Church Risk Management Plan

Develop A Effective Church Risk Management Plan Helping to Save Lives and Church Insurance Costs

There are an estimated 320,000 churches throughout the United States according to the National Congregational Study survey and each of these churches serve a vital part of their community. They can be a source of hope and healing, but they can also be the site of tragedies if proper risk management is not in place.


An effective church risk management plan will help to protect the church congregation from potential liability and property risks. It is important to have a plan before an incident occurs so that everyone knows what to do in an emergency.


A well-thought-out church risk management plan should include “What-If” scenarios along with a checklist outlining the simple steps church leaders are able to follow.

What Is A Church Risk Management Program?

Church risk management is a comprehensive approach to stewardship that considers risks to people, finances, reputation, and compliance with the law. It is the process of identifying, assessing, and planning for potential risks that could impact your faith-based organization.


This includes risks such as legal issues, accidents, employee injuries, abuse of minors in a children’s ministry, vandalism, embezzlement, natural disasters such as earthquakes and floods, fires, and armed intruders, as well as the unexpected departure of key leaders due to moral failure or failing health.


A comprehensive risk management plan for your church is a great way to help prepare for any of these unfortunate circumstances so that you can be better equipped to avoid and/or reduce the risk of them occurring, and to help a church board of directors navigate solutions when bad things do happen.


It is essential to manage risk responsibly and not only lean on a church insurance policy to safeguard your people and church building.

luck is not a risk management strategy

Why Do You Need Risk Management For Churches?

1. To identify and manage all potential risks

Risk management is the process of identifying and managing a variety of potential risks. These risks include physical risks such as trip or slip hazards, psycho-social risks such as bullying, and risks that could impact the reputation of the church business. 


The management of risk should include assessing the likelihood and potential damage of each risk, creating a plan to control the risk, and identifying corrective action to reduce the risk score. 


Control measures could include elimination, substitution, engineering, isolation, and administration. The plan should also record any accidents or incidents, and review the effectiveness of the solutions.


2. To ensure that the church is prepared for potential dangers and various risks exposures

It is vital for churches to establish effective risk management guidance for employees and church members to follow. Risks and liability facing many churches today include child abuse, property damage, personal injury, wrongful termination, and sexual harassment.


To mitigate these risks, churches must take proactive steps to ensure that their employees and members understand their responsibilities and potential risks. 


3. To increase safety and reduce the risk of bodily injury or damage

The church risk management plan helps to increase safety and reduce the risk of bodily injury or damage by identifying potential risks and hazards and putting in place preventive measures to mitigate the risks.


The plan needs to focus on educating church members and staff on the risk management process and protocols, creating detailed plans and policies, and regular inspections and drills to practice them. 


4. To increase efficiency and ensure that resources are used effectively

A Church Risk Management Plan can increase efficiency and ensure resources are used effectively by providing clear guidance and best practices on how to protect and steward resources. By maintaining adequate insurance, keeping records, and performing background checks, churches can be aware of potential issues, plan for them, and respond appropriately.


Furthermore, by setting up accounting protocols, conducting counseling awareness training, and avoiding conflicts of interest, churches can mitigate risk and ensure that resources are used responsibly. 


5. To ensure compliance with government regulations

It is important to have a church risk management plan in order to comply with government regulations because it ensures the safety of everyone involved in the church and its activities, while also protecting the church from potential risks or liabilities.


The plan will help to ensure that church activities are in compliance with relevant laws and regulations, as well as serve as a guide for the church to follow when responding to any risks or incidents. 


6. To reduce liability and workers’ comp insurance premiums

A church risk management plan can help reduce liability and workers’ comp insurance premiums by taking a disciplined and hands-on approach to risk management. 


Some of the best church insurance companies offer risk management credits for churches that take active steps in eliminating safety issues and concerns. 


Churches whose workers’ comp policy qualifies for an experience modification factor, these churches can save thousands by keeping their employees injury free. This can be accomplished by using ergonomic chairs and removing the clutter around the church office.


7. To protect the church’s reputation and reduce the risk of lawsuits

A church risk management plan helps protect the church’s reputation and reduce the risk of lawsuits by providing a framework for best practices that ensure the proper stewardship of church property, counseling awareness, background checks for employees and volunteers, avoidance of conflicts of interest, and secure accounting practices. 


