Why Abuse Cover Matters

Abuse claims (whether allegations or proven incidents) can have devastating consequences for victims, organisations, and individuals involved. In our experience, claim numbers are also increasing, making clarity around cover more important than ever. Many organisations assume abuse is automatically included within a liability policy. In reality, abuse cover is often treated differently from standard public liability, or sub-limited, and the basis of cover can vary significantly between insurers. Misunderstanding this can lead to dangerous gaps in protection, especially when switching providers.

What is meant by ‘Abuse Cover’

Abuse cover typically protects an organisation against the financial consequences of actual or alleged abuse carried out by employees, volunteers, or others for whom the organisation is responsible.

This may include:

• Compensation to victims
• Legal defence costs
• Investigation expenses
• Support for responding to allegations

If arranged correctly, Public Liability and Management Liability insurance can respond to abuse claims, to support you through the process, subject to you meeting insurers requirements.

The Two Main Bases of Cover for Abuse

There are two primary bases of cover used to underwrite abuse risks:

Claims Occurring Cover: This responds to incidents of abuse that occur during the policy period regardless of when the claim is made.

Claims Made Cover: This responds only to claims that are made during the policy period regardless of when the incident occurred.

Why The Basis of Cover Matters

Abuse claims often surface years, even decades, after the alleged incident. This means your basis of cover distinction is critical.

• With occurrence-based cover, the policy in force at the time of the incident responds.
• With claims-made cover, the policy in force when the claim is made responds.

This distinction becomes critical, particularly around a consideration to change insurers. Simply marketing your insurance or moving to a new provider can unintentionally leave you without cover for historic abuse claims, if the basis of cover changes and this isn’t considered or catered for through the means of a retroactive date being applied.

The Role of Insurers in Abuse & Safeguarding

While insurers do not have statutory safeguarding duties, they increasingly participate in national safeguarding conversations. Zurich, for example, has been a core participant in the Independent Inquiry into Child Sexual Abuse (IICSA)*, reflecting the sector’s growing responsibility in how organisations manage abuse risks.

Key Risks and How to Avoid Gaps

• Switching insurers without checking the basis of cover can leave historic abuse incidents uninsured.
• Assuming abuse is automatically included in public liability policies is a common and dangerous misconception.
• Failing to maintain safeguarding standards may invalidate cover.
• Not reporting allegations immediately can jeopardise protection.

Practical Steps for Organisations

To ensure you are properly protected:

• Review your current policy wording (identify whether cover is occurrence-based or claims-made).
• Be clear on any expectation imposed on you from insurers regarding document retention periods or policies to be in place.
• Ask your broker for a clear explanation of how abuse cover operates.
• Document your safeguarding procedures and ensure they are up to date.
• Train staff and volunteers regularly on safeguarding responsibilities.

At AssuredPartners, our team have been dealing with insurance for the Charity, Care and Education sectors for over 40 years. With our long-standing insurer relationships and sector expertise, our team are well versed in advising on this topic, so please do feel free to reach out to us for a confidential chat.

*Source – C.8: The approaches of defendants and insurers to claims | IICSA Independent Inquiry into Child Sexual Abuse

The information provided is offered as insurance industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This document is not intended to offer legal advice or client-specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your organisation may already have in place or that may be generally available. General insurance descriptions provided do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis.

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