Social service organizations are the backbone of care for society’s most vulnerable - children, the elderly, individuals with disabilities, and those facing mental health or housing crises. Yet, the very nature of this work close, trust-based interactions, also creates exposure to Sexual Misconduct Liability (SML).
In recent years, SML claims have surged, driven by legal reforms and heightened public awareness. At the same time, many traditional insurance carriers are retreating from this space, leaving social service providers exposed. This article explores the evolving risk landscape, the contraction of general liability coverage, and how Safeguard and Safeguard+ offer tailored solutions to fill the gap.
The Social Services Sector: A Landscape of Vulnerability and Care
Social services span a wide array of sectors, each with unique exposures; Services for Mental Health, Children & Family, Elders & Disabled, Housing & Homelessness, Employment & Financial Assistance, Justice & Advocacy and Community Development. However, one thing each of these sectors has in common is their close contact between caregivers and vulnerable clients - creating both opportunity for impact and risk for abuse. SML claims can arise from staff, volunteers, contractors, or even other clients, and no organization is immune.
A Changing Market: Coverage Contraction and Gaps
The insurance market for SML coverage has dramatically contracted. Over 25 states have extended or removed statutes of limitations. California’s AB 2777 extended the civil filing deadline from 2 to 10 years, triggering a wave of revived claims. Major insurers have exited the market or slashed capacity, especially in high-risk states like California, New York, and Florida. Abuse exclusions, token sublimits (\$50k–\$100k), and vicarious liability-only coverage are now common. The result? Many social service providers now carry general liability policies that exclude or severely limit SML coverage, leaving them exposed.
Specialized Solutions: Safeguard and Safeguard+
To address these gaps, we offers two solutions, our Safeguard, our standalone primary and excess coverage and Safeguard+, with excess SML coverage over Beazley’s Misc Med Primary Coverage. Together, these products offer flexible, scalable protection tailored to each organization’s needs, whether replacing excluded coverage or reinforcing limited layers.
