- Once you get to know a vendor, it is comfortable to stay with that company indefinitely. They know the building and the equipment and the church knows the service tech. However, best practices are to bid out your contracts every 3 to 5 years. This includes EVERYTHING from the food supplier, elevator maintenance, electrician, plumber, dumpster, commercial property insurance, copiers, postage meter, phone service, financial audit, custodian supplies, etc.
- Some companies are so hungry they’ll cut prices to get enough business to keep their employees busy (so they don’t have to lay off anyone). They know they won’t make a profit but they will also retain good talent and they know they’ll still make a profit. Some companies are willing to do anything just to keep good customers which could mean even revamping a contract halfway through the term. In every instance, insist that the savings not affect the quality of service.
- One case in particular: building insurance
- First, ensure that you have the proper valuation on your building and contents. Never be over or under insured or you’ll be paying too much or not have sufficient coverage. An appraisal may cost a few thousand dollars every ten years or so but it can save you tens of thousands in premiums.
- Get the right kind of coverage for your operations specifically for child abuse, owned & non-owned vehicles, umbrella coverage, and employment practices. When looking at how much coverage to get, think about what you would do if you were starting anew today versus recreating a building that was built by a prior generation for the needs of that era.
- Get rid of coverages that you don’t need including terrorism insurance which is automatically charged but is unnecessary due to the limitations Congress imposed on it. Seriously, remove the terrorism insurance coverage and save money.
- Get at least three bids from companies that specialize in church insurance. Some national insurance companies do not understand the particular needs of churches.
Lead On!
Steve
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