Taking Proactive Steps to Boost Insurability

by Jason Rochester
Managing Partner and Producer, Lightwell Insurance Advisors

A topic we've been talking about with ministries involves understanding and addressing the factors that influence insurability. This is part of a national conversation within the insurance industry. You may be more familiar with it based on your own personal homeowners or auto insurance. It’s also a concern for businesses, ministries and nonprofits. Let’s talk about some proactive steps your ministry can take to improve its insurability and ensure you are well-protected.

Understand Your Risk Factors
So, what does insurability mean? It's basically the appetite that insurance carriers have for a particular risk. For ministries, this means looking at factors like location, claims experience, and overall risk profile. If your ministry is in an area prone to natural disasters or has a history of frequent claims, it might be tougher to get favorable terms. But by understanding these factors, you can take steps to mitigate risks and improve your insurability.

Location, Location, Location
In real estate you always hear “location, location, location.” Just like in real estate, location plays an important role in insurability. Ministries located in areas prone to weather-related events such as earthquakes, wildfires, hurricanes, tornadoes, hail, and flooding are considered higher risk. Insurance carriers evaluate these factors when determining coverage terms. For example, ministries on the coast may face challenges due to storm surges, while those in tornado-prone areas need to be prepared for severe weather events. By being aware of these factors, you can take steps to mitigate risks. That’s something our team here at Lightwell can help with.

Regular Maintenance and Inspections
One of the most effective ways to stay insurable is through proactive risk management.  Regularly evaluate and maintain your facilities to prevent potential claims, especially when it comes to maintenance issues. This includes inspecting electrical systems, plumbing, HVAC, and roofs. By ensuring these systems are in good condition, you reduce the likelihood of filing claims for preventable issues.

Additionally, pay attention to the weather. Remember, your facilities are exposed to weather 24/7, not just when people are present. One way you can be prepared for severe weather is by having a plan in place that helps you prepare your building and your property for whatever type of storm is on the way.

Invest in Technology
Technology is your friend when it comes to managing risks. Implementing automatic water shutoff valves with smart leak detection, security systems, and other tech solutions can help you stay ahead of potential issues. These technologies not only mitigate risks but also show insurance carriers that you're proactive in managing your risk profile.

Take automatic water shut off valves, for example. They can prevent extensive damage from frozen pipes or plumbing leaks by shutting off the water supply and alerting you via an app. Even if it’s 2 a.m. on a Thursday and no one is at the church, you are not only going to get an alert, but it will shut off the water for you. Think about how much you save when water damage is actually prevented. This kind of proactive measure can significantly reduce the risk of costly claims. Similarly, modern security systems with key fobs or access codes, and visitor management systems can enhance the safety of your premises, especially for areas like preschools and daycares. Technological advancements like these are game changers for ministries and for insurance carriers.

Follow Your Child Protection Policies
Child protection is a critical area where ministries must be proactive. I hope we’re past the days of hearing ministries say, “it won’t happen to us.” Unfortunately, people with bad intentions are targeting ministries because of their trusting nature. Because of this, implementing sexual misconduct guidelines, abuse prevention policies, and conducting background checks are non-negotiable. Every volunteer who will be working near or with minors or vulnerable adults, regardless of their tenure or reputation, should be subject to the same rigorous screening process. Protecting the youth in your ministry is paramount, and having clear policies in place can prevent devastating incidents. This also demonstrates to your insurance agent that you are proactive in protecting your ministry and its people to the best of your abilities.

Engage with Your Insurance Agent
Finally, engaging proactively with your Lightwell insurance agent can make a significant difference. Have open conversations with your agent about your policies and potential adjustments. Whether it's increasing deductibles to save on premiums or exploring new coverage options, being proactive in these discussions ensures that your ministry is adequately protected.

Wrapping up
Increasing insurability is all about being proactive. By understanding your risk factors, maintaining your facilities, investing in technology, implementing child protection policies, and engaging with your insurance agent, your ministry can improve its insurability and continue to thrive. Taking these steps not only protects your ministry but also allows you to focus on your calling and mission.

Watch Jason's full interview here, or listen to The Lightwell Podcast on your favorite streaming service.

Lightwell Insurance Advisors is focused on identifying risks and crafting safeguards for organizations that lift up their communities. We're a trusted partner in understanding risk management and insurance protection.

This blog post provides a general overview of cybersecurity principles and insurance. It should not be seen as a contractual agreement. Details about coverage, deductibles, limits, and services may vary by organization and location. All coverage options are subject to their specific terms, conditions, coverage limits, limitations, and exclusions.