The new era of faith-based risks you can’t afford to ignore

The new era of faith-based risks you can’t afford to ignore

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2026 January 27

Faith-based organisations, such as churches and synagogues, have never faced such a complex array of risks.

From arson attacks to high profile media scandals, and fraudulent activity, we know that no Christian fellowship and Mission Society is immune - even in New Zealand.

This can be quite daunting, especially trying to figure out what cover you need for all the different risks you may face. Here we have set out some key areas of risk and a few things to think about when next discussing your insurance with your broker.

Property risks

As you know, a place of worship is not just a building. It is a sanctuary for your community.

If this is damaged due to flood, an earthquake, or fire, you want to get it repaired or rebuilt as soon as practically possible to ensure you can continue to bring your fellowship together.

Material damage insurance protects key buildings you own against such events. In addition to your main building this may include rental properties, community centres, or your leader’s manse/home. You will of course want to have contents insurance to protect your valuable possessions within those buildings.

We also recommend Business Interruption insurance, which helps put you back in the same position you were in prior to a major loss. This can include cover for items such as -

  • The loss of tithes and offerings
  • Loss of rents
  • Loss of wages
  • Additional increased costs of working
  • Rewriting of records
  • Claim preparation costs 

People risks

Regardless of whether you have paid employees or volunteers, there are several people-related risks you can encounter in the day-to-day running of your organisation. Examples include –

  • Theft by employed staff or volunteers.
  • Employment claims eg wrongful dismissal or discrimination.
  • Breaching a duty of care for children and vulnerable adults.
  • Failing to comply with statutory and legal obligations such as health & safety (H&S) and the Incorporated Societies Act.
  • Reputational risks related to employee or volunteer actions.

To help cover these risks you need Liability insurance. There are many different types of liability protection such as statutory liability, employment disputes liability, professional indemnity, and trustees’ liability. Your insurance broker will advise you on what cover you need based on the requirements of your organisation. For example, some faith-based organisations will not just have a place of worship but may also operate schools, bible colleges, daycares, or even bookshops.

Travel & medical risks

From time-to time, faith-based organisations may lead teams on a mission to support important projects overseas.

To ensure any unexpected events such as flight disruptions, lost luggage, or medical emergencies are covered you will need to arrange comprehensive travel policies to cover these eventualities on an annual or per trip basis.

Some organisations will even have missionaries living overseas for an extended period. These people require expat cover to ensure they can get the appropriate medical care, and even evacuation if needed, while they are away from home.

Need advice?

If you need help navigating these complex issues please get in touch. For a no obligation conversation contact –

Keith Thomas

021 449 321         keith.thomas@icib.co.nz