The current controversy surrounding Penn State is just one of many incidences that are causing insurance carriers and underwriters to more closely scrutinize sexual abuse and molestation coverage and the practices and procedures of the businesses trying to attain this form of coverage.
Universities are by no means the only institutions being affected by this coverage change. Any business related to minors, elderly or disabled persons should be certain to obtain liability coverage for claims of this nature. Sexual abuse and molestation coverage should be of primary concern to the following industries, or industries of this nature:
- Daycares and private schools
- Non-profit organizations
- Camps and athletic programs
- Assisted living facilities/ Nursing homes
Although sexually related criminal acts may result in legal penalty to the individual(s), your company may also be brought to suit for hiring an employee who committed such an act.
Sexual abuse and molestation coverage can be included in the following types of policies in your business’s general liability coverage and/or directors and officers coverage. It is critical for business owners to consult with their insurance provider to ensure they possess adequate coverage for the type of exposures your business engages in.