H E L P I N G L E A D E R S B E C O M E B E T T E R S T E W A R D S .

Presented by: The National Catholic Risk Retention Group, Inc.

VOL.

CHURCH EXECUTIVE • N E V E R A G A I N : B E YO N D I N S U R A N C E • V O L U M E 22 churchexecutive.com

N E V E R A G A I N : B E YO N D I N S U R A N C E • V O L U M E 2 • CHURCH EXECUTIVE 3churchexecutive.com

Table of ContentsTHE MOST EXPENSIVE FORM OF LABOR — VOLUNTEER LABOR 4At “first blush,” an offer of volunteered labor can appear to be an opportunity to accomplish needed maintenance, upkeep or improvements in the most cost-effective manner — usually (though not always) entailing only reimbursement for supplies and maybe equipment. What could represent better stewardship than to enhance church physical resources with a minimal outlay of the congregation’s relatively scarce financial resources? In such circumstances, the temptation to pursue this course of action is great — but the actual outcome is often negative and occasionally tragic.

By Michael J. Bemi

WANT TO MOVE “BEYOND INSURANCE”? BEGIN AT THE BEGINNING! 5You probably noticed that this new series of articles has been retitled to Never Again: Beyond Insurance. But, how does a church organization get “beyond insurance” — and should it even try?

By Michael J. Bemi

DON’T TOUCH — OR YOU MIGHT GET BURNED! 6In our last article, we together began our journey to move “beyond insurance.” We then examined the first step in that process: risk identification, analysis and evaluation.

Now, we undertake the next step in our journey: risk avoidance.

By Michael J. BemiDownload the Never Again: Volume 1 eBook

Get the WHOLE Story!

H E L P I N G L E A D E R S B E C O M E B E T T E R S T E W A R D S .

Presented by: The National Catholic

Risk Retention Group, Inc.

NEVER AGAIN

CHURCH EXECUTIVE • N E V E R A G A I N : B E YO N D I N S U R A N C E • V O L U M E 24 churchexecutive.com

NEVER AGAIN:BEYOND INSURANCE

Not infrequently, pastors and their parish / congregational administrators, board and / or committee members are inclined to avail themselves of “donated” labor in the form of volunteers who purport to have the appropriate experience, expertise and equipment required to perform some necessary project work on or within parish buildings.

At “first blush,” such an offer of volunteered labor can appear to be an opportunity to accomplish needed maintenance, upkeep or improvements in the most cost-effective manner – usually (though not always) entailing only reimbursement for supplies and maybe equipment. What could represent better stewardship than to enhance church physical resources with a minimal outlay of the congregation’s relatively scarce financial resources? In such circumstances, the temptation to pursue this course of action is great – but the actual outcome is often negative and occasionally tragic.

It really can (and does) happenSome actual examples will demonstrate that “taking advantage

of” volunteer labor often represents the worst – rather than the best – stewardship.

Consider: The church roof was leaking. Following visual inspection with binoculars, a member of the congregation with years of experience as a roofer suggested that the likely “culprit” was a portion of raised flashing, most probably damaged in a recent severe hail storm. The pastor and board were grateful for this gentleman’s offer of free labor to effect what he had described to them as a simple repair.

Sadly, in his visual inspection, he failed to note a few loose roof tiles. Upon traversing the roof to repair the flashing, these tiles separated and dropped the man to the ground. He landed on his feet, crushing his heels, ankles and lower leg bones. His medical coverage was insufficient to cover the many thousands of dollars of necessary emergency care, surgeries and rehabilitation, and he was forced to sue the parish for damages to cover these unreimbursed medical expenses.

Additionally, his ankles had to be surgically fused, which prohibited him from ever again working as a roofer – his family’s sole source of income.

Consider: A long-standing congregation member who was an HVAC (heating, ventilation and air conditioning) expert agreed to replace two

air-conditioning units on the parish school’s roof. Just as in the prior example, the pastor and board were grateful and relieved that they would only have to pay for the air-conditioning units and not for any work.

The expert brought his less-experienced assistant along on a weekend to accomplish this task. Note that the assistant was not going to receive any compensation; he was simply going to be able to “take advantage” of a new work experience, outside of the stress of a normal workday.

