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Created for Churches

Why was UMI Created for Churches?

The 1976 General Conference Charge to GCFA

The General Conference first required the General Council on Finance and Administration (GCFA) to make available a "church-wide [property and liability] insurance program" in 1976. (See ¶907.13, The 1976 Book of Discipline.)  Although the legislative history is in archives, the need for action in 1976 is most likely represented by one or more of the following concerns:

Some number of local churches was inadequately insured. Some were missing key coverages. Others had inadequate limits or couldn't afford certain coverages. Still other churches were on coastlines, flood plains, and fault lines or in tornado alleys and catastrophic property coverage wasn't consistently available.

Recent surveys of annual conferences highlighted a continuing and pervasive lack of proper insurance protection:

% of Churches  Deficiency     
42% No Workers Compensation coverage
71% No Sexual Misconduct Liability (SML) coverage
98% Of Those churches WITH SML coverage, those with limits of $500,000 or less
68% Churches without Directors’ & Officers’ (D&O) liability insurance
52% Of those churches with D&O, those without Employment Practices insurance

By insuring your church with UMI, you support GCFA and the UMC

United Methodist Insurance is a non-profit captive insurance company started by the General Council on Finance and Administration (GCFA) of The United Methodist Church, so favorable financial results will support GCFA and the church.  As more churches join UMI, UMI is able to broaden its coverages and the territories it insures, and it also stabilizes the premiums offered to churches.  In addition, the more churches that are insured by UMI, the more efficient UMI becomes, which can reduce premiums.

How is UMI designed to protect our churches?

  • GCFA and UMI, in conjunction with several annual conferences, have developed minimum insurance coverages and limits based on historical losses in the UMC;
  • UMI provides property valuations using industry leading tools to ensure property limits are accurate;
  • The structure of UMI is based on (and leverages) successful insurance programs in other denominations;
  • UMI offers much broader coverage designed for churches (SM, Pastoral Counseling, D&O, and many others) than commercial insurers;
  • UMI was designed to reduce the dependence on and volatility of commercial insurer premiums;
  • UMI is focused on customer service to churches – customer service staff have an average of more than 22 years of insurance experience, and customer retention is significantly higher than competitors; and,
  • UMI is supported by some of the top reinsurance and insurance companies in the world.