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Most pastors are not formally trained in financial management. Yet in many churches, it is the pastor who assumes responsibility for properly managing church finances. Is the pastor aware of the monetary risks that can threaten a ministry? Is the congregation prepared to move forward after a catastrophic event such as a tornado, flood, or fire? Is the church positioned to deal with a personal injury while on a mission trip, or a lawsuit charging sexual misconduct of a church employee? These questions point out that being a good, faithful steward isn't always easy.

The good news is that plenty of help is available.

Financial risks that threaten ministries fall in one of two broad categories. The first risk category includes events which, if they happen, can be financially disastrous. The risk is loss of money or property, which can result in loss of ministry. The second risk category includes insufficient funding to maintain or expand ministries. The result, again, is loss of ministry or even ministry opportunity.

The first risk category is generally managed with the help of property and casualty insurance companies. The most common property damage claim is for damage caused by wind and hail. Although less frequent, fire and lightening damage claims represent the highest dollar value. While most churches have property insurance, simply owning a policy is not enough to manage the risk of loss from unwanted events. It is common for churches to underestimate the cost of replacing unique architecture or to neglect inflation in estimating construction costs. Good stewardship demands frequent review of your church's insurance coverage.

Another common weakness in church insurance coverage is failure to properly estimate costs associated with community building ordinances, according to Patrick Moreland, vice president at Church Mutual Insurance Company. Standard insurance policies generally cover the building as it previously existed but do not pay for improvements required by law, such as adding an elevator, handrails, handicap ramp, fire doors, sprinkler, alarm systems, or additional exits. "If a church suffers even relatively minor damage, rebuilding 'as was' might not be allowed," says Moreland.

Property damage is only one risk of financial loss facing your church. Another area is liability. When someone is injured in your building, the church may be responsible for medical expenses and loss of wages, and also for "pain and suffering" as determined by a jury of non-church members.

Tour groups or mission teams traveling outside the United States face risks associated with poor medical facilities, religious intolerance, disease, and civil unrest, according to Mitzi Thomas of Brotherhood Mutual Insurance Company. Being homesick is difficult enough, but being homesick and injured or ill with some endemic disease can turn mission into misery. Many church leaders are not aware that insurance policies purchased in the United States often exclude coverage or provide inadequate coverage outside the country.

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