CHAPTER 9
Administering Risk Management
“A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.” PROVERBS 22:3 NIV
Few passages of Scripture are repeated verbatim, but the verse quoted above is found both in Prov 22:3 and in 27:12. Taylor, in his Living Bible translation, renders the verse, “A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences.” Risk management is the scheme the prudent administrator takes to foresee dangers in the environment of the church or organization and the actions taken to prevent them or address the consequences in case they occur. In America today, and throughout the world for that matter, those activities of preparedness are becoming essential elements of every organization, religious and nonreligious.
On a pleasant Wednesday night in September of 1999 as I was driving home, a speeding police car passed me—lights flashing, siren blasting. Within a block another police car passed, and before I could turn the corner to the subdivision I lived in, an ambulance screamed by headed in the direction of the two police cars. As I was pulling into my driveway, an announcer on the Christian radio station I was tuned into reported that a shooting had occurred in a Fort Worth church service and that we should be in prayer for that situation.
As I got out of my vehicle, I looked to the north toward the interstate and noted that a police helicopter and a news media helicopter were hovering. My initial thought was that an accident had happened on the interstate and had caused all the commotion. When I got inside my wife told me that a gunman had attacked some youth at Wedgwood Church. The reason for all the sirens, lights, helicopters, and such began to click in my mind. As we listened to both the TV and Christian radio stations, it became apparent that a serious, deadly event had happened.
Wedgwood Baptist Church was quite a popular church in our community. Many of the students I had at the seminary in Fort Worth were members and or
were on staff there. I received a call in about an hour from one of my doctoral students who said that he and his family were safe, but that he knew of at least a couple of our students who had been shot but that he did not know their condition. The news media mentioned several names that evening; one in particular interested me because he was to be in my class the next morning. Others were staff members who were in the doctoral program I headed. Needless to say, we prayed all evening and stay glued to the TV to gather what information we could. I received calls from time to time from individuals and had pretty much determined that Jeff, my student, and others who were students had been shot. Some reported seeing them dead, but others said they had been taken to a hospital.
The next morning at my 8:00 o’clock class Jeff was not in his usual seat. I told the class we needed to pray. I told them I had heard that he was dead but that another person had reported Jeff had been taken by ambulance to the hospital. We prayed. The next hour in another class I continued the prayer time for the situation and families involved at Wedgwood. I remember looking out into the classroom at one of my favorite students, and she was just staring, as though she was not there. To this day I haven’t forgotten her look. What I learned later that morning was that this beautiful young woman had been sitting on the couch in the church entrance talking with her best friend when the gunman walked up and killed the friend, right before her eyes.
My student Jeff was the first person shot—as a church staff member, he had approached the individual to ask him to put out his cigarette before entering the church. Kevin, another student and the church counselor, was shot in the back as he ran to call for the police. The rest of this book could be filled with stories of Wedgwood. What happened at Wedgwood was not supposed to happen—not in America, not in a church, a sanctuary of peace and safety! And yet it did. It had happened before and has happened since.
Today pastors, administrators, elders and deacons, committees, and other leaders in the organization must consider the facets of risk management and take the precautions necessary to address those issues. Gone are the days of the open church with no locks, no barriers, and no restrictions. And yet the church or religious nonprofit organization must wrestle with the desire to be open to the community they wish to serve while at the same time demonstrate prudent guard.
One is reminded of the story of the rebuilding of Jerusalem as told in Nehemiah 4. The threat of an attack is given in the enemy’s words: “They won’t know or see anything until we’re among them and can kill them and stop the work” (Neh 4:11). Nehemiah’s immediate response is found in v. 13: “So I stationed [people] behind the lowest sections of the wall, at the vulnerable areas. I stationed them by families with their swords, spears, and bows.” The long-term solution is found in vv. 16–18: “From that day on, half of my men did the work while the other half held spears, shields, bows, and armor. The officers supported all the people of Judah, who were rebuilding the wall. The laborers who carried the loads worked with one hand and held a weapon with the other. Each of the builders had his sword strapped around his waist while he was building, and the trumpeter was beside me.”
While we must continue to do our God-ordained work, we have entered a day when we must develop the vigilance of Nehemiah. In the past, churches were not robbed or vandalized. Religious structures were considered sanctuaries of peace and the values of the religious group respected. While not always right, churches were given latitude with regard to tort action and lawsuits when accidents or unfortunate events occurred. Churches were not bound by many laws ascribed to other elements of the public. Those days are gone.
For the past decade the most popular seminars at national bar association meetings has been how to successfully sue churches and nonprofit organizations. Numerous law schools across the nation have courses in tort action against the religious or nonprofit organization. Laws have included the church and nonprofit in compliance provisions, and many state and local municipal governments demand inspections and validation of compliance in the areas of safety, security, and common protection. In addition to that, most insurance carriers that provide coverage to churches and nonprofit organizations require their clients to comply with a litany of numerous issues to prevent the carrier from having to deal with costly claim action.
This chapter will deal with risk management in three venues: safety, security, and insurance. Additionally, in subsequent chapters that deal with administrative issues that must be considered in the program ministries and activities of the church or organization, comments will be included for each that relates protection that the risk management program will provide.
Safety
Safety can be described in its foundational base as “common horse sense.” A person doesn’t intentionally stick his hand in a fire. Why? Because he knows it will burn it. If you know fire burns, then avoid fires. That is simple.