The assistant improperly secured some critical rigging, causing one of the units to fall from a scaffold onto the head of the expert below. After weeks in a coma and months of treatment and rehabilitation, it was clear that this poor man would never again be the same. Litigation against the parish continues to this day.

Look beyond the surface appealOften, donated labor produces a less than truly satisfactory result, while

also exposing the congregation to extensive costs never contemplated. Even worse, the pastor, board and congregation must live with the guilt

of being associated with irreversible tragedies of pain and suffering like those recounted here.

Before engaging volunteers in any activity that entails significant physical labor, the use of potentially dangerous tools and / or the existence of perilous working conditions (examples: activity above ground or floor level; involving lifting of heavy weighted objects; involving heavy machinery; using hazardous compounds or substances; working with electricity), the congregation is very well served to “shop around” for the best-priced proposal from a professional firm that has a great reputation, skilled staff, proper equipment, appropriate licenses / permits, professional certifications, high-quality insurance and a contract with terms that protect the congregation.

This is the best stewardship.

Michael J. Bemi is president & CEO of The National Catholic Risk Retention Group, Inc. (Lisle, IL) — a recognized leader in risk management. To learn more about available coverage — and to get valuable tools, facts and statistics — visit www.tncrrg.org

By Michael J. Bemi

The most expensive form of labor – volunteer labor

N E V E R A G A I N : B E YO N D I N S U R A N C E • V O L U M E 2 • CHURCH EXECUTIVE 5churchexecutive.com

NEVER AGAIN:BEYOND INSURANCE

Begin at the beginning!

Want to move “beyond insurance”?

By Michael J. Bemi

You probably noticed that this new series of articles has been retitled to Never Again: Beyond Insurance. But, how does a church organization get “beyond insurance” — and should it even try?

Let us first agree that insurance is critical for any organization that provides services to any community. However, it is actually designed as a “safety net” or “safety cushion” to protect us, our families and the organizations we work for (or are active with) from unforeseen, potentially devastating events that require financial outlays unaffordable for most individuals, families or organizations.

So, we all want — and need — that safety net. Even so, as people of faith, we are called to be the best stewards of all the

resources we have been blessed with. These include: • The people we serve • Those who assist with our ministries• Our physical assets (buildings, furniture, fixtures, equipment, vehicles

and so on)• Our financial assets (land, financial instruments, bequests, charitable

trusts, weekly contributions, etc.)

Now consider: Are we really being the best stewards we can be by simply purchasing insurance to protect us when something “goes wrong” involving our resources? As believers, are we not called to protect and nurture life; to not damage property of others; to not disrupt legitimate activities or undertakings of others?

If so, we need to move beyond just good insurance.

Where to startThere exists a theoretical and related practical risk management

framework to help us move “beyond insurance.” It follows a step-by-step process.

So, let’s begin at the beginning.

The process begins with Risk Identification, Analysis and Evaluation. I know — it sounds a bit foreboding, and perhaps also costly and very time-consuming. But it need not be any of those things.

The principle is simple: You need to work to develop a level of safety awareness and consciousness that is consistently employed by: (1) identifying and cataloging the resources / assets you have been blessed with; (2) considering how those resources are used; and (3) considering how the use of those resources in ministry could lead to, or be affected by, some loss scenario.

Some examples will demonstrate that this is not rocket science.For instance, I’m guessing you have a church and perhaps a school and a

parish center. Is there a process and a person (better yet, a group of people) responsible for regularly checking things such as: • Torn or loose carpeting?• Loose handrails on stairways?• Lighting that’s not functioning?• Door locks that aren’t working or are easily “jimmied”?• Chipped or crumbling entry sidewalks or stairs?• Potholes in the parking lot?• Lack of ABC fire extinguishers or extinguishers not currently tagged

for operability?• Non-functioning fire / burglar alarms?• Exit signs that are not functioning or exits not posted?• Electrical outlets that are overloaded?• Rooms or compartments containing valuable items that are left open,

unlocked or unattended?• No procedure for controlling admission of visitors/guests?• No emergency contact plan and posted instructions?

Do your facilities have evacuation plans that are posted and practiced?

Do you have vehicles? Are they regularly and properly maintained? Do you restrict who may drive them? Are your approved drivers properly licensed and trained? Do you obtain annual motor vehicle reports on your drivers? Is there a protocol that defines allowable vehicle use?

