Proper Coverage for Abuse and Molestation are Critical to a Social Service Agencies Welfare

Aug 24, 2018

While abuse claims and allegations are few in number for a social service agency, the cost in public reputation can be devastating. When you couple that with the cost to defend, plus any potential payment for a judgment, the client can be driven out of business by a single claim.

Abuse claims can occur between an employee and consumer, or between consumer and consumer. Likewise, abuse claims may occur between a consumer and third party. The form of abuse can be sexual, physical or mental in nature. Make sure the form you offer to your client responds to all these types of occurrences. Also, make sure your carrier will defend and indemnify on behalf of the entity should the need arise – not all carriers do.

Many times defense of the claim can exceed the cost of the award. To protect your client, be sure the cost to defend is in addition to (or outside) the liability limit. Therefore, make sure abuse and molestation carry its own limit and aggregate.

Loss prevention plays a critical role in preventing and defending abuse claims. Policies including background checks and control of “one on one” exposure to vulnerable clients should be in place and rigorously enforced.

Finally and most importantly, have the confidence that your carrier has the expertise to adjust the claim. Ask these questions; does the carrier have special handling of these types of claims, are they familiar with the coverage form and the defenses a social service agency can provide? This is when experience matters.

Abuse accusations, real and unfounded, all need proper coverage and defense. This coverage is an essential component to all social service, nonprofit and healthcare proposals.

The Jencap Nonprofit/Social Services Insurance Team

The Jencap Nonprofit/Social Services Insurance Team

There are many problems and challenges that keep nonprofit and social service organization leaders up at night — sourcing adequate insurance coverage shouldn’t be one of them. The Jencap team has nearly 30 years of class-specific experience, providing customized insurance solutions to protect mission-driven organizations in over 300 target classes as well as their dedicated staff and volunteers.
abuse claims | loss prevention | social service agency | social services coverage | social services insurance | social services liability



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At Jencap, we’ve served in the nonprofit and social services space for over three decades and are intimately aware of the numerous challenges these organizations face. Employees and volunteers step into environments where needs are great, and risk exposures are even greater. We’re invested in ensuring mission-driven organizations can continue to serve their communities to the very best of their ability, day after day. Jencap’s team of specialized brokers know how to put your clients’ budgets, no matter how large or small, to work for them and creatively build customized coverage that meets their individualized needs and risk profiles.

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