Given the current financial climate, it is advisable for PCCs to review their outgoings on a regular basis, particularly as fixed term contracts come to an end. Arranging insurance is one of the most important duties the PCC has and many of parishes are on multiyear agreements that are due for renewal in April 2023. It is the PCC’s responsibility to choose and arrange insurance, and the DBF is not authorised to give advice on insurance policies, provision or providers. However, given that parishes may be taking the opportunity to seek alternative quotes, we would like to offer the following reflections to help PCCs think through the options. Parish Buying has also produced a helpful guide to choosing the right insurer for your PCC.
- While we all hope not to call on it, it is crucial that the insurer does offer the right cover and handle claims well if they do occur. Shaving £100 off the premium is a false economy if a £100,000 claim is later not met. You could carefully compare insurers’ history and in particular their claims handling track records. PCCs may wish to ask questions such as what big church claims the insurer has dealt with; what volume of church claims have been dealt with; what percentage were settled and what percentage rejected.
- If a PCC receives quotes from multiple providers, and there is a significant difference between insurers, parishes could ask the company with the higher quote why that is.
- Terms and conditions are important. In particular, PCCs should check the basis on which insurers offer liability cover. Most insurers provide insurance on the basis that cover is available if the PCC was insured with them at the time of the incident, and this appears to be the basis recommended by insurance experts. Some insurers provide cover if the PCC is insured with them at the date the claim is made. Given that safeguarding claims in particular can often be made years or even decades after the event, PCCs should consider the risk of falling between two policies, either now or if switching again in the future. This could happen if a claim is made when insured with a company which looks at whether they were the insurer at the date of the incident, but at the date of the incident, insurance was held with a company which looks at whether they were the insurer at the date of the claim. If switching between the two different bases, PCCs should therefore make sure they understand which claims would be covered by which insurer, what would happen if they switched back in future, and ask whether prior acts cover is also required.
Depending upon circumstances a PCC may also need insurance for employer’s liability, building works, church halls, church owned houses, etc. The PCC should look at specialist insurers which provide church insurance and make a decision on which would provide an appropriate level of cover at the best value, for their parish. We are currently aware of two companies that have developed policies specifically designed for Church of England parishes.
Ecclesiastical “ParishPlus” policy is described here.
Details for Trinitas Church Insurance Services who offer a “ParishCare” policy are here.
