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2008 Property, Casualty and Worker's Compensation Insurance Program Renewal

Q: How has the Connect Insurance Database been improved from last year?   
A:  Much effort and attention was put into the database to make it more user-friendly for local churches and ensure that only the most necessary questions were asked.  A major improvement is that you can now print insurance schedules – Property, Vehicle, Drivers, etc - from the Connect site.   The current format also makes the information obtained more accessible to our insurance brokers for renewal and billing purposes. 

Many thanks to all the churches for their assistance in this time-consuming, but important task.

Q: How did the annual insurance review go this year?
A: After a slow start, we had over 95% of all the churches complete their annual insurance review on CONNECT.  This is a very high percentage and all churches should be commended. 

Q: How does Connect impact the Conference insurance renewal?
A:  The information that the churches put into CONNECT is gathered, sorted and analyzed.  It is then sent to the insurance carriers for quotes.    This information is also used in 2008 for property, casualty and workers compensation billing to the local churches.  Accurate and prompt information from the churches was critical in this process.    

Q:  What will the change be for insurance premiums for 2008? 
A:  At this exact moment we do not know what the insurance premiums will be for 2008.  As noted above, the conference data is being reviewed at this time by prospective insurers and quotes will be submitted.   

Q:   Can you give an estimate of what the change will be?
A:   For property and casualty insurance, we are diligently working to hold insurance rates flat (no increase) for the overall Conference insurance program.  
For workers compensation insurance, rates have been trending downward and as such, we expect a continued slight reduction.

It is very important to note that increases/decreases/changes to coverage at your church will affect your premium. For example, if your church increased the reported value of the sanctuary, or added another vehicle to the insurance program, then the insurance premium for your church will increase.

If you must submit a number for preliminary budgetary reasons at your church now and you have had no changes at your church, we would suggest an estimated 10% increase.

Q:   When will we have firm numbers?
A:  We expect to have the insurance quotes for the conference by the beginning of December.  Our goal is to have the invoices to the local church by early January.  We are currently a month ahead of where we were last year at this time. 

Q:  What could affect the insurance premiums?
A:  Conference wide, the main variable in the insurance premiums is the hurricane season.  A hurricane landfall anywhere in the United States affects the insurers that we have insurance coverage with.  This could certainly slow down the insurance process for the conference.   A major, direct hit within the Florida Conference would have a significant impact on the insurance coverage. 
Other than hurricanes, claims made by the conference churches affects the insurance rates as insurers review the Conference “loss history” when evaluating the risk.  Continued efforts being made by the local churches to manage their risk are imperative in this process.

Finally, as noted above, we must reiterate that increases/decreases/changes to coverage at your local church will affect your premium. 

Q:  What about premiums for vehicles in 2008, including 15 passenger vans?
A:   The premium for all vehicles (with the exception of 15 passenger vans) will not increase.   Please also note that there has not been a significant increase in per vehicle premiums for many years.  There will be a slight charge for trailers, watercraft and golf carts.

With regards to 15 passenger vans, it appears that we will be able to secure continued insurance coverage for these type vehicles in 2008.  However, pursuant to the recommendations passed at the 2007 Annual Conference held in June, the premiums for these unsafe vehicles will be escalating sharply for 2008.  The exact increase has not yet been determined. 

Attached are the recommendations passed by Annual Conference for reference. Your continued assistance in phasing out these catastrophically dangerous vehicles is encouraged and greatly appreciated.