Mar 15, 2021
Sexual Misconduct and Molestation Liability Insurance Update
Since 2006 we have been offering this product on behalf of Beazley. We have the pen for the smaller, clean accounts, and have a daily appointment with the underwriters to discuss the larger/distressed accounts. We can also access a Consortium as an alternative market.
Highlights
- In-house binding authority with exclusive enhancement endorsement
- Minimum premium $3,500
- Minimum retention $15,000
- Limits under our binder - $250,000 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
- Primary and excess cover available, plus excess over GL/package policies that provide a sub-limit
- $250,000 assault and battery sublimit – for Transportation risks only
- New policy form - to be released around mid March, this will include Safeguard reporting increased from 48 hours to 72 hours, EPL exclusion loosened to apply only to the part of a claim which relates to EPL allegations and enhanced Independent Contractor definition
Prevention and response services
- $50,000 first dollar limit for response service fees and expenses which are in addition to the limit with our enhancement endorsement
- Crisis management, legal services, forensic and investigatory support, victim support, government relations and many more
- New prevention service provider – Praesidium - from 1 March 2021, with several new services including discounted background screening in the US
- Dedicated Safeguard risk management website (www.beazleysafeguard.com) available 24 hours/7 days a week
- Coverage available for US and Canadian domiciled risks only
Target industries
- Educational Institutions
- Not-for-profit Organisations
- Religious Institutions
- Transportation Providers
- Healthcare Providers
- Leisure Providers/Facilities
- Companies purchasing due to contractual requirements (especially contractors)
Outside scope
- Foster Care Services, Adoption Agencies and Foster Families
- Staffing
- Gig-economy (e.g. Uber, Airbnb etc.)
- Dating Agencies/Websites
Recent Successes
- County Clubs, in NY and KY – primary $1m
- Real Estate for Affordable Housing for those in need in PA– primary $1m
- Management Services to Behavioral Health and Special Education companies in MD– primary $5m
- Co-educational Private School in CA– excess $3m xs $2m
- Adoption Group Home in PA – excess $4m xs $1m
- Assisted Living in CA – primary $1m and $1m xs $3m
- Contractors in LA and CA – primary $1m
- Non-Emergency Medical Transport in NY – primary $1m
- Childcare in VA – primary $1m
- Healthcare for Mental Illness, Addiction and Disabilities in NJ – excess $5m xs $5m xs $1m/$3m
- Drug and Alcohol Rehabilitation - excess $900k xs $100k/$300k
- Election Tech/Data Company in MO – primary $2m
- Religious Organisation with Childcare in GA – primary $1m
- Healthcare Clinics in GA, CA, MN and CT – primary $1m and $2m
- IT Solutions in CA – primary $1m/$2m
- Beauty Academy in NJ – primary $1m
- Janitor in NC – primary $1m
Claims examples
Not-for-Profit - Social services: settlement of sexual abuse lawsuit brought by a child cared for in boys’ home which led to closure of home
Religious Organisation - Christian sports camp: faced several lawsuits alleging that its former director had abused young male campers
Transportation - School bus: allegations of inappropriate physical contact by substitute bus driver involving several minor passengers
Education - Public schools: one of the largest US school districts settled allegations relating to a single teacher and his abuse of elementary school pupils over several years
Healthcare - Hospital: pediatrician convicted of sexual assault against young patients in several settings over a 15 year period. Suit was brought against the hospital, individual physicians and the state medical society
Leisure - Bowling: bowling coach convicted of molestation involving several minor players
View more information about our professional and financial risk expertise.