In many respects, churches are an accident waiting to happen. A few years ago when I was administrator in a church in Oklahoma, an incident happened in the church that brought this fact to my sudden attention. One morning after the worship service, as we were closing down the area, we tried to hurry along a few members who were still in the front foyer talking. Their children were with them. One of the youngsters, also impatiently wanting his parents to get on with it, was in the doorway of the church. He was using his fanny to swing open the glass doors. He would hit it, it swung open, and then as it closed, he caught
it again and sent it back on its way. Suddenly there was a loud pop, and the child was on the floor in a pile of glass slivers with a long shard planted deeply in his back. The door had been placed in resonance with his swinging action and then broke apart. We called emergency response personnel, and the child was taken to the emergency room. Fortunately the glass sliver had missed organs and major arteries. Upon investigating the accident, we discovered the glass doors were plate glass but not safety glass. Code requires safety glass because it shatters into tiny, nonslivering pieces. Fortunately the child recovered with only an interesting scar, but it could have been worse. With the assistance of our insurance agent, the property committee surveyed all the doors and ground-floor windows of the church. We found that more than half did not meet code by having safety or laminated glass. Over time we replaced all those doors and windowpanes.
In the church facility, many individuals pass through each week; our job is to make that passage safe for them. From nonskid surfaces to removal of trip hazards, from repairing electrical cords to installing ground-fault outlets, from ice removal to germ removal, we must be vigilant to provide a safe environment for the individuals who attend. That is your job as church administrator. Let’s consider some issues.
Code Compliance
When plans are drawn for a church facility, the architect or engineer must be aware of both building codes for structural and engineering safety; but they must also be familiar with and comply with safety codes. All municipalities use the National Fire Protection Association’s Life Safety Code 101. This code defines how doors are to open, how many feet to have from a doorway to exterior entrance for children during an escape, how many people can safely occupy a room, how many and where should fire exit signs be placed, what spaces need to have sprinkler systems, and a myriad of other safety issues. Copies of the publication may be found online, in a public library, or at the local fire inspector’s office. The church will be bound by code requirements by both fire marshals and municipal building inspectors.
Many church facilities do not meet safety code requirements. A term that is often used is that the facility is “grandfathered” under older code provisions, and the church or organization does not have to meet the current restrictions. Sadly that is the same stupid logic of having a tire on your car that has bald spots and not replacing the tire because other parts of the tire have some rubber still on it. You are driving on a dangerous tire!
Let’s say that in an old part of your church building you have an electrical service that is seriously underrated. In a new section, your electrical service is to code. Guess how much of your church burns down when the old service shorts out and causes a fire. The entire facility! Now when you recently put the service in to the newer part of the building, you chose to not upgrade the older service because it was grandfathered under an older code that allowed a less-than-adequate service. You chose poorly. Fortunately most municipal building codes will prevent you from having contiguous inadequate code compliance. That same protection is often not afforded to rural areas where codes do not exist.
How do you find out about these codes and restrictions? Of course your local municipal, county, or state code enforcement section will have a world of information that will provide you assistance. However, unless you are a builder or some other related tradesman, reading and understanding these code requirements are arduous and often confusing. There are other sources; your architect or builder must know these codes to be licensed. They should not allow you to build an unsafe facility. Another valuable resource will be your insurance agent. Most major insurance companies provide a service to their clients that assist them in ensuring their facility is safe and secure. After all, they want to help you not to have claims, which cost them money. Sometimes the assistance comes from the agent themselves, an underwriter, or some larger groups provide inspectors. These individuals are trained to identify and suggest corrections to unsafe conditions in a facility.
One other option will be to allow municipal inspectors to evaluate your facility. These types of inspections have been alluded to in this book so far. Fire marshal inspectors, code compliance officers, and professional safety inspectors all are available in most areas of the country. An admonition about using these types of inspections: if they find something wrong, then you are beholden to correct the problem. Some types of violations could shut your facility down until corrected. For example, a leaking gas line, exposed wiring systems, building portions that are ready to collapse are things an inspector would deem as too hazardous to continue to use the space until corrected; and the vast majority have the authority to close you down code requirements are met.
OSHA Safe Working Environment Law of 1986
This law requires employers to provide a safe working environment for their employees. It also requires manufactures of products that poise a potential hazard to a human to identify that hazard and provide instruction how to prevent danger in use and to react in the event the hazard occurs. It requires posting of safety and warning information and provision of safety equipment and clothing as well as defining safe operations. It covers everything from climbing to chemicals, from lighting to ladders. Churches are not exempt from the law.
But what if your church does not hire sufficient numbers of employees to be covered under the law? The intent of the law is that an employer should provide a safe working environment for their employees, and that is how the law is being interpreted. For example, a small southern church had minimal janitorial staff. One day a janitor was overcome by chemical fumes in the cleaning closet and passed out. When he was found, he had died from the concentration of fumes. His family sued the church for not providing a safe working environment. The defense lawyer argued that the church did not have sufficient numbers of employees for the OSHA law to apply. But even if it did, the church had posted the necessary manufacturer’s safety data sheets for the chemicals that were in the closet. The church lost, however, because the employee was Hispanic and could not read the safety data sheets that were in English only. The civil court held that the church was to
provide a safe working environment for its employees. That case became a precedent for numerous other law suits that included churches and other nonprofit organizations.
If the safety data sheet says wear gloves and eye protection when handling a particular type of chemical, the employer has to provide—and should enforce the use of—the safety equipment. The same requirement relates to other equipment employees use. Kitchen equipment, lawn and gardening tools and implements, ladders, office equipment, and so forth should be of the quality and maintained status that they can be used safely as well as effectively.
Lighting
While one may not usually think of lighting as a safety feature of a facility, it most certainly enhances safety. Who has not walked into a doorjamb or a wall or stumbled over an object in a darkened room or hall. But the space does not have to be dark for it to be an unsafe space. Insurance companies are beginning to assess premium increases for clients who do not provide a safely lit environment. For example, they require a two-candlepower minimum in parking lots for someone to move from his vehicle to the facility. They will designate a 10-candlepower light level at entrances exterior to the building and the same intensity just inside a foyer. Inside, safety code compliance will require that battery-powered emergency lighting and exit lighting systems be in place for all large community spaces, hallways, and stairwells. Architects should provide and code compliance inspectors will insist upon either ambient or artificial lighting in all enclosed spaces where personnel movement is expected. This includes hallways, foyers, toilets, and other common spaces. Here’s a rule of thumb: take your Bible into a space or out into the parking lot. If you can read it at normal reading distance, then you have adequate light for safe movement.
