Sexual Misconduct and Molestation Liability Insurance - Prevention and Response

An allegation of sexual abuse, whether founded or unfounded, can have potentially disastrous consequences for an affected organisation. Perceptions of insensitivity or mishandling can easily compound the error in the eyes of alleged victims, their families, the public and, potentially, the courts. Effective risk management is essential in order to reduce the risk of these events from happening, and should an incident occur, your clients need crisis management and communications as events unfold quickly and demand an urgent and well-coordinated response. Your clients need an insurance partner that understands their business and helps manage threats from beginning to end.

The Prevention

Total immunity from risk is impossible, but effective risk management can mitigate the exposure, while reinforcing commitment to the highest standards of safety.

AGR Safeguard clients have access to www.beazleysafeguard.com, a dedicated risk management website managed by Praesidium, a risk management firm with over two decades of experience helping organisations reduce the risk of sexual abuse of vulnerable populations.

Resources available to all policyholders:

• Model policies to assist organisations in the creation of abuse prevention policy documentation
• Screening and selection toolkit to assist in effective screening of employees and caregivers
• Crisis response toolkit that includes written resources and guidance to navigate crisis response before, during and after an allegation
• Foundational webinars covering abuse prevention guidance
• Online abuse prevention training
• Praesidium helpline for non-emergency discussion of high-level concerns (in addition to the Beazley incident reporting hotline)

Additional resources available to policyholders who meet a minimum premium threshold:

• Offsite general consultation with Praesidium’s Consultants (two hours)
• Webinars for specific industries and issues

The following resources are available to all policyholders, at an additional cost:

• A range of surveys, reviews and assessments designed to help organisations understand their potential gaps and deliver tailored advice and recommendations to strengthen operations
• Additional training in multiple formats for board members, leadership, employees, and volunteers to help organisations detect, prevent, and respond to abuse and create cultures of safety
• A professional certification in abuse risk management through the Certified Praesidium Guardian program where participants learn best practices in organisational abuse prevention
• Praesidium Accreditation for organisations wanting to publicly demonstrate they meet or exceed best practices and are committed to maintaining safer environments

The Response

The nature and speed of the response is everything. If handled well, the response can limit the distress caused, as well as the risk of serious reputational and financial damage.

Allegations and incidents of abuse are usually complex, highly sensitive and time critical. Organizations, most of which will never have dealt with such situations, can feel unprepared and overwhelmed at the prospect of managing their response and the multitude of issues suddenly confronting them. However, the onus is upon the organization to act quickly and decisively. The nature and speed of the response are everything. If handled well, the response can limit the distress caused, as well as the risk of serious reputational and financial damage.

Beazley has partnered with several firms, all highly experienced in their respective fields, to address the many operational and reputational challenges that organizations might face in the event of a crisis situation. While the service-providers’ fees and expenses will be met by Beazley up to $75,000 with the AGR enhancement, the service-providers will be engaged directly by the insured, to represent the insured’s interests.

Our expert panel can offer the following services, which can be tailored to the demands of a particular situation:

• Crisis management and communication services
• Legal services
• Forensic and investigatory services
• Access to a range of other services such as victim support and government relations.

AGR Exclusive Enhancement Highlights

• Response Services – $75,000
• Response Services first dollar limit for response service fees and expenses which are in addition to the limit with the AGR enhancement endorsement.  Offering crisis management, legal services, forensic and investigatory support, victim support, government relations
• Cancellation – 5% minimum earned (reduced from 25%)
• Hammer Clause – amended to 20%/80% from 100% borne by the Insured

Product Highlights

• In-house binding authority with exclusive AGR enhancement endorsement
• Minimum premium $2,000
• Minimum retention $5,000
• Limits under AGR Binder - $250,000 up to $5,000,000
• Limits under Consortium (Led by Beazley) $5,000,000 to $10,000,000
• Additional potential $5,000,000 limit through reinsurance with Gen Re
• Offering primary and excess, can also offer excess over GL/package policies that provide a sublimit
• $150,000 or $250,000 assault and battery sub-limit – for Transportation risks only
• Risk Management and Prevention Services with new provider Praesidium
• Dedicated Safeguard risk management website (www.beazleysafeguard.com) available 24 hours/7 days a week
• Coverage available in USA, Canada and Australia

Target Industries

• Educational institutions
• Not-for-profit organizations
• Religious institutions
• Transportation providers
• Healthcare providers
• Leisure providers/facilities
• Companies purchasing due to contractual requirements (especially contractors)

Industries they will not consider:

• Foster care services, adoption agencies and foster families
• Gig-economy (e.g. Uber, Airbnb etc.)
• Dating agencies/websites

Click here to read our Sexual Abuse and Molestation Liability brochure.

Click here to read our Active Assailant Appetite Guide.