Implications for Insurance Coverage
The insurance industry has reached a watershed moment in their awareness of organizational sexual abuse and assault resulting in demands for accountability and best practices for vulnerable populations.
With the surge in historical claims over the last few years, experts refer to the current insurance market as hardening, thus becoming more difficult and expensive to obtain adequate insurance coverage for Abuse and Molestation.
While insurance carriers explore individualized approaches to control their own exposures, current trends occurring in the marketplace include:
- Reduction in the Limits of Liability
- Overall caps on the availability of coverage or sub-limiting Abuse & Molestation limits
- Changes to the type of event that triggers coverage with many carriers moving from a preferential Occurrence Based Form to a more complicated Claims Made Form
- Revisions to the policy definitions and scope of abuse
- Introduction of new or expanded coverage exclusions
While it should be the goal of every organization to prevent incidents of abuse from occurring in the first place, operating a business in today's world requires being prepared for the unexpected. If a situation should develop that requires your organization to defend itself against these claims, the cost of doing so can be debilitating.