Responding to Emergencies
In the wake of the events of Wedgwood and via the experience of accidents on premise, churches are beginning to form emergency reaction teams (ERT).
The ERTs are ministry teams made up of volunteers who are trained to respond to emergency situations—from intrusion to accident, from health emergency to crises. These teams provide immediate assistance until professional, municipal emergency response personnel (police, fire, and ambulance) can respond.
One evening my wife and I were visiting a church where I was providing consultant services. We noted a small commotion in the left side of the sanctuary. The pastor asked the church to pause and be in prayer for the situation. Soon an individual was carried out of the sanctuary on a stretcher, and the service resumed. I discovered later that the individual had suffered a heart attack and the church’s ERT had taken care of the situation. They had a signal for summoning them, a meeting place where supplies were provided, and a system of communication with responding municipal personnel. On that team was a nurse and also a fire department paramedic, who had administered assistance and took the person to a designated church entrance at which a local hospital’s ambulance met them. Because of their quick action the individual survived. I was impressed!
Some guidelines need to be established if the church or organization plans to provide this service:
1.
This needs to be a ministry team activity. The church cannot hire a team; it must be volunteer. As an administrator, approach an individual or individuals about their organizing and servicing this activity as a ministry. Their talents and gifts are being used for the good of the body—that is biblical. This group must be trained to do this ministry. That will take a lot of dedication, interest, and sense they are serving the church or organization.
2.
This must be a trained group of individuals. Nothing is more dangerous than a poorly executed act of assistance. If for no other reason than the group is acting in the church on behalf of the church, the church is liable for poorly provided emergency care. Training must be inherent and ongoing. A church or organization should not consider providing this group unless two or more individuals are trained to carry out the necessary functions.
3.
Close coordination should exist with local emergency providers. These groups become trainers, support personnel, and sometimes potential members. Additionally, just as important as the fire department knowing where the readout board for a fire alarm system is located, a municipal rescue squad, paramedic, or ambulance service needs to know where to respond when called. Sometimes this can be standardized by working with small community groups. In most cases it needs to be part of the reporting system that is discussed in the next bullet.
4.
There needs to be an organization, a process, and a procedure for mobilizing the group. Provide an announcement or paging system. This may be as simple as a Sunday school–ending time bell, providing a pager, or a phone-tree call to a cell phone. Establish a meeting place from which to respond to an emergency, a meeting place that includes certain equipment and communication devices. A delegated individual should establish and carry out the dialogue with a 911 or other emergency dispatcher. With the popularity of the mobile telephone, that person should have a check list that he carries with him to ensure the dispatcher is receiving all necessary information. And some form of record of the event should be provided to personnel at a hospital or other care facility to assist in determining what has happened up to that moment.
5.
There should be necessary equipment provided to carry out the emergency. A couple of words of warning: first, the ERT is a mediatory source of assistance, and it should not be considered a terminal assistance provider; second, no equipment should be provided unless personnel have been fully trained to safely use it. Defibrillators, respirators, and other emergency equipment are popular today but can be dangerous to the person if not used properly. Provide equipment only to the level of training of the personnel who will respond.
A final word about safety. Safety should be the concern of the church or organization administrator or a designated committee or group. Sadly, too often safety is an issue only when it is needed—usually after the fact. It should be included as a responsibility of the job description of an administrator; it should be included in the responsibilities of a facilities committee. It should be an important part of any daily, weekly, annual, or other periodic inspection of the church facilities. A designated person, or a few persons, should be inspecting for and responding to safety issues in the church or institution.
Security
In an article that appeared in
Your Church magazine in 2000, I asked a rhetorical question relating to the events that had happened the year before at Wedgwood Baptist Church. “Must we train ushers to watch for armed intruders? Should attendants who patrol the parking lot to prevent vandalism also watch for unsavory characters who shouldn’t be allowed into the church?”
1
As the events of the World Trade Center tragedy on September 11, 2001, shattered the confidence in the security of America, the attack on youth at Wedgwood the year earlier shattered the confidence in security in houses of worship. Even before Wedgwood, however, churches were beginning to become aware of the need to provide a secure working and worship environment.
Many in my generation grew up in a community where individuals rarely locked their doors. The churches we attended were always open, even at night. A half century later, we now live in a lockdown society. That same hometown church now has an electronic latch and intercom system to gain entrance; all other doors are locked. Security specialists tell us that churches are security risks because of the inherent nature of openness of the church facility. Surprisingly enough, however, the most vulnerable time for a church facility is Sunday afternoon—it’s open but “nobody is home.” Below are some security issues the church administrator should consider.
Lighting
Evil loves darkness. Scripture alludes to a thief who comes in the darkness of night. While we can’t keep the sun up for 24 hours, we can light our facilities. We have already mentioned exterior lighting from a safety perspective, and from a security perspective it is just as critical.
A few years back, the church my family and I attended was having trouble with transients breaking into the church and setting up housekeeping. They would raid the kitchen and then choose a ground-floor room, often one of our children’s department rooms, and spend the evening. As a member of the church’s building committee, I mentioned this problem to my son who was the K-9 officer for the local law enforcement agency. He suggested that one evening we let Breaston (the 140-pound police dog) wander through the building to see what would happen. Imagine the surprise of our visitors when Breaston walked in on their card party that evening. It cost the church a window because the trespassers jumped out without bothering to open it. Apparently, however, word got out because we didn’t have that trouble for a long time afterward.
Time passed, and now I am the administrator. One evening one of our ministers was working late, and he heard sounds of people moving about. When he related this to me the next day, he also added that he had heard this before. My son no longer had his dog, so I could not call on him for assistance as before. I asked the minister to call the police the next time he heard it. He did. The police came, but unlike their four-pawed officer earlier, they were reluctant to venture into the building in the dark. They did not know where the light switches were and did not want to move through the building in the dark.
