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Updated: Jul 25, 2022

Cost Cutting Through Insurance Is Not a Good Idea

The impact of COVID-19 has been felt far and wide. From governments and Fortune 500 companies to your favorite restaurant or local business, we’ve all felt the repercussions of it. Your ministry is probably no different.

During these difficult times, you may be forced to make tough decisions regarding your church’s future — whether or not you should reopen and if so, when, how you’ll keep staff and congregants safe, and if you need to cut costs to keep the lights on. While we can’t make those decisions for you, we can provide you with information to consider as you make an informed choice regarding your insurance coverage.

Here’s a breakdown on why cost-cutting through insurance usually isn’t a good idea:

Your church still needs protection.

Even though the frequency of visitors may have decreased since COVID-19 began, there is still the chance for someone to be injured in an accident on property or property damaged through vandalism, theft or other incidents. Retaining coverage can help ensure that your church is protected from potential liabilities.

Included in these liabilities are out of pocket costs. 

If you decide to cut your coverage or lower your limits to reduce costs, your ministry could be left paying out of pocket if an accident or emergency occurs. Any losses that aren’t covered, or any damages or lawsuits that exceed the liability limit, will leave you footing the bill.

Helpful alternatives to reducing your insurance coverage:

Reviewing your insurance needs. 

It’s always a good idea to regularly review your insurance coverage to verify that you’re adequately protected.  A review not only ensures that you have enough coverage in case of an emergency, but assures you’re not paying for things you no longer need. Have you recently stopped using a vehicle that was previously covered by your plan? Has your church reduced the size of its staff? Did you sell off a property or dispose of a high-value item such as a pipe organ? These are examples of things that can reduce the cost of your premium.

Reduce risk. 

It’s no surprise that insurance companies are risk-averse. By implementing a safety plan and training your staff, you help your insurance provider build confidence in you and show that you’re better prepared for an emergency. This can potentially lead to reduced premiums in the future.

In these uncertain times, everyone must remain safe, and your church is no different. You may be tempted to cut your insurance to save money, but as a result, you can ultimately expose your ministry to unnecessary risk or liability if something happens. Instead, look for alternative ways to reduce your costs to help make sure you remain protected.

Additional questions?

When you are covered by UMIP, we will be there when you need us. Churches have unique needs. As a part of the denomination, we understand the unique needs of United Methodist churches and their operations, which is reflected in our coverage options. Your ministry deserves outstanding insurance and UMIP works for you each day to help protect your church’s people, property, and finances.

Let's talk! Contact us at 484-654-3380 or at


This content has been prepared by United Methodist Insurance Company (UMI) for informational purposes only. No article or document may accurately contemplate all possible scenarios or church resources. As such, this information is meant to foster discussion by the individual church and its members to develop a plan tailored to its own circumstances. UMI is providing this information with no warranties or guarantees of any kind and it should not be viewed as legal, financial, or other professional advice. All liability is expressly disclaimed. Any claim examples described herein are general in nature, may or may not be based on actual claims, and are for informational purposes only. Any coverage available for a claim is determined from the facts and circumstances of the claim as well as the terms and conditions of any applicable policy, including any exclusions or deductibles. In the event of a conflict with the content herein, the terms and conditions of any issued policy will control. Individual coverage may vary and may not be available in all states.

The commercial insurance coverages for United Methodist Insurance are sold and serviced directly or indirectly by Sovereign Insurance Agency (CA Lic. No. 0B01380) ("Sovereign") and underwritten by various available insurance markets. Sovereign pays United Methodist Insurance a royalty for the use of its intellectual property.


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