The New Reality of SAM Coverage

Throughout the insurance industry, one of the most sensitive and consequential areas of liability continues to evolve: sexual abuse and molestation (SAM) coverage.

Once considered a niche exposure, SAM is now a focal point for legislative reform, revived historical claims, and expanding contractual obligations that reach well beyond traditional child-serving organizations. Where law, accountability, and insurance intersect, these shifts are transforming how risk is understood, transferred, and managed.

A Shifting Legal and Cultural Landscape

The increased visibility and empowerment of survivors represent significant progress. The #MeToo movement, along with public exposures of institutional abuse within the Catholic Church, USA Gymnastics, and the Boy Scouts of America, amplified survivors’ voices and changed the national conversation. That was also driven by growing awareness of why many victims, especially children, do not disclose abuse right away, often because they may not fully understand what occurred, feel shame or fear, or were harmed by someone they trusted. As education, emotional awareness, and social dialogue around the issue have evolved, so has the collective willingness to confront and address these experiences openly.

This cultural shift fueled nationwide legislative reform. Between 2017 and 2021, at least seven states eliminated the civil statute of limitations (SOL) for some types of child sexual abuse claims, and 21 states extended them. By around 2019, fewer than 10 states had removed civil SOLs. By 2023, that number grew to 19 states, plus the federal government and two territories, with no civil SOL for at least some child sex abuse claims. Many of these reforms apply only to certain categories of offenses or defendants, and several states also introduced “look-back windows” allowing survivors to bring older claims.

At the federal level, the Eliminating Limits to Justice for Child Sex Abuse Victims Act of 2022 removed the civil SOL for specific federal child sexual abuse. Effective Sept. 16, 2022, it applies to claims not already time-barred but does not revive expired cases.

Legislative progress has created a vital path to justice and a new frontier of responsibility for institutions and insurers alike. While accountability requires these changes, they have also reopened long-tail liabilities, raising complex questions about historical coverage, carrier responsibility, and documentation that may no longer exist for decades-old policies.

A recent, widely reported case involving a private boarding school shows how complicated revived abuse claims can become. After former students came forward with decades-old allegations, one insurer agreed to defend under a reservation of rights before entering bankruptcy, while others denied coverage based on policy-period arguments and unclear wording around bodily injury and occurrence.

The coverage dispute that followed revealed how missing records, carrier insolvencies, and ambiguous policy language can leave organizations unexpectedly exposed. A state court ultimately approved a significant consent judgment after finding that certain insurers had breached their duty to defend, and the case is now before a court of appeals. This case highlights the importance of organizations understanding their historical coverage and maintaining complete policy documentation.

Even organizations that do not have direct contact with vulnerable populations are increasingly required to carry SAM coverage. Contractors, government agencies, and lenders often include provisions in contracts as a condition of doing business or securing financing. In many cases, the exposure isn’t about what the insured organization does directly. It’s about where they operate and who they interact with.

Market Forces and Industry Response

As exposures have increased, the market has responded. Many carriers have removed SAM coverage from standard general liability policies, replacing it with monoline, claims-made forms. While comprehensive public data on these moves is limited, industry commentary from brokers and insurers indicates a clear trend toward restricting coverage and tightening underwriting appetite. This has introduced a new layer of technical detail and due diligence: tail coverage may be required when canceling a claims-made policy; package program full limits have been reduced to sublimits, affecting available protection; and exclusions may appear where they didn’t exist before. This evolution isn’t just procedural. It reflects a broader recalibration of risk underwriting and management in an era of greater accountability.

While SAM risks touch every sector, some industries face higher exposure due to the populations they serve or the environments in which they operate. These industries include:

• Education: schools, universities, and athletic programs;
• Religious institutions: churches, affiliated schools, and ministries;
• Childcare providers: daycares, preschools, and camps;
• Nonprofits and human services: shelters, foster care, and group homes;
• Healthcare and behavioral health: Hospitals, long-term care, and therapy facilities;
• Youth sports and recreation: leagues, gyms, and clubs; and
• Hospitality and entertainment: hotels and venues hosting youth events.

Companies even on the periphery of these industries, such as vendors, contractors, and service partners, could be exposed through association or oversight.

In many cases, directors and officers liability coverage is also being tested, as leadership teams are named in allegations of failure to supervise or act, negligence, or concealment.

With these changes, buyer expectations have evolved. Organizations are looking for coverage that is clear, responsive, and comprehensive. They expect dedicated SAM limits, occurrence-based or properly retroactive claims-made coverage, no unexpected exclusions, prevention tools and staff training, and experienced, discreet claims handling.

But today’s market realities have also evolved. Some package carriers have exited the space altogether, and the traditional package capacity is limited. When moving from the occurrence package to a monoline, claims-made policy, pricing is higher and underwriting requirements are more comprehensive. All of this said, there is more capacity in the monoline marketplace than ever before. Solutions can be found.

Readiness, Responsibility, and Resilience

Amid these developments, the best approach is proactive engagement. Insured organizations can strengthen their position by auditing historical policies and records to understand the available coverage, reviewing contracts for SAM requirements and risk transfer clauses, educating leadership and staff on current laws and best practices, partnering with specialists who understand SAM exposure and can design tailored coverage programs, and emphasizing prevention through training, reporting, and background screening.

Advances in survivor advocacy have reshaped both our moral and professional responsibilities. The insurance community has a significant role to play not just in responding to claims but in supporting accountability, prevention, and education. With empathy, diligence, and collaboration at the forefront, brokers and clients alike can face these shifts with awareness and assurance as they move forward.