Most general liability policies do not cover sexual abuse or allegations of sexual assault. Business owners need policies that can account for sexual assault and related allegations. Most employers don’t want to entertain the possibility that sexual assault or misconduct might happen in their business. The problem is that it is always a risk and you are better off if you are prepared for it.
How Can You Cover Sexual Misconduct?
Coverages like sexual molestation liability insurance or improper sexual conduct are usually endorsements to a professional liability policy. These are add-on coverages. The coverages that these add-ons offer include:
- Allegations of negligent hiring practices
- Investigations of sexual harassment or assault claims
- Failure to report sexual misconduct
- Negligent employment practices
Adding an endorsement to your liability coverage is the best way to cover sexual abuse liability.
What Costs Do the Policies Cover?
If there are allegations of sexual misconduct, what will the policy help pay for? Most of the time, these policies will cover legal costs and also reputational damage. If there are allegations of sexual assault or molestation, it can hurt your reputation. The policies can cover losses due to the damage to your reputation.
Most employers hope that they will not have to use their sexual misconduct coverage. However, there is always a risk and all employers must have coverage. Every industry and business carries this type of risk.