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A congregation that owns an old building, runs on volunteers and opens its doors several times a week needs church insurance written for that, and so do charities that run halls, op shops or camps. Heritage churches often cost more to repair than a modern hall, so the sum insured has to allow for specialist trades and materials. Volunteers who get hurt are not employees, which is why a separate personal accident section matters. Fortis Risk Solutions compares wordings for property, volunteers and board liability, and checks how each insurer treats abuse claims and off-site activities. List everything the group runs in a year, one-off events included, then call 03 7046 3766 or send an enquiry.
What Faith and Not-for-Profit Insurance Covers
Church and not for profit insurance covers religious institutions, charities and community organisations against financial loss arising from their activities, operations, governance responsibilities and community engagement.
Cover is tailored to property, liability, people and management risks. It lets an organisation run its programs while meeting governance, regulatory and duty-of-care obligations.
Places of worship, community centres, charities and volunteer-based programs all need this cover. A church insurance program usually combines property and volunteer cover with management liability insurance. It sits within our business insurance range at Fortis Risk Solutions.
Faith and Not-for-Profit Insurance: Cover Sections and Benefits
What Faith & Not-for-Profit Organisations Insurance does not cover
A not-for-profit insurance programme is built from several policies, and the gaps usually sit between them rather than inside any one section. The exclusions that catch committees out are:
- Abuse and molestation claims, which are excluded or heavily limited unless the insurer has agreed a specific extension
- Injury to volunteers, who are not employees and are not picked up by a liability policy or by workers compensation
- Counselling, pastoral advice and welfare services, which need professional indemnity rather than public liability
- Damage to a hall or church left unoccupied beyond the period stated in the policy
- Wear, tear, rot, termites and settlement in older or heritage listed buildings
- Theft or misuse of funds by a volunteer or office bearer, unless a fidelity or crime section is bought
- Off site events, camps and street fundraising that were never notified to the insurer
FRS maps the activities the organisation actually runs across the year, including one off events, then checks each one against the policies before renewal.
How Faith & Not-for-Profit Organisations Insurance premiums are set
Insurers look at what the organisation does with people and property, not at income. The rating factors that matter are:
- Replacement value of buildings and contents, and whether the building is heritage listed or of older construction
- Activities run: worship, childcare, aged support, youth groups, camps, op shops or community transport
- Number of members, volunteers and paid staff, and how often the premises are hired to outside groups
- Safeguarding practice, including working with children checks, screening and supervision policies
- Fire protection, alarms and the security of a building that sits empty most of the week
- Claims history, including storm and malicious damage
- The liability limit chosen and the excesses across each section
Good governance paperwork is worth real money here. FRS presents the safeguarding and committee documents with the submission, so not-for-profit insurance is rated on how the organisation is run rather than on assumptions.
How to claim on Faith & Not-for-Profit Organisations Insurance
Committees change and records move, so the first job is knowing who calls the broker. Give one office bearer the authority to report and keep the policy schedule where the committee can find it. The FRS process:
- Notify: Contact FRS as soon as the incident is known, even where the organisation expects no claim to follow
- Make safe: Make the property safe and stop further damage, keeping receipts for emergency repairs
- Report: Report theft, vandalism or malicious damage to police and note the reference number
- Do not admit liability: Do not admit liability, and do not discuss fault with the injured person or their family
- Refer allegations immediately: Refer any allegation involving a child or a vulnerable person to FRS immediately so the insurer and its legal panel are engaged from the start
- We lodge and manage: FRS lodges the claim, deals with the adjuster and keeps the committee updated in writing
Our make a claim page sets out what to have ready.
Faith & Not-for-Profit Organisations Insurance compared with a standard Business Pack
| Question | Not-for-Profit Programme | Standard Business Pack |
|---|---|---|
| What it covers | Property, liability, volunteers, office bearers and event exposures in one programme | Property, liability and interruption for a trading business |
| Who buys it | Churches, associations, charities, community groups and welfare services | Shops, offices, warehouses and other commercial operators |
| Typical trigger | An injury at a working bee, storm damage to a hall, a complaint against a committee | A customer slip, a fire, a burglary |
| Sits with | Association liability, personal accident for volunteers | Commercial motor, cyber |
A pack written for a shop leaves volunteers, office bearers and hired out halls uninsured. Not-for-profit insurance keeps those exposures together, and FRS adds management liability where the committee carries decisions that could be challenged.