How To Create An Effective Risk Management Policy For Your Church MInistry?

Step 1: Make a committee successfully

Step-by-step instructions for successfully forming a committee for church risk management:


  1. Educate: Provide resources and training to all members of the security team to inform them of the crucial elements and responses of risk management. It is the team’s duty to provide education to both the board as well as the staff members. 
  2. Plan & Respond: Develop a security strategy that comprises educating members, establishing guidelines, conducting audits, and implementing operational procedures. 
  3. Train & Inform: Create an educational initiative that covers safety, security, and risk concerns that applies to the entire church. The team should frequently engage with small groups, critical committees, and members to deliver the information. 
  4. Follow Through: Design a plan for implementing your risk management scheme and enforcing surveillance for safety. Establish precautions and measures to ensure the protection of your organization, while gradually integrating them into the practices of your members. 
  5. Organize & Formalize: Get the support of your pastor, business administrator, and board. 
  6. Hold a Risk Workshop: Bring together people from all levels of operations to identify risks. This includes office staff, pastors, deaconry, service unit and activity team leaders, boards, and committee members.
  7. Monitor Progress: All ongoing activities, new ministries, special events, and building upgrades and construction should be filtered through the committee. Regular activity reports should be given to the church staff and administrative body. The team should meet at least monthly when first establishing a safety and security team and quarterly once you have a well-established safety program.


Step 2: Identify and analyze the risk

Churches need to Create an effective Church Risk Management Plan that involves the assessment of risk through identifying, analyzing, and controlling risks. The process of identifying risks should be the first step in the planning process. 


It involves capturing risks, articulating risks, and recording them. It is important to identify both tangible and non-tangible risks that could have an impact on the church.


Once the risks are identified, the next step is to analyze the likelihood and potential impact of those risks, prioritizing those with the highest impact. This involves scoring the risks as either low, medium, or high depending on their likelihood and potential impact.


Risk control measures should be implemented to reduce the likelihood of the risks occurring and the damage they could cause. Such measures include eliminating the risk, substituting processes, engineering, isolating the risk, and providing personal protective equipment.


Step 3: Document and monitor risks

It is essential to keep records of any accidents and incidents of harm and of all risk-related findings. As your church insurance agent, we work to keep your ministry as safe as possible and provide you with a number of forms to help report and monitor accidents.  


It is critical to conduct ongoing monitoring and deal with security issues and safety concerns that may cause harm immediately.


Step 4: Outline the charges and responsibilities

Step-by-Step Instructions for Outlining Charges and Responsibilities for an Effective Church Risk Management Plan:


  1. Establish a risk management team with clear roles and responsibilities: This team should include members with knowledge and experience in risk management, as well as those who have a clear understanding of the church’s current policies and procedures.
  2. Educate members on risk management: Provide resources and training to all members of the team to ensure they understand the importance and process of risk management. 
  3. Develop a risk management plan: This plan should include member education, risk management policies, inspections, church property insurance, liability insurance for churches, and activity protocols.
  4. Train and inform members: Establish a member-wide educational program to ensure everyone is aware of safety, security, and risk issues. 
  5. Follow through: Create a strategy for implementing and monitoring the risk management plan. 
  6. Review and update the plan: Regularly review and update the plan as needed, as well as the members’ understanding of the plan. 


Step 5: Make sure to state the objective of the plan for managing risks. 

The purpose of a church risk management plan is to protect the church and its members from potential harm by identifying, analyzing, and responding to risks. A risk management plan outlines specific strategies and tools to reduce or eliminate risks, as well as procedures to monitor and review the plan regularly.


By assessing the probability and severity of risks, the church can determine which risks should be given the most attention, and create risk control measures to reduce or eliminate them. An effective risk management plan also helps to educate the church staff, volunteers, and church members on safety and security matters, and create a leadership culture that views risk management as part of biblical stewardship.

risk assessment for churches

What Roles Does Church Insurance Have In A Risk Management Plan For Religious Organizations?

1. Church liability insurance provides financial protection in the event of an accident

Church liability insurance is an essential part of any risk management plan for churches. It provides financial protection for the organization and its members in the event of losses caused by unforeseen circumstances.


This type of insurance can cover a range of issues, including pastoral professional liability, directors and officers liability, abuse and molestation insurance, and more. Insurance can help to protect the church against claims for damages, as well as provide financial security in the event of property damage or injury. 