From this we came up with two innovative solutions: Church access points (doors, windows, parking lots, foyers, etc.) had lights on them 24 hours a day. Sometimes God provided the light with sunlight; other times we provided artificial light. At every doorway entrance to the church, we had low-voltage fluorescent lighting to a minimum of 20 candlepower. Over the eaves of every exterior window at ground level, we provided 10 candlepower of down-lighting also on a low-voltage system. We then placed these lighting systems on a photocell energize mechanism one of the church’s electricians rigged up. In our parking lots the photocell system was preceded by a timer. Thus, from the moment a person left the church to the time he arrived to his vehicle in the parking lot, he was in light. The scheme for the parking lot follows below.
Alarm Systems
In addition to fire alarm systems to provide for the safety of the individuals in the church or institution facility, the church should have a security system that protects the most valuable assets of the church (electronics, files, media, offices, etc.). Alarm systems are useless unless there is an active response, whether the local police or a security agency. When assessing the need for an alarm system, consider what you want to protect. Global alarm systems, while cheaper, are not always the most effective.
There was a rural church that chose to install a system that used a central motion detector in the sanctuary and the hallway leading to the office and classrooms. It was hooked up to the county sheriff department for response. Each time the alarm went off, the pastor joined the deputy who responded to search the building. They never found anyone, and the alarm was reset. The rationale was that whoever was in the building left when the deputy drove up. In a couple months the church got a bill from the sheriff’s department for excessive responses. Seems like the county commissioners limited false-alarm responses to only two a month; after that a fee was charged. One evening soon after this, the pastor was working late and heard a sound in the hall. He stuck his head out the office door and saw a very large raccoon. The pastor chased him back to the hole through which he had entered. The next day a couple of men nailed a piece of sheet metal over the hole, and the false alarms (and excess response charges) stopped.
Determine what is of value in the church or organization facility that needs protection and then secure that with an alarm system—for example, storage closets that have expensive electronic sound and video equipment. Office spaces, especially those with computers and system equipment should be protected. Offices that have secure files such as financial and other records office should not only have a security system alarm but maybe also a security lock system for entry.
Whether the system is local or silent is another consideration. Visual or noise-making alarm systems inhibit or deter theft. Silent alarm systems try to catch the thief in the act. Neither system will prevent theft; they only slow it down. If the decision is to go with a cheaper local alarm system (one that excludes outside-source response), then make your deterrents obnoxious, such as loud alarms or bright lights. If your objective is to get a lower insurance rate, then you will have to go with a silent, outside-monitored response system that will probably cost you as much as the insurance premium you save.
While alarm systems are usually thought of as systems that are installed to detect intrusion or violation when no one is around, daytime security systems for the occupied workspace are becoming an absolute necessity in many regions of the country. A daytime alarm is a must when, for example, an academy, school, or child-care program is in the facility; when large unused spaces exist that cannot be or are not monitored by sight or locked to prevent entry; or when office spaces and their occupants are quite separated from one another. These alarms could include monitored TV and video systems as well as sensors and detectors.
Panic buttons should be installed at critical points in the church—nursery, offices, welcome centers, etc. These switches are connected to the church’s alarm system and provide an immediate local response to an emergency or danger. Place these switches where personnel are usually located or working so they may activate them without drawing attention. During the workday these alarms may be terminated in a manned space such as one that has security monitors a central employee is observing. If the church or organization does not have a monitored space, then the alarm should sound at the centrally monitored location for the general alarm system. In most communities the panic alarm can be connected directly to a local security provider or law enforcement agency.
Use Common Sense
A penny saved is often a penny burned. In many respects, security is only being careful. For centuries, security was not a matter of concern for the church or ministry organization. No one would dare steal from God. I remember my mother telling me that I should be careful of what I do and say in church because it is “God’s House,” implying that God is watching. Not enough mothers are telling their children to be careful of what they do. That attitude of disrespect for places of ministry is coupled with a church or ministry organization that trusts people, which have caused a significant increase in security breaches.
A few years ago we were visiting my son in Virginia and slept in an upstairs bedroom. My wife had left her purse on a table downstairs, in full view of anyone who looked in a window. They did and broke in and stole her purse. Today my wife does not leave it in open view; she takes her purse the bedroom and secures it. Why? Because of the tremendous hassle she went through to cancel checks and credit cards, renew her driver’s license, obtain another military ID, and other time-consuming tasks. It was a difficult lesson, but she learned from it. Remember, risk management is closing the barn door before the horse gets out. This means that churches and other organizations should take steps to be proactive in developing a security scheme. Here are some practical suggestions:
1.
Place metal-clad or solid doors on locations where security is an issue—or alarm the doors. If glass is used, it should be security glass—that is, of sufficient thickness to prevent entry by a blow—or have imbedded a security mesh or grid.
2.
Lock windows and doors. Law enforcement agencies state that many criminals walk through an open door in the majority of cases of vandalism or theft. Either the facility was not locked, or they gained entry before closing and carried out their vandalism or theft after hours. All areas of a facility that are not monitored should be secured.
3.
Place valuable equipment out of the sight of individuals who may pass by. Place electronic equipment in cabinets and consoles. Obviously computer systems should be in a locked and monitored/alarmed space.
4.
Never keep money on the premises. We addressed this issue in the financial chapter. Kitty and office funds should always be counted at the end of the day and placed in a secure, locked location. The concept should be, if they are going to steal it, they are going to have to work for it.
5.
Double and triple lock spaces. Fire safety codes will require you to have emergency exit through certain doors to your facility. In many doorways that are adjacent to unmonitored spaces but where doors exist for safety reasons, have hardware only on the inside. Entry from the outside would be only through a keyed deadbolt. Doors with panic bars that secure can also have deadbolts if those locks have a turn-latch exit on the inside. (Never place chains and padlocks on these types of doors. A slide bar double security could be purchased that can be quickly lifted to gain emergency exit.) Place your financial and membership records behind a triple security system: a keyed lock to the area, a numeric or card key secondary lock to enter room, and a locked cabinet for the equipment or files.
