deserve an environment where risk is actively addressed and leaders are prepared.

When ministries take risk management seriously, however, a secondary benefit follows: stronger positioning with insurance carriers and better renewal outcomes.

Action Steps for Ministry Leaders

If your church or ministry has an insurance renewal approaching within the next six months, now is the time to act.

Start by gathering documentation showing your ministry’s safety practices, including:

  • Training records
  • Screening processes
  • Facility inspection reports
  • Safety procedures

Then work with your broker to ensure these materials are available before an underwriting review begins. Organizations that clearly demonstrate risk management protocols stand out, and generally receive more favorable insurance terms as a result.

To see a list of insurance carriers who partner with MinistrySafe, see HERE.