December 1, 2025

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Faith-based nonprofits carry unique missions—and with them, unique risks. Most ministries, schools, and houses of worship are well-advised to maintain, at the very least, general liability and property insurance. Similarly, many faith-based nonprofits have directors and officers coverage for their board members and other leaders. But some exposures to risk fall outside standard insurance policies, leaving organizations vulnerable to potentially devastating financial and reputational loss.

Below are three easily overlooked insurance coverages that faith-based nonprofits may not know they need, but should consider.

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1. Cyber Liability Coverage: Protecting Against Digital Threats

In today’s connected world, even the smallest organization or ministry can be a target for cybercrime. Donation portals, email systems, and member databases often store sensitive financial and personal information. Hackers know that nonprofits often lack the robust security measures of large corporations, making them attractive targets.

A single phishing attack or data breach could result in:

· Theft of donor credit card or bank account information;

· Exposure of sensitive employee or member records;

· Ransomware demands that lock down mission-critical systems; and

· Legal obligations to notify those affected by a breach.

Why standard insurance is not enough: General liability policies typically exclude cyber-related incidents. Without cyber liability coverage, the costs of forensic investigations, legal defense, breach notifications, and even public relations support could fall entirely on the nonprofit.

What to look for: A good cyber liability policy should cover breach response, ransomware payments, regulatory fines, and liability lawsuits. Some policies also include training and tools to help staff recognize cyber threats before they cause damage. Cyber cover may come in the form of a stand-alone policy but can often be added as an endorsement to existing coverage.

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2. Sexual Abuse & Molestation (SAM) Coverage: Guarding Your Mission and Reputation

Few things are more devastating to a faith-based organization than an allegation of abuse. Even if a claim is completely unfounded, the legal and reputational fallout can be immense. And with many states passing “reviver statutes” in recent years, providing “lookback windows” for claims that would otherwise be barred by statutes of limitations, organizations may just now be faced with defending claims for alleged events that occurred long ago.

Many leaders assume their general liability policy covers this risk. Often, it does not. Sexual abuse and molestation (SAM) claims are usually excluded or limited under standard policies. Additionally, most general liability policies are “occurrence” policies, meaning the events leading to the claim must have occurred during the policy period, not sometime in the past, to be covered. Without liability coverage, legal defense costs and settlements could put an organization in severe financial jeopardy.

Why SAM coverage matters:

· SAM coverage provides funds for legal defense, settlements, and counseling for victims (if applicable).

· SAM coverage helps demonstrate to donors, members, and the public that the organization takes protection seriously.

· SAM coverage can be paired with risk management resources such as background checks, staff training, and abuse prevention protocols.

Faith-based nonprofits have a moral and fiduciary responsibility to safeguard those they serve. SAM coverage affords an added layer of protection that aligns with that responsibility.

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3. Valuable Articles & Collections Coverage: Preserving Sacred Assets

Many faith-based organizations hold items of historical, cultural, or spiritual significance, such as religious artwork, musical instruments, stained glass, manuscripts, or relics. These objects are often both extremely valuable and literally irreplaceable.

The gap: Standard property insurance usually covers only basic replacement costs, often excluding fine art, antiques, or collectibles. That means an ornate chalice, rare manuscript, or historic tapestry might not be protected or could be grossly undervalued in the event of theft, fire, or accidental damage.

Valuable articles & collections coverage provides specialized protection for these items. Policies can cover worldwide transit (for traveling exhibits or mission work), accidental breakage, and restoration expenses. Coverage can also be tailored to reflect the unique value of sacred artifacts.

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A Final Word

Faith-based nonprofits are stewards, not just of resources, but of trust. Protecting against modern risks (whether digital, reputational, or cultural) helps safeguard the mission for generations to come.

While general liability and property insurance remain foundational, these three coverages—cyber liability, SAM, and valuable articles/collections—can provide vital protection against risks many organizations overlook.

Taking time to review these options with a knowledgeable insurance advisor can help ensure your ministry’s legacy remains secure.