ASK THE EXPERT: The Importance of Bonds to Local Church Ministry

Updated: Mar 17


Much like property or commercial auto coverage, bonds play an important part in helping to keep your church protected. They’re issued to people with fiduciary responsibilities, and the Book of Discipline requires that all church treasurers be bonded. If your ministry doesn’t currently have a bonded treasurer, it could be at serious risk of financial loss should an incident arise.

A surety bond (bond) helps ensure financial obligations are met and/or provides coverage for certain damages if those obligations are not met. For example, if a treasurer intentionally or unintentionally mishandles funds, a bond can help your church recover associated losses. A bond mandates that the insurance policy that bonds the treasurer will pay a set amount of money to the insured if the treasurer does not meet a contractual obligation. It is important to remember that even if you have employee crime and dishonesty coverage, it may not necessarily provide the same level of protection as a bond. It may be insufficient in some cases. Unlike employee crime and dishonesty coverage, bonds do not require a deductible payment. A bond is a stand-alone product and the protection it offers is not typically included with standard property and casualty coverage. Another important thing to remember about bonds is that while treasurers are required to be bonded, bonds can be obtained for anyone at your church who has access to financial information. Bonding these individuals can offer your ministry added protection and is something to consider.

Click here to read bond FAQs.

Don’t have a bond but not sure where to start? It is quick and easy to get one through the United Methodist Insurance Program. Call 866-203-0777 for your free bond quote today!