Numerous aids assist administrators to become security smart. Probably the best resource you have is the community relations representative of your local law enforcement agency. These men and women want to help you to prevent crime in your venue. Through the years I had several law enforcement officers in my church, and I frequently asked them to assist me in identifying and correcting problems. In addition to law enforcement personnel, your insurance agent is also interested in your church or organization being proactive in preventing security breaches. Most have brochures, videos, and other training aids. Some will visit your facility and walk through it with a security/property committee to help identify problem areas and make suggestions to prevent problems.
Establish Key Control
I told the story earlier where an inspector found several paper and other consumable items stored in one of our heating/cooling rooms. The following Sunday I took members of the property committee to the room to show them the problem. When we arrived, I remembered I had left the keys to the space in my desk drawer. I apologized and told the group I would be back in a minute. As I turned to go, someone said, “Never mind, Bob, I have a master key.” I soon discovered group members held more than one master key.
Who has a master key to your church? I would be willing to bet that more people than you want have master keys. When the problem was discussed with the leadership of our church, it was determined that the church would budget for and change the locking systems that existed. A professional locksmith was employed, and they worked out a strategic system of grouping similar entry needs into sets of locks. We dramatically reduced the number of master keys that were issued.
The church or nonprofit organization must establish a system whereby a person is issued a key by signature and a policy that states he is accountable for its use. Issue keys to persons only to the spaces they need access. When you can afford it, use electronic keys that can be changed when the space is compromised. With the advent of a variety of different types of electronic locking systems, it is not cost effective to consider installing them at primary doors. Whether keycard or touchpad, these systems allow an administrator to monitor access and to change entrance codes, often at a computer keyboard, as often as needed. Short-term access can be granted or specific area restrictions can be made at the time of issue.
Develop a Sense of Security
For decades the mind-set of most individuals in America had been one of a sense of security. Events such as those at Wedgwood Baptist Church in 1999 and the World Trade Center in 2001 changed all that. It is quite easy, however, to be lulled into a false sense of security, especially if the organization or institution has seemingly taken steps to ensure the security of the individuals involved. Make no question about it, security will not occur in the church or institution unless someone or a group of individuals makes it their responsibility to ensure it. More often that is the individual or group who are designated as the administrators of the church or organization.
In addition to an emergency reaction team, train staff, ushers, greeters, and others to be sensitive to needs of individuals during worship services. When I talked to my former student, Jeff Lasiter—the first person shot in the Wedgwood shooting—he said that in retrospect he should have known that the shooter was trouble. People have a sixth sense that tells them when something is wrong.
How do leadership or administrators develop in the organization a sense of security? Some ideas might include:
1.
The parking lot welcome ministry team also becomes a parking lot patrol and provides not only security to vehicles but protection to people. They are trained to observe unusual activity or persons. With a portable communication device, they can relay observations to a central reporting point.
2.
Deacons and other adults in the halls during services provide protection to children and workers alike. They become trained to observe who is in the area and to identify their legitimate reason for being there.
When we discuss the preschool and children ministry in the next chapter, it will be suggested that name tags and other forms of identification are necessary to ensure a secure environment. Church leadership should be particularly sensitive to critical areas where abuse can occur. Child care issues will be discussed in detail in chap. 12. These and other issues—such developing policies about sexual harassment, former abusers, and who can and cannot be around minors in church activities—are all steps that demonstrate a proactive approach on the part of the church or nonprofit organization to provide a secure work, worship, and ministry environment.
3.
Openness and visibility reduce the possibility that an individual can carry out clandestine activity. Windows into counseling rooms and children and youth rooms provide visual protection for both the client, parishioner, and leader.
4.
Develop an attitude of security by instructing and encouraging individuals to lock spaces when they are not in use if the space is usually locked. Provide security screens for computers. Require the use of passwords and change them often. Allow only authorized individuals into areas of sensitive information or where valuable commodities are stored. Develop a system of inventory control and accountability.
In many respects, security is a state of mind. The Scripture cited at the beginning of this chapter states that the careless individual pays for his indifference to caution. If a thief wants to steal from you, no security system yet devised will prevent it—it will slow down the process and become a hindrance, but it will not prevent it. So in many respects, security in the church or organization is placing roadblocks to illegal and inappropriate acts. The more cautious we are in protecting the individuals we serve and minister to the greater their sense of security for your church or organization.
Insurance
One Sunday evening about a half hour before the service, storm clouds gathered over the church for which I was the administrator. In central Oklahoma it is quite a common occurrence, but on this evening the warning sirens sounded. We went to the areas where Sunday evening programs were being held and asked everybody to go to the lower level of the educational building. In checking the security of the building, my son and I arrived in the sanctuary when hail about the size of baseballs started coming through the windows. Glass was flying everywhere, burying into the wooden pews. Hail came through with enough velocity to go across the 66 feet of the sanctuary’s width and bounce back into the center.
We rushed to pile pew pads on the new grand piano and then retreated to safety about the time the tornado passed overhead, sucking out stained-glass windows. Then came the heavy rain and floods that filled the entire lower level of our 52,000 ft
2 facility. When our insurance agent had finished the tally the next week, we had more than $97,000 in damage.
Almost the same day I received the check from the insurance company, we received a notification that our insurance had been cancelled. I was rather surprised; I had done my homework and our premiums for the last dozen years more than paid for the check they had just written. I contacted our agent, who said, “It’s not the amount of the claim that has caused the national office to order the cancellation; it’s the number of claims in the past five years you have had. You have filed more than a dozen claims for stolen electronic equipment.” It was then that I learned that state insurance regulators allow companies to cancel a policy if a client has greater than an average of one claim per year for a three-year period—regardless of premium paid and regardless of claim paid. To my surprise, and dismay, I discovered that our media committee had filed a claim every time a piece of equipment had been stolen, regardless of value. We paid a $200 deductible, and the insurance company forked over the rest—usually not even the amount of the monthly premium.
