Does the policy provide coverage for lawsuits alleging sexual abuse and molestation?
Yes, coverage is specifically provided for sexual abuse/molestation in the amount of $1,000,000 each occurrence, subject to a $2,000,000 aggregate. Such coverage usually provides protection for the innocent board of directors and officers who are shotgunned into these lawsuits for negligent failure to screen out an abuser with a criminal record or failure to appropriately respond to an allegation of abuse/molestation. On the other hand, the alleged abuser or molester has no coverage.
The policy is silent on this issue. There is no specific provision that says that such lawsuits are not covered (excluded from coverage). Presumably, what is not specifically excluded is covered if all of the other policy requirements are met. Typically, if all of the other policy requirements are met, there is coverage for the board of directors and officers who are shotgunned into these lawsuits for negligent failure to screen out an abuser with a criminal record or failure to appropriately respond to an allegation of abuse or molestation. On the other hand, the alleged abuser or molester often has no coverage because of the “intentional injury” exclusion that is contained in all General Liability policies.
