Learn about sexual abuse and molestation insurance including coverage and costs. Even if an accusation of abuse or molestation is false, it can cost and organization a lot of money to defend - and do a large amount of reputational damage in the process.
Sexual Abuse And Molestation Insurance
Do you run an organization that works closely with youth, seniors or disabled clients? If the answer is yes, your organization should be having insurance coverage against sexual abuse and molestation.
Organizations such as churches, school camps, daycares, even charities are liable to claims of abuse (abuse could mean different types of allegations like mental abuse, physical abuse, humiliation & more). Such accusations can be devastating to any organization in terms of finance and reputation, regardless of whether any actual abuse has occurred.
If an accusation reaches a stage where the organization is required to defend itself in court, the cost of litigation so can be debilitating. An expensive legal battle can ultimately lead to the organization being forced to close its doors. Even some of the strongest organizations might survive a dragged out legal battle without the right coverage.
Who Needs Abuse Or Molestation Insurance?
Any organization that provides youth service, services to developmentally disabled individuals of any age, or any senior citizens should consider sexual abuse and molestation insurance. This coverage is to protect an organization from allegations of sexual abuse. Some people think this policy deals with claims of sexual harassment, but that is better covered under other types of management liability insurance.
On top of legal woes, an organization also has to struggle with the negative publicity that entails. Managing a public relations crisis can become a nightmare. Business operations and profits will take a negative impact, without financial support it becomes a vicious cycle and will quickly send your organization into disarray.
Some small organizations, especially those that do not have any employees, may believe that abuse and molestation insurance is pointless. The bad news is abuse cases between two individuals usually ends up in a "he said, she said" situation. Without any witnesses, often it boils down to the word of the accused against that of the 'victim'.
That is why it is essential that every organization that provides assistance or services to youth, seniors or disabled individuals be protected with sexual abuse and molestation insurance.
Undersatinding Sexual Abuse And Molestation Insurance
While the rise of sexual abuse and misconduct incidents in today's world, it is fortunate that coverage for abuse is readily obtainable in the open insurance market. Before you decide on what insurance policy to get, make sure that you fully understand the sexual abuse and molestation insurance policy coverages such as:
- Whether the coverage is for both sexual and physical abuse;
- Are there sufficient limits in both occurrence and aggregate;
- Is there an aggregate limit that is at least two times the occurrence limit;
- Is there a bodily injury deductible or self-insured retention (SIR);
- What are the exclusions from abuse & molestation coverage?
If the above legal terms sound unfamiliar to you, then it is advisable for you to hire a professional insurance agent to assist you. You might be thinking: How should I go about getting the right insurance coverage? Well, this is where the importance of a truly competent insurance agent or broker comes into play.
An agent with the experience, understanding of coverage, market knowledge is instrumental, even more so if he or she has handled similar cases in the past. What you truly need is a someone who can lead you through the labyrinth of forms, limits, retention issues, carriers, quality and reputation of claim handling.
While it is possible to do the paperwork on your own, however, doing so can be perplexing and time-consuming if you are inexperienced. Sexual abuse and molestation insurance is a relatively new form of protection. It would be a worthwhile investment to go with a specialized insurance agent instead of winging it by yourself.
How Much Does Sexual Abuse And Molestation Insurance Cost?
The short answer is that abuse coverage is not as costly as you may think. If you consider the consequences that entail in the event of a sexual misconduct accusation, the costs will look unequivocally inexpensive. But it will depend on type, size and location of the organization. Also see employment practices liability insurance for more information.
People often believe the only difference between insurance policies is the price - but this is not true - particularly with specialized coverages like this. For example:
- Some policies have very strict rules for the definition of abuse, and others have a much broader definition.
- Some policies can restrict the coverage to only those claims for abuse of a 'sexual nature', while others polcies will include mental and emotional distress.
Sexual Abuse And Molestation Insurance - The Bottom Line
We hope this article on sexual abuse and molestation insurance was informative. Hire an expert to help you choose and weigh the benefits of buying the right abuse coverage. Invest in a good policy so that your organization is adequately covered against abuse claims. The future of your organization lies in its ability to overcome adversities. It's a responsibility that each organization should take control of.