What began as a bad experience, however, turned out to be a great learning activity. I found a national insurance agency that concentrated on insuring churches and provided to their clients assistance in making the facility safe, secure, and protected. The agent Scott and I became good friends. He was unusual in that he set out to assist the church to understand the dynamics of insurance and how a client could dramatically reduce the costs for insurance while at the same time increase the level of protection and coverage.
There are several types of insurance that churches and nonprofit organizations should consider. Depending upon the programs and ministries that are carried out, these usually fall into one of four categories: (1) liability, (2) property, (3) financial bonds, and (4) worker’s compensation.
Liability
Let me return to chap. 3 to the section that discusses the constitution and bylaws. As I mentioned before in this book, historically legal authorities were reluctant to carry out any civil or criminal action against churches or its members. That reluctance does not exist today, and churches and nonprofits are having to take measures to protect themselves against legal activity. For example, the seminar “Keeping Your Church Out of Court” and printed materials offered by the Christian Life Commission and Baptist General Convention of Texas are highly popular meetings by leaders throughout the southwest. These valuable materials assist leadership in understanding the causes that often unwittingly draw them into legal problems. In these seminars and other related materials, one point is stressed: courts may still refuse to become involved in entanglements relating to the theology of a church but will readily accept issues of failure to abide by common and stated law with regard to personnel, finances, and property.
Whenever I am advising churches during the process of writing constitution and bylaws, I tell them that it is critical that they define their theology and spiritual philosophy for operation. This is especially necessary if the church doctrine and dogma are specific in certain areas:
The exclusive authority and power of a pastor, elder, or board.
The role of church discipline and how it is administered.
The issue of homosexuality.
The doctrine of sufficiency of Scripture in areas such as counseling, medical and health practices, and family discipline of a child.
The formal training and education of children.
Personal dress, speech, and demeanor.
Mandatory conciliation and arbitration in matters of church conflict.
Out of necessity these must be stated and justified from a biblical or denominational dogma perspective. Fortunately most denominational organizations provide resources for member churches. Independent or denominational churches who choose a more stringent (or liberal) interpretation, must have justifying statements in their constitution/bylaws in order to protect their U.S. Constitution and amendments rights of freedom of religious expression. Without these declarations, the church or nonprofit may become liable for legal action.
Liability insurance protects a church when actions or claims are made against the organization by an individual(s) who has received some form of physical, fiscal, or mental injury. Two types of injury may occur: (1) when the injury can be attributed to an individual who is responsible for his intentional actions and (2) when injury can be attributed to an individual because of negligence.
Usually in the first case, criminal action is taken; however, in both cases the church or institution may become liable. In all 50 states liability is allowed against the perpetrator of the injury; however, in cases deemed “personal frolic” on the part of the individual, the church or organization is usually dismissed from liability. Liability of the organization is limited based upon the circumstances that allowed the negligence by the church. Termed “vicarious liability” the church or organization may be liable if the person causing the injury was acting within the scope and course of church-authorized responsibilities. The church or institution will be evaluated based upon its administration of the person in three venues: (1) the hiring/assignment of the individual; (2) retention of the person, especially after discovery of poor or unlawful action; and (3) the negligence that occurs in the supervision of the person’s duties.
An example: A family sued a church for their child’s injury from sexual abuse. Apparently a Sunday school worker had taken the child home and molested the child. The family said that the church was liable because no screening was in place to indicate to the church (or the parent) that the teacher was a former child abuser. While the abuse occurred in the worker’s home, the relationship was established in the Sunday school classroom. It was brought out that the minister of education was aware that frequently there was only one adult in the classroom with no other supervision or observation. The parents won the case.
Churches and nonprofit organizations are liable for the protection and safety of all persons who come on their premises in three venues:
1.
Commercial general liability provides for protection whenever the church or organization is alleged to have caused bodily or property damage to a person, group of persons, or an entity in the course of its programs or activities.
2.
Vehicle coverage, often termed automobile insurance, is necessary even if the church or organization does not own or operate vehicles because the extent of the policy encompasses rented vehicles and volunteer or member additional coverage when their private vehicle is used for church or organization activities.
3.
Liability for the action of officers and leaders includes malpractice and/or omissions of service for individuals who provide professional services such as counseling. Another form of this insurance involves the financial activities of those who are involved in the direction of the fiscal management of the organization’s resources. Included in this is also directors and officers liability to protect those individuals who may be sued from within the organization for failure to make proper and required decisions or for making decisions that were deemed detrimental to the organization.
Property
This is insurance coverage that protects the church or organization’s physical assets, including the structures, equipment, and fixtures. The church or organization will be required to select from a list of causes of loss to determine their specific coverage. This format replaces the “all-risk” categories that existed in many coverage policies and has been provided to allow the client to select from types of coverage for those elements that are applicable to their situation. These policies usually are categorized as either:
1.
Basic cause of loss includes damage from “acts of nature” such as fire, lightning, wind, hail, smoke. It will also include human causes such as riot, civil violence, vandalism, malicious mischief, and vehicle or aircraft damage. Most basic cause of loss policies will include damage like sinkhole collapse, volcanic action (but not earthquake), and sprinkler damage.
2.
Broad cause of loss is a policy that includes the basic features plus physical loss for such items as limited glass breakage, snow or ice damage, falling objects and collapse, and water damage that is not flood related.
3.
Special cause of loss is issued to provide the most comprehensive coverage possible. Formerly called an all-risk policy, this policy will cover anything that happens unless specifically excluded. And that is the key issue the administrator must consider in this policy: what is excluded? Examples of common exclusions include war, radiation, insect infestation, biological infestation, movement of earth, and flood. Additionally, some states have allowed companies to limit the level of coverage to such action by nature as hail or storm.
4.
Additional specific cause of loss is coverage that is added to one of the three types of policies described above and provides loss protection for items that have been specifically eliminated or not covered by the policy—for example, earthquake and earth movement, major glass, and antiquities or historical elements such as a stained-glass window. By federal law flood insurance is only available via the National Flood Insurance Program administered by FEMA.