Contact our church insurance agency and learn how to keep your house of worship safe and secure.


2. Help to mitigate risks

Church insurance works by providing churches with a range of options to help them manage risk. These options include identifying and measuring risks, creating operational plans to prevent and mitigate risks, self-funding certain levels of risk, transferring risk to outside parties through indemnity and hold harmless agreements, and periodically reviewing and adjusting risk management strategies.


By having access to these options, churches can better protect their assets from potential losses due to risks.


3. Helps to ensure compliance with regulations

Church insurance helps ensure compliance with regulations by providing a layer of protection against financial loss due to potential legal issues. 


Mortgage companies will require church property insurance and your state will require workers’ compensation insurance for churches to cover them in the event of injury.


4. Provides coverage for legal costs

Church insurance provides coverage for legal costs associated with the church and its members. These costs can range from liability for accidents and property damage, to losses due to theft and fraud, to insurance claims of sexual misconduct. 


5. Insurance can assist with workplace safety

A church insurance company will offer risk management tools to help establish a plan of action so a ministry can take steps to prevent or mitigate potential risks and liability. These tools may include safety guidelines and training, background checks for employees and volunteers, crisis management planning, and legal resources for handling claims or disputes.


By implementing these practices and being proactive in addressing potential risks, a church may help protect its congregation, staff, and assets. Every church administrator and board is essential to managing key risks that affects the organization.


6. Church property insurance can help with property damage

Church building insurance can help reduce the financial burden associated with property damage in the event of an accident or natural disaster. In the case of an accident, the insurance will help to cover the cost of repairs and replacement of any damaged property.


In the case of a natural disaster, the insurance may also provide coverage for property that is destroyed or damaged. By having an appropriate amount of property insurance, churches can protect themselves from unexpected expenses and potential legal liabilities associated with property damage.


7. Workers’ Compensation insurance provides financial help to an injured employee

Workers’ Compensation insurance helps churches manage risks related to employees by providing financial protection if an employee suffers an injury or illness while on the job. This type of insurance helps to cover medical expenses and lost wages due to the injury or illness, and can also help to protect the church from legal action taken by the employee.


8. Provides peace of mind for board members

A church board of directors plays a vital role within a church to ensure it is safe for everyone who attends. Church insurance serves as an effective risk management tool for churches by providing financial protection against potential losses that may occur as a result of unforeseen events. 


Failure to plan is not an option for churches of all sizes. Your church services and weekly bible studies need protection to ensure everyone’s safety.  

risk management team

How to Establish A Risk Management Team?

Establishing a risk management team is crucial for any organization to mitigate potential risks effectively. Here are the steps to establish a risk management security team:


  1. Identify the roles and responsibilities of the team members, including the risk manager, analysts, and advisors.
  2. Devise a clear risk management plan that outlines the organization’s objectives, risk identification, assessment, mitigation, and communication strategies.
  3. Select team members based on their expertise and knowledge in risk management and related fields.
  4. Once the team is formed, conduct training to ensure they are aware of the risks involved and the organization’s policies for managing them.
  5. Regular communication and collaboration between team members and relevant stakeholders will be essential to keep everyone aware of potential risks and their mitigation strategies. 

What Roles Do Risk Assessment Have in the Risk Management Process?

Risk assessment plays a crucial role in the risk management process. It involves identifying potential threats and vulnerabilities and evaluating the likelihood and impact of those risks occurring.


Based on this analysis, risk management strategies can be developed to mitigate, accept, or transfer the risks. Without a risk assessment, organizations and individuals would be blind to the potential hazards they face, and would not be able to take proactive measures to minimize the impact of those risks.


Risk assessment also helps to prioritize risk management efforts by focusing on the most significant risks. This enables organizations to allocate their resources effectively, and ensure that they are addressing the most critical issues first.


Risk assessment helps board members identify how much to budget to address concerns identified in the risk assessment. 


Risk assessment is a fundamental component of effective risk management, and organizations should prioritize it to ensure their continued success and sustainability. 

Frequent asked questions faq

What are the Components of a Church Risk Management Plan?


