Q: What should ministry leaders know about contracts?

A: Ministry leaders should review the rights and responsibilities of the ministry in any contract.

Ministries have a significant opportunity to control risk when they enter into contracts. Taking a proactive approach to managing legal risk when contracting helps ministry leaders to be good stewards of the resources entrusted to them.

Key Contract Components

Ministry leaders should be familiar with the rights and responsibilities of the ministry in any potential contract. They should also be familiar with basic contract terminology. Key contract components that have an impact on a ministry include:

  • Performance dates
  • Insurance requirements
  • Hold Harmless and Indemnity clauses
  • Waiver of Subrogation
  • Warranties
  • Default/termination clause

It’s important that ministry leaders have an attorney review any contract before they sign it. The assistance of a competent insurance agent is also valuable, because contracts often have an impact on insurance coverage.

Recommended Resources

If you found this information helpful, you might be interested in these other resources from Brotherhood Mutual:

*Important information: Brotherhood Mutual is pleased to provide Legal Assist as a complimentary resource. The services we offer through Legal Assist are intended to provide general legal information to our current and prospective policyholders.

The information we provide is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. Accordingly, no attorney/client relationship is created through this process, and no legal advice will be provided. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.