Administrators must ensure that the insurance selected adequately covers the loss incurred. Insurance companies are protected by requiring a client to provide a minimum of co-insurance to the level of 20 percent of the loss. This will require a choice between purchasing insurance that provides actual cash value (replacement cost less depreciation) or replacement cost basis that provides complete replacement without considering the depreciation that may have occurred or appreciation in cost of materials to rebuild the structure.
Suppose, for example, a church has a facility worth $1 million. They had chosen to insure it for $750,000. The sanctuary burned down and was a total loss of $500,000. Because the church had only replacement cost insurance, failing to insure to 80-percent minimum ($800,000), the insurance company provided only $468,750 of the half-million-dollar loss. If the church had selected an actual cash value policy, it would have been paid significantly less because depreciation would have been computed based upon age and condition of the sanctuary at the time of the loss. If the church had paid attention to the administration of the policy and increased the coverage by only $50,000 more, to meet the 80-percent minimum, the company would have paid the entire replacement costs. The astute administrator will pay close attention to any co-insurance clause in a property policy and make sure that the facility is covered to a minimum of that requirement. Most smart administrators will usually insure to a minimum of 10 percent over value or purchase an inflation guard clause to the policy to ensure the facility is always to the minimum of the co-insurance requirement of the policy.
Before leaving property insurance, a couple other items need mentioning. Administrators should determine if temporary use, new construction structures, remodeling, and other types of changes or facility-use considerations are included in the insurance. Secondly, administrators should determine how the policy premiums are calculated and how deductibles will affect the premium. In a section later in this chapter will be discussed numerous activities that the church or organization can undertake that will significantly lower premium costs by simply altering or modifying their structures.
Fiduciary Bonds
A third type of insurance is that which protects the fiscal assets of the church or organization. Often called fidelity bonds or employee dishonest bonds, these insurance policies indemnify the church or nonprofit from loss of property or assets through fraud, employee dishonesty, theft, or embezzlement. They may be focused on an individual or individuals such as a financial secretary, treasurer, or administrator; or they may be general in scope and provide blanket coverage to cover all employees or individuals who have access to the finances of the church or organization. While most bonds will be applicable to the employees or officers of an organization, specified board members, volunteers, or volunteer groups can be added as a rider to the policy.
The amount of the bond should be carefully assessed because the premium for the insurance is based upon that amount. Usually the amount of the bond will be limited to the maximum amount the individual or group may have access to through the course of normal business and between intervals of audit and/or report. Astute administrators will be aware that exclusion provisions may exist in the policy such as necessity of proof of loss via bonded individual, the level of investigation required for background investigation of individuals who have fiduciary responsibility, and the numbers of individuals who may be insured under the bond provision as well as the statute of limitations for discovery of loss.
Worker’s Compensation
A final category of insurance the church or organization may have to consider is that which is required by employment agencies in most states in America. While the provisions and requirements will vary from state, for all practical purposes employers must provide compensation for all injuries to personnel who are employed by that organization. This requirement applies regardless of the status (full time, part time) and the hours worked. This is a no-fault insurance provision whereby the employee does not have to prove liability of the employer and only that he was injured on the job. Benefits not only include payment of all medical costs but will compensate the employee for wages lost during the time he is out of work because of this injury.
Because worker’s compensation applies only to employees of the church or organization, volunteers are eliminated from the direct provisions of the process. A volunteer who is injured on the job may sue the church or organization if negligence on the part of the employer is proved. This suit will fall under the provisions of the employer’s liability insurance.
Insurance Administration
For the chartered and incorporated organization, insurance is a valuable administrative tool to protect the human, fiscal, and physical resources of the church or institution. As pointed out earlier in chap. 3, the unincorporated church or organization and its membership are equally liable for any legal or tort action against them. While insurance has been a matter of individual church attention in the past, government regulations have moved beyond worker’s compensation to mandate medical insurance for American workers.
You have heard the adage that an ounce of prevention is worth a pound of cure. For 22 years I served in the U.S. Navy and during that time America was involved in some sort of strife in various parts of the world. For the most part, our fleet “showed the flag,” a term used to let the world know that the U.S. had a strong military force and the rational for that force was to serve as a deterrent to any attacker. Political policy during that time was (and today is): you attack America and you will be dealt with in the severest of terms.
Wise risk management administrators are proactive. While seminars, organizations, and aids abound, it is only through a considered, common-sense approach to risk management activities that results will be achieved. Below are some suggestions that may spur some creative activity in your organization or church:
1.
Consolidate insurance. In the story related earlier of having to obtain new property (called “hazard” then) insurance after the storm, the insurance agent’s first suggestion was a business suggestion. Through the years the church had several insurance policies: hazard, worker’s compensation, transportation, counseling, etc. He suggested to the church that his company could handle all the policies in a consolidated package. The rational was attractive; it would save money. The reason is simple: when an insurance company writes a policy, a portion of the premium paid goes into a holding fund in which the company pays claims. A portion of the premium paid covers the administrative costs to the company to issue you a policy. If you consolidated the policies into a single holder, then the administrative costs would be dramatically reduced. Most major insurance carriers that deal routinely with churches and other nonprofit organizations provide such service. The church consolidated and cut premium costs nearly by 45 percent.
2.
Evaluate add-on riders. Insurance for antiques, the pastor’s/ministerial library, or other unique items are usually not in a general cause-of-loss policy and must be added. Some companies require additional riders to be written for counseling abuse, sexual abuse, child molestation, and other sensitive issues. Wise administrators will seriously consider who needs this protection and the limit of coverage to those individuals. Not all ministers have a valuable library, not all areas of the church have stained-glass windows, not all pastors counsel, and not everyone has access to children.
3.