The key components of a Church Risk Management Plan include the following:


  1. Identify risks. List all the potential risks that could occur in your church, such as injuries, accidents, lawsuits, fires, natural disasters, theft, and so on.
  2. Evaluate risks. Determine the probability and potential impact of each identified risk.
  3. Develop strategies. Create strategies to reduce or eliminate risks, such as prevention, insurance, and training.
  4. Implement strategies. Put plans in place to ensure that risks are minimized or avoided, including staff training, safety policies and procedures, and building maintenance.
  5. Monitor and review. Regularly monitor and review risks, and update plans as necessary.
  6. Report and document. Document all risks, plans, and training, and report on any incidents that occur.
  7. Prepare for emergencies. Develop emergency plans and procedures, and provide appropriate training and equipment.
  8. Insurance. Ensure that you have adequate insurance coverage for all areas of risk.
  9. Training. Provide regular training for staff and volunteers to ensure that they are prepared for any potential risks.


What are the top 30 Potential Risks a Church Risk Management Plan Must Consider?


The top 30 risks churches must consider as part of their risk management plan include:


  1. Natural disasters
  2. Weather emergencies
  3. Child sexual assault
  4. Medical emergencies
  5. Sports injuries
  6. Violent or disruptive individuals
  7. Theft and embezzlement
  8. Libel, slander, and defamation
  9. Kidnapping
  10. Employment lawsuits
  11. Spiritual counseling liability
  12. Accidents and falls
  13. Emotional distress caused by the church leadership
  14. Sexual offenders within the church
  15. Auto accidents
  16. Employee injuries
  17. Security for church property
  18. Cybersecurity
  19. Negligence
  20. Property damage
  21. Physical and emotional harm
  22. Financial losses
  23. Poor communication
  24. Poor record keeping
  25. Unethical behavior
  26. Unanticipated expenses
  27. Uninsured events
  28. Poor leadership decisions
  29. Unmanaged conflicts
  30. Legal issues


How to find a risk management plan template?


An experienced church insurance agent at Integrity Now Insurance Brokers will have access to templates to help you get started with your risk management plan.


How can I ensure my Church Risk Management Plan is implemented effectively?


To ensure that your Church Risk Management Plan is implemented effectively, it is critical to have a team of dedicated volunteers and staff members who are trained and equipped to handle various risks that may arise during church operations.


Regularly conduct risk assessments and review our policies and procedures to ensure that they are up-to-date and effective. Includes measures to prevent and mitigate risks, such as safety protocols in case of emergencies or accidents.


It is critical to encourage and promote a culture of safety awareness and responsibility among your congregation members. Integrity Now Insurance Brokers believes that the success of a church’s risk management plan depends on the participation and cooperation of everyone involved in our church community, including volunteers, staff, and attendees. 


What are the best practices for creating a Church Risk Management Plan?


Creating a Church Risk Management Plan is a crucial part of ensuring the safety of your ministry and its members. Here are the best practices for developing and implementing a plan in the areas of your ministry:


  1. Assess the risks within the church setting by asking what would happen questions based on worst-case scenarios
  2. Analyze and clarify the detailed risk control measures
  3. Make good risk control decisions
  4. Implement risk controls
  5. Become informed by supervising and reviewing information regularly


How Often Should A Church Risk Management Plan be Reviewed?


A church risk management plan should be reviewed on a regular basis. Ideally, the plan should be reviewed annually, and board members can set the review date three months before renewing your church insurance coverage.


This helps ensure that the right types and levels of coverage are in place for your church. Make sure to take time to deal with loss prevention so your small church insurance program remains affordable.


Additionally, a church risk management plan should be assessed whenever there is a change in the organization, such as moving or changing premises, starting a new project, running a big event or traveling overseas, creating a new workforce and/or new work procedures and tasks, or developing new risk control measures in response to a risk review.

Contact Integrity Now Insurance Brokers for Our Risk Management Services

If you are in need of risk management services, Integrity Now Insurance Brokers is the team to contact. With years of experience in the church insurance industry, our team of professionals understands the importance of protecting your assets against potential financial losses.


We tailor our risk management services to your specific needs and provide solutions to help mitigate potential risks. Our team will work closely with you to identify any areas of vulnerability and implement safeguards to protect your business, property, and employees.


By partnering with us, you can rest assured that your assets are in good hands. We are committed to providing excellent customer service and building lasting relationships with our clients.


Contact Integrity Now Insurance Brokers today to learn more about our church insurance products and how we can help you protect what matters most. 

Recent Blogs

Accessibility Toolbar

Scroll to Top