Understanding Insurance

Insurance can seem complicated and overwhelming—but in reality, it's kind of like a good cup of coffee.

Image of two men at a coffee shop, one has his hand on the other's shoulder in support while the other one is visibly writing something on some notebooks in front of him

Elements of a ministry insurance policy

Property & Liability Policy
The first item that goes into your mug is a property and general liability policy. It's your premium roast. In the same way you choose a decaf or regular coffee—or light or dark roast—you can choose to cover basic, broad, or special perils depending on your needs. Perils are causes of loss, such as wind, fire, or hail.

Endorsements
Once you have your foundation of property and liability coverage (your black coffee), endorsements are added to customize protection. You may need a pump of vanilla, some sugar, and cream in your coffee—or you may just need a dash of milk. Your insurance coverage can be personalized in a similar way by adding endorsements to the policy. Brotherhood Mutual has hundreds of ways your policy can be fitted to your needs.

Additional Coverages
When you’ve made your perfect coffee, you might want a pastry to complete your morning—a donut or a croissant to satisfy your sweet tooth. You can also bundle other insurance coverages with your property and liability policy, such as workers' compensation, auto insurance, accident insurance, global mission protection and more. Brotherhood Mutual has many options to protect ministries.

When you’ve worked with your agent to determine the coverage and endorsements that are best for your ministry, you’ll end with a policy that is personalized to your ministry. Ready to start the conversation? We're happy to connect you with an agent.

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What do I need to look for in my policy?

Many people think all insurance policies are the same from company to company, but the truth is that coverage can vary greatly. The details matter, so it’s important to know how to read your policy. It's also wise to seek council from a trusted agent.

Declaration Page

When you receive your policy, the first thing you’ll see is your declaration page—or dec page. Review your dec page to make sure the information on it is accurate. It will include important information like:

The name of your legal entity, which is the insured organization.
The term or duration of your insurance coverage, including a list of the types and amounts of insurance coverage.
Variable information that customizes your policy to reflect your insurance needs.

Definitions

This section explains key terms that are used throughout your policy.

Principal, Supplemental, and Additional Coverages

This section is the heart of your policy, detailing who, what, and where your policy is designed to protect for triggering perils.

Conditions

Conditions describe what you and the insurance company must do in the event of a loss. For example, you need to notify the company of the loss within the timeframe given.

Exclusions

Exclusions tell you what is not covered by a specific insurance form. Coverage excluded in one form may then be included in another form within your insurance package. It’s important to read all of the forms in the policy to have a clear understanding about how your ministry is covered.

Payments

This describes what and how payments will be made at the time of a covered claim.

What are some basic insurance terms I should know?

Premium

The cost of an insurance policy

Deductible

The part of the loss that you (the insured) pay for before your insurance pays

Peril

A cause of loss

Endorsement

A document that changes the provisions of an insurance policy to add, reduce, or clarify coverage

Extensions

A type of endorsement that add coverage to provisions of a policy

Policy Period

The dates that a policy is active

Policy Territory

The geographical area in which damage or injury must occur for coverage to apply

If you want more guidance, let us connect you with an agent.

How do I choose the best insurance company for my ministry?

When you’re looking for insurance, consider whether the companies you want a quote from meet the following criteria.

Unique expertise in ministry-specific risks
Personal care and attention
Coverage that equips your ministry to care for volunteers and congregants
Resources that will help you manage risk
Coverage with a focus on ministry continuation
Financial stability
Innovative services and offerings dedicated to helping ministries thrive
Local, knowledgeable agent who cares about your ministry and can answer your insurance questions

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How does insurance fit into my mission?

As followers of Christ, we are called to bear one another’s burdens—working together to advance the Kingdom. Insurance is one of many ways to fulfill that call. If a fire consumes your building or you face an unexpected lawsuit, you can lean on your insurance to fill the financial gap. Your financial stewardship helps foster sustainability in your ministry, which is why making wise decisions about insurance is one of the most important steps you can take to keep your ministry thriving.

How does insurance help us bear one another’s burdens?

Think of insurance as a chain you build to care for one another. When multiple ministries contribute their individual premiums, those dollars can be used to care for losses—such as when a ministry is damaged by water or fire. Even when you don't have a loss, you can help bear the burdens of someone who does.

Though this is an oversimplification of insurance finances, the big picture from our perspective looks like this:

Your premium is more than just good stewardship of your ministry. When you partner with a ministry-focused insurance company, your premium can help ministries across the nation continue their work.

The information on this page offers a broad overview of insurance and should not be interpreted as a contractual agreement. Specifics regarding coverage, limits, and services might not apply to all organizations and can differ by location.
All coverage forms and accompanying endorsements are subject to their terms, conditions, coverage limits, limitations, and exclusions. For more details on the information provided on this page and their availability, speak with an agent today.

Your Brotherhood Mutual agent can walk you through various coverage options and limits, and create the right insurance protection for your ministry.

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