Insure to replace. Unless otherwise specified, an item is insured to its value, which can be significantly less than what it would take to replace it. As discussed above, the church or organization will have to insure to within the required co-insurance limit required of the value of the total property. For churches that have a campus complex, the church should work with the insurance company and insure to the limit of an anticipated loss. For example, if the education building and sanctuary are separate buildings, then it might be cost advisable to insure only to the 80-percent limit of the total value of both properties, assuming both buildings will not be totally destroyed simultaneously. On the other hand, if the buildings are contiguous and the potential for a full wipe-out is there, insure to the co-insurance minimum so that the facilities will have 100-percent replacement. Additionally, because property insurance covers only the facility and the fixed portions of the building, always insure to replace fixtures, equipment, and other items that will allow the ministry to continue. And always insure valuables and antiquities to the extent of the appraised value.
4.
Cover the mess with an umbrella. Umbrella policies provide an insurer blanket coverage that extends beyond the limit of one or more policies. For instance, if your multielement insurance coverage provides a $1-million limit for liability in case of an auto accident, an umbrella policy of $2 million will provide additional coverage in case a judgment exceeds the $1 million of the auto policy. What an umbrella allows the church or organization to do is to possess reasonable policy limits and at the same time provide coverage in the event of a major disaster or judgment. Even though this will mean another policy, in the long run the agent will be able to easily demonstrate how such a strategy is a significant cost-reduction action.
5.
Improve your chances for a premium reduction. In the months following the tornado that destroyed portions of the church and the reconstruction afterward, I became a hero in our church—well, at least with the finance committee. As our new insurance agent was assessing the church for insurability, he told me that he would have to write the policy based upon the risk to the company in certain areas. He gave me an example. When we went into one of the heating/furnace rooms, the room had several items in storage—past musical dramas, literature that was not used, and so forth. “That is a fire hazard and increases your risk for fire in this area. Therefore I will have to evaluate you at a high risk for this area. Get rid of the flammable stuff and your risk is lowered and your premium will reflect that.” We did and saved money. Here are some other things that we did to reduce our level of risk—and save a bundle of money.
Remove flammable materials from stairwells and other places that do not have fire-protected (sprinkler) storage.
Add fire extinguishers so that a person does not have to move beyond 25 feet to grab one. Make sure fire extinguishers are tested annually. Make sure you have the right kind of fire extinguisher for the space.
Provide a fire/smoke detector in each room that will house children. Make sure there is a fire detector in the hallway.
Remove or trim bushes from near windows and doors. Add lighting that will illuminate all access points to the interior of the church.
Place windows in the doors to rooms that will be occupied by individuals 17 years or younger. In rooms where staff and volunteer counselors will meet in counseling or ministry and in areas where an individual may work alone, provide visual access at all times. This may be plate windows or all-glass doors.
Provide double-secured doors to all critical papers and documents. Make backup copies and store off-site, preferably in a bank vault. The second lock on a space in the finance office or records office should be an electronic combination lock that can be changed at a regular interval.
Make sure fire doors to hallways and stairwells are in operating condition and cannot be blocked open. Remove doorstops from them. Make sure the heat sensitive links in door-opening devices are functional.
Make sure all interior escape routes are marked and lighted with an emergency lighting system.
Have a “response” alarm system.
Ensure that all personnel who have access to children and youth areas have background checks, have received child abuse/molestation training, and comply with the two-person rule.
Remove, repair, or replace all trip or fall hazards such as handrails, carpet “bumps,” and hidden steps or ramps.
Test for the presence of lead and have certification of such testing in all areas where children will be present.
Institute a system for inspection and maintenance of equipment and fixtures of the church.
6.
Control claims. This section started with my sad story of insurance cancellation because we had had too many claims over a three-year period. The new insurance agent made quite an interesting suggestion. He said that we should increase our deductible for a claim. He would allow us to set deductibles for different sections of the policy. For instance, for fire, wind, rain, etc., we could set that at $2,500 but have a deductible of $500 for electronic or office equipment. He then suggested that we add a budget item for insurance claims of perhaps $5,000 from which we will pay any deductible amounts. If we don’t have claims during the year, we don’t spend the $5,000. To control claims, we set up a review board in our property committee that had to approve any claim. Once this policy was instituted we often found that it would be the decision of the subcommittee to not file a claim with the insurance company but instead make the replacement from the $5,000 insurance fund. After many years since that tornado event, the church is still with the same insurance carrier and still saving money.
Before closing the chapter, a federal laws needs to be mentioned: the Charitable Immunity and Liability Act of 1987 Volunteer Protection Act (42 U.S.C 14501) limits the extent of financial liability for volunteers and the organization’s officers, directors, and trustees when they are carrying out their actions in the course and scope of their duties or functions. It applies only to organizations that have liability coverage in effect. It does not protect willful or wanton negligence. Most states have similar laws that regulate the liability of volunteers but are often limited to protecting the volunteer, not the organization. A difference in many is that the volunteer becomes equally liable with the church for injury during the operation of a motor vehicle. For a successful tort against the volunteer, the victim must prove clear and convincing evidence that the action was caused by the willful, criminal misconduct or a conscious, flagrant indifference to the rights and safety of the individual harmed. These laws provide some tort protection to religious not-for-profit organizations while at the same time emphasizing the necessity of leaders to provide due diligence to adequate and appropriate safeguards.
Chapter Review
Administrators in any venue must be constantly attuned to the dynamics of risk management that address the safety and security of the individuals who participate in the activities of the church or organization. Additionally, the resources—physical as well as fiscal—must be afforded the level of protection to ensure the mission and purpose of the church or organization is sustained. While the reader was introduced to topics in the chapter in the three separate discussions of safety, security, and insurance, elements of risk management merge into a consistent pattern of concern and action. The reader should be able to:
Articulate the requirements to provide a safe environment for both the employee or visitor to the church or organization.
Identify the elements of a security system that provides both proactive actions to prevent breaches of security as well as actions that respond to emergencies or other situations requiring concerted action to protect property or sustain life.
Describe a program of insurance that addresses the principal areas of liability, property damage, and fiscal and employee protection.