Faith & Not-for-Profit Organisations Insurance - Client Case Studies
Cases from the Fortis Risk Solutions broking team. Client names have been removed.
Client case: Unfair Employment Dismissal
The client situation: Our client, a faith organisation, had concerns regarding a staff member’s conduct following a complaint by another staff member alleging inappropriate conduct and concerns about professional boundaries and compliance with the organisation’s Safety Policy. An external investigation engaged by the organisation was undertaken, and management subsequently considered a number of performance and conduct issues. Following a formal meeting, management reached the decision to terminate the staff member’s employment.
After the employment ended, the former employee lodged an unfair dismissal application with the Fair Work Commission and made settlement demands through his legal representative. Our client also sought legal advice and made a counter offer to the former employee. They then notified FRS and asked whether a claim could be lodged under their Management Liability insurance.
After a conciliation, the dispute was ultimately resolved through a settlement of approximately $15,000, with the organisation also incurring $5,500 in legal costs.How the policy responded: Our client’s policy responded under Employment Practices Liability, covering the $15,000 settlement and $5,500 in legal costs. After the $5,000 policy excess, the insurer reimbursed approximately $15,500.
This type of claim would typically be considered under the Employment Practices Liability section of Management Liability. Subject to the insurer accepting the claim and the policy terms, the cover can respond to legal and defence costs incurred in responding to and defending the unfair dismissal proceedings, as well as certain settlements or compensation if covered by the policy.How Fortis Risk Solutions helps: Employment claims are easy to miss because nothing is damaged. We make sure Employment Practices Liability is part of the management liability policy, and when a letter arrives we lodge the claim and deal with the insurer for you.
Every policy is different and the outcome of a claim depends on its terms. As your broker, Fortis Risk Solutions compares insurers and policy wording before you buy, and lodges and manages the claim for you when something happens. Talk to us about your own cover.
Not-for-Profit Insurance FAQs
Faith and community organisations carry risks that most businesses do not: volunteer exposure, public gatherings, pastoral care responsibilities, governance obligations and reputational sensitivity. A standard commercial package rarely handles them well, particularly the public liability insurance section for open events.
Yes. Cover can include personal accident insurance and liability protection for volunteers while they carry out authorised activities.
Yes. Board members and office bearers can be held personally liable for governance, employment and regulatory decisions, even in unpaid roles.
Yes. The professional indemnity section can be structured to respond to claims from counselling, pastoral advice and support services, subject to full disclosure and policy terms.
Often, yes. Regulators, governing bodies and landlords frequently require faith and community organisations to carry abuse and molestation liability cover as part of their safeguarding obligations.
Faith and not-for-profit policies differ in exclusions, duty-of-care requirements, volunteer definitions and claims handling. As your broker, FRS helps you:
- Understand and disclose your activities accurately
- Structure protection for volunteers, members and leaders
- Align insurance with governance and safeguarding frameworks
- Compare specialist insurers and policy wordings
- Act as your advocate if a sensitive claim or incident arises
We also check the sections organisations forget, such as cyber insurance for donor and member records, and commercial motor insurance for vehicles used by staff and volunteers.
Churches rely on volunteers and old buildings, and both need attention. Rebuilding a heritage church can cost far more than a standard building, so the sum insured should reflect that. Volunteers are not employees, so check whether personal accident cover applies to them. Abuse liability and board members' liability are often separate sections that have to be asked for. We help congregations and community groups weigh these points before choosing cover.
Related pages
Related industry pages: Childcare Centre and Kindergarten Insurance, Community, Education and Public Sector Insurance
Talk to a broker about Faith & Not-for-Profit Organisations Insurance
Call 03 7046 3766 on weekdays between 9:30am and 6pm, email admin@fortisrisksolutions.com.au, or send an enquiry and a broker from our Box Hill or Hawthorn office will come back to you about faith & not-for-profit organisations insurance. Tell us what the business does and what the lease or contract asks for, and we take it from there.