Did you know that the implementation of a new federal law is greatly affecting abuse and molestation insurance coverage? The Child Sex Abuse Victims Act of 2022 now eliminates the statute of limitations for victims of sexual abuse for civil cases. Previously, victims of sexual abuse had until they became 28 years old, or 10 years from the abuse and/or injury to file a civil lawsuit. Now, a victim can press legal charges any time after the abuse, making abuse and molestation coverage that much more important in protecting your childcare facility, assets, and aiding in litigation payments. 

Before this new law, insurance companies used the statute of limitations as a factor in estimating their expenses for future claims. Now with the removal of the statute of limitations from sexual abuse civil claims, many insurance companies either no longer offer this coverage or have put additional coverage requirements in place since any sexual abuse allegations and subsequent legal proceedings are so costly. This federal change affects many different organizations, including those in the nonprