Sexual Abuse and Molestation Liability Insurance (SAM or SML) for Home/Health Care Agencies

Have you been asked to provide insurance coverage for Sexual Abuse and Molestation Liability by one of your contractors?  A few business insurance carriers offer important SML products that provide financial protection, response services, and risk management for organizations against the cost of defense and liability in responding to actual or alleged acts of sexual misconduct/abuse and molestation, as well as negligent hiring and supervision.

These policies have been written since around 2006 and are now much more common.  They are essential for situations where State, School Districts, or other contracts require it or where other General Liability carriers are looking to exclude or limit exposures. They also address the reputational damage that sexual misconduct and molestation allegations create for companies. Although uncommon, limits up to $10 million are available as primary or excess policies. These policies can be set as claims made or occurrence.

Although they are primarily offered as claims-made, it is possible to write excess of General Liability occurrence programs.  For example, SML program placements, where larger program opportunities can be reviewed and considered for lower program rates.

There has been a significant increase in media attention surrounding victims of sexual abuse over recent years, ranging from movements such as #MeToo, online/TV documentaries, and lawsuits against high-profile institutions uncovering past horrific incidents. Certain States such as CA, IL, NJ, and NY have also reacted by extending the statute of limitations periods for sexual abuse matters. As a result, sexual misconduct & molestation insurance coverage continues to grow.

Coverage Parameters

Most of the policies in this category are made up of primary and excess placements with limits ranging from $300k to $10M.  Employee sizes range from 1 to 50,000 employees.

A range of different industry classes, with particular success in the targeted industries of Religious Organizations, Education, Healthcare, Transportation, Non-profits, Leisure, and Contractors.

Typically excluded are entertainment entities, foster care, and adoption exposures.  The demand for these SML products is growing, and we want to help you find the best policy for your organization.

Below is a list of the types of employees that this kind of policy can cover:

Personal Companions, Homemakers, Live-In Companions, Certified Nurse Aids (CNAs), Licensed Practical Nurses (LPNs), Registered Nurses (RNs), Medical Technicians, Nurse Practitioners, Speech Therapists, Occupational Therapists, Physical Therapists, Social Workers, Physician Assistants, CRNAs, Nurse Midwives, Physicians, and Physicians Assistants (all types).