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Home / Coverages / NONPROFITS OWN® / Improper Sexual Conduct and Physical Abuse Liability

Improper Sexual Conduct and Physical Abuse Liability

Any organization that provides services to youth, developmentally disabled individuals of any age, or senior citizens should consider this type of insurance. The intent of this coverage is to respond to allegations of sexual abuse. This should not be confused with sexual harassment, which is more appropriately insured under a directors and officers policy.

Some insurers claim that this coverage is included in their general liability insurance because the policy does not specifically exclude improper sexual conduct, but relying on a general liability policy is a risk that may provide no coverage for employees and volunteers who may be unfairly accused. Unless this coverage is purchased as a separate policy, specifically providing coverage for improper sexual conduct, you will likely not have any coverage for your innocent employees or volunteers.

Enhanced Coverage of NONPROFITS OWN® Improper Sexual Conduct

Summaries of key features only. Actual policy language will differ.

  • Separate limits from the General Liability Coverage Form
  • Various limits available: aggregate limit to $3 million
  • Umbrella limits to $10 million available
  • Prior Acts Coverage available for an additional charge
  • Broad definition of insured includes nonprofit organization as well as executive officers and directors, employees, volunteers, interns, and students-in-training

Read more…

From the CLAIMS FILES

Day Care Molestation:
An independent daycare contractor was certified by a nonprofit. A child placed in the daycare center was molested by the teenage grandson of the daycare contractor. Litigation ensued and the nonprofit’s records showed all appropriate site visits and background checks had been carefully done. Based on case law that insulates a nonprofit from the unforeseen criminal acts of a third-party and their strict adherence to protocols, we were able to obtain a court ordered dismissal that was upheld on appeal. No damages were paid on behalf of the nonprofit, but we incurred almost $150,000 in defense legal expenses.

Assault by Employee:
A client of the nonprofit’s safe harbor house was sexually assaulted by one of the nonprofit’s part-time gardeners, who had a mild mental illness. Investigation revealed that the gardeners were supposed to be closely supervised and his absence from the crew could not be explained. Based on medical records that reflected little physical trauma but a psychological reaction, the claim was eventually settled at a mediation for $50,000. We incurred $11,000 in legal expenses.

Battery by Teacher:
One of the students in a nonprofit’s school for disabled and difficult students began acting out and needed to be physically restrained. It was subsequently learned that the teacher had not correctly followed take-down procedures, but injuries as a result of the alleged physical abuse were minor. The parents retained an attorney and we were able to resolve the claim for a very modest $12,000 to be placed into a college trust fund. No litigation expenses were necessary.

Learn More

  • Flip through our 2019 Annual Report
  • Our Enduring Commitment to the Nonprofit Sector
  • Top 10 Reasons 501(c)(3) Nonprofits Rely on NIA
  • Help Us Win our Fight for Nonprofits in Congress with the Nonprofit Property Protection Act
View Our FAQ

Thanks for providing an alternative insurance source and for taking the time to understand your nonprofit clients.

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  • List of Coverages
  • NONPROFITS OWN®
    • General Liability
    • Directors and Officers Liability
    • Flat Rate D&O
    • Improper Sexual Conduct and Physical Abuse Liability
      • Improper Sexual Conduct Details
    • Social Service Professional Liability
    • Employee Benefits Liability
    • Business Auto Liability
    • Non-Owned/Hired Auto Liability
    • Umbrella Liability
    • Auto Physical Damage (NIAC)
    • Businessowners Property (NIAC)
    • Employee/Volunteer Dishonesty (NIAC)
  • Companion Programs

Learn More

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    • Nonprofits Insurance Alliance®
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  • Coverages
    • List of Coverages
    • NONPROFITS OWN®
      • General Liability
      • Directors and Officers Liability
      • Flat Rate D&O
      • Non-Owned/Hired Auto Liability
      • Umbrella Liability
      • Businessowners Property (NIAC)
      • Improper Sexual Conduct and Physical Abuse Liability
      • Social Service Professional Liability
      • Employee Benefits Liability
      • Business Auto Liability
    • Companion Programs
      • Auto Physical Damage (ANI)
      • Businessowners Property (ANI)
      • Employee Dishonesty (ANI)
      • Participant/Volunteer Accident
  • Insurance Brokers
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AM Best A VIII (Excellent) Rating

The insurance policy, not this website, forms the contract between the insured and the insurer. The policy may contain limits, exclusions, and limitations that are not disclosed in this website. Coverages may differ by state. NIAC, ANI, and NANI are AM Best A VIII (Excellent) insurers with 501(c)(3) nonprofit status. Nonprofits Insurance Alliance® is a brand of Alliance Member Services® (AMS).
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Nonprofits Insurance Alliance® (NIA) is a brand of Alliance Member Services® (AMS). © 1996–2021 AMS.