Insurance May Cover Allegations Related To Sexual Abuse

Claims against companies related to sexual abuse – such as negligent hiring or negligent supervision and negligent retention – are becoming more common. Because the underlying act is often intentional and abhorrent, companies may assume their insurance will not cover these kinds of claims, but that assumption is unwarranted, writes Barnes & Thornburg insurance coverage attorney Steven P. Inman, II. Companies often have coverage for claims related to negligent, as opposed to intentional, supervision, hiring or other conduct that does not amount to complicity. Coverage in these matters is most likely to be found in commercial general liability policies, which are occurrence-based, which means companies or institutions where abuse is alleged to have occurred years ago may need to locate legacy policies.