Regarding your ministries, do you consider not only how they will benefit people, but also the many ways in which people could be inadvertently — or purposefully — injured or damaged in the performance of these ministries, if you do not properly control and direct who performs them and how they are (and are not) to be performed?

Two critical things to note: (1) You can get a lot of free help with these matters from your insurance

broker or insurance carriers or third-party administrator; and (2) You need to make these matters a regular, standardized, scheduled

process, with identified individuals responsible.

So, now you know where to begin!

Michael J. Bemi is president & CEO of The National Catholic Risk Retention Group, Inc. (Lisle, IL) — a recognized leader in risk management. To learn more about available coverage — and to get valuable tools, facts and statistics — visit www.tncrrg.org

CHURCH EXECUTIVE • N E V E R A G A I N : B E YO N D I N S U R A N C E • V O L U M E 26 churchexecutive.com

NEVER AGAIN:BEYOND INSURANCE

Don’t touch — or you might get burned!By Michael J. Bemi

In our last article, we together began our journey to move “beyond insurance.” We then examined the first step in that process: risk identification, analysis and evaluation.

Now, we undertake the next step in our journey: risk avoidance.

To properly consider this step in the process, we have to acknowledge a very important reality: namely, that — as people of faith and followers of the Lord, we believe that we are called (indeed, compelled) to do ministry. This ministerial phenomenon would be nothing other than wonderful in a perfect world where justice, fairness, righteousness, compassion and consideration for your fellow humans prevailed. We all know that this world is not that and will never be, until the Lord returns and sets it right.

In this world, you need to understand that the performance of ministry creates risk for the Church. You next need to understand and recognize that risk entails various costs. These costs are multifarious, but certainly include: emotional anguish and distress; potential bodily injury (and perhaps even death); significant liability with its attendant substantial defense costs; destruction of personal property, vehicles or buildings; damage to the Church’s reputation; and disruption or destruction of certain Church operations and activities.

Finally, now that we recognize that ministry entails risk, and that risk can be extremely costly in a negative sense, we must confront and accept the fact that we are called to be the best stewards of the resources we have been blessed with — and that means we must make choices to undertake (or not) specific ministries.

Some examples will demonstrate the point.

Scenario #1: Your charitable outreach division is contacted by the state. It would like to pay your church to convert one of your unused buildings for use as a halfway house for paroled convicts.

The contract would include the costs of renovation, provisions for the men, and the salary expenses for three church representatives to manage the facility. So far, it sounds like a great ministerial opportunity to help rehabilitate some men and restore them to society.

Then, you learn the rest. These are all “hard-timers” and very serious felons whose crimes

include murder, rape and pedophilia. There will be an average of eight to 10 residents at any time. Your three employees will be just enough to staff revolving eight-hour shifts, one person at a time — supervising up to 10 men, alone. Your unused building is less than two blocks from a local

public grade school. The state wants your church to assume all liability for anything that might “go wrong.”

Remember those risk costs? Unless you can get the state to contractually share responsibility, to

increase the contract value so that you can be assured of two church staff representatives on each shift, and to negotiate at least some limited right of placement refusal, this is a risk you should avoid. You’ve got it: risk avoidance!

Scenario #2: Your church carnival — a local community summer favorite and opportunity for outreach, plus a successful revenue generator for your church — is coming up. The church council suggests something new: a “bounce house” for the enjoyment of your littlest congregants and guests.

Aware of some recent issues with these, you contact the most highly regarded amusement operator in the city. Here’s their deal: they will complete all set-up — done with only the finest equipment and to the highest standards — but you must then appoint a “maintenance supervisor” who they will instruct on how to check the rigging over the four-day duration of your carnival.

And, by the way, your church is completely responsible for the rigging throughout this time period.

Here is yet another risk (the “bounce house,” not the carnival) you are likely best served to simply avoid.

Being the best stewards we can be demands some tough decisions. One of these is to avoid pursuing a ministry simply because of the risks involved.

Michael J. Bemi is president & CEO of The National Catholic Risk Retention Group, Inc. (Lisle, IL) — a recognized leader in risk management. To learn more about available coverage — and to get valuable tools, facts and statistics — visit www.tncrrg.org.