Sexual Abuse & Molestation (SAM) insurance

What is sexual abuse and molestation insurance?

Sexual Abuse and Molestation Insurance provides coverage for organizations against claims arising from alleged sexual misconduct or molestation by an employee or other representative of the organization. Given the sensitive nature of such allegations, this insurance is crucial to help shield organizations from potential legal, financial, and reputational damages.

What does it cover?

Sexual Abuse and Molestation Insurance typically covers:

1. Defense Costs: The costs associated with defending against allegations, whether they proceed to court or are settled outside of it.
2. Settlements: Financial settlements that might arise from claims related to abuse or molestation.
3. Other Court-related Expenses: This could include judgments, legal fees, and other related costs.
4. Medical Expenses: Some policies might offer coverage for the medical expenses of the victim.

What is excluded?

While specifics can vary by policy, exclusions often include:

1. Known Acts: If the institution was aware of the misconduct at the time the policy was purchased and did not disclose it, the claim might be excluded.
2. Intentional Acts: Insurance doesn’t typically cover the deliberate acts of the individual perpetrator, although it might cover the organization’s liability arising from the act.
3. Contractual Liabilities: Liabilities that arise out of a contract might be excluded unless covered under another policy provision.

Sexual abuse and molestation (SAM) insurance is essential for healthcare and senior living facilities, given the extent of this abuse in these industries revealed by recent reports.

How much is sexual abuse and molestation insurance?

The cost of this insurance varies based on several factors:

1. Type and Size of the Organization: Larger organizations with more employees might face higher premiums.
2. Coverage Limits: Higher limits of liability will typically result in higher premiums.
3. Deductible Amount: Policies with higher deductibles may have lower premiums.
4. Location and Jurisdiction: Some regions might have higher claim frequencies or higher potential settlement amounts, affecting the premium.
5. Previous Claims History: Organizations with a history of claims might face higher premiums.

It’s essential to get quotes from multiple insurers to understand the potential costs specific to your organization. Westwood Insurance Group typically does this as part of our service, comparing coverage and prices to find the best suited policy for you at the best price.

How do I get Abuse and Molestation Liability Insurance?

1. Consult a Broker or Agent: An experienced insurance broker like Westwood Insurance Group can guide you through the process, helping you understand your risks and potential coverage needs.
2. Evaluate Your Risks: Before approaching insurers, have a clear understanding of your organization’s activities, the number of people you serve, and potential vulnerabilities.
3. Compare Multiple Quotes: Different insurers might offer varying coverage limits, exclusions, and premiums. Ensure you understand the differences and compare them before making a decision. Your agent and broker will typically do this for you.
4. Implement Safety Measures: Implementing safety and training protocols can potentially lower your risk profile and subsequently your premiums.
5. Regularly Review Your Policy: As your organization grows or changes, your insurance needs might change as well. Ensure your coverage remains adequate by reviewing it regularly.

In conclusion, given the gravity and sensitivity of abuse and molestation allegations, it’s crucial for organizations to be adequately insured. Being proactive in understanding and obtaining the right coverage can protect against substantial legal, financial, and reputational damages.