Be loyal to the congregation, not the sales rep
Whether it’s friendship or insurance, seeing clearly pays off.
By Fritz Hahn
Loyalty is a commendable quality. But it should be based on well-earned trust.
Reliability and devotion are essential ingredients of friendship. But if one of the friends is found to be chronically deceptive, then loyalty must be earned (or re-earned).
When it comes to insurance, an undue sense of loyalty can lead churches to sign agreements that serve them poorly. An ill-considered contract could leave a church exposed to great risk without adequate resources. Not to be melodramatic, but you really could lose it all.
Churches can be nice and wise at the same time
A wonderful quality of churches and church leaders is their desire to get along with everyone. This includes their insurance rep. Because of this amicable nature, insurance is often purchased without fully understanding what it covers (and doesn’t cover). These purchasing decisions can be based on a relationship with a sales rep who is a church member or his friend (or friend of a friend). Because of this relationship, “rocking the boat” is not an option.
I certainly don’t want to change this pleasant disposition. However, understand that a professional sales rep should take pains to help you understand what you’re paying for and educate you about all the options. A trustworthy rep will not feel threatened by the idea that you’re researching policies and pricing. If sales reps have your church’s best interests in mind, they will welcome this process and offer to be a resource.
Another reason your rep may frown on you getting bids is that many traditional church insurance companies use only one agency. That means there is only one option and it must be sold regardless of its shortcomings.
“Far too often, the purchase of church insurance is an emotional decision based on the idea that a church can’t make a sales rep unhappy. ”
While you may still get the coverage you need – and I hope you do – this peace-at-all-costs perspective should be reconsidered.
Ultimately, your goal is to protect the congregation from threats without and within. If church leadership isn’t doing this, who is? There can be great benefit in long-term business relationships. But the relationship must truly bring value. Sheer longevity, in and of itself, does not make the arrangement beneficial.
When a crisis hits, leaders will have to face their congregation – not their sales rep – and explain their decisions.
An insurance policy is a serious legal contract that should be purchased because it’s the best choice to protect the congregation from risk and loss. It should ensure the church’s ongoing legacy in the community.
No matter which company you use, make sure you understand what you need, what you have, what it costs and potential alternatives.
You owe it to your congregation to do no less.
Fritz Hahn is the founder of Ministry Pacific, a brokerage representing more than 1,000 churches in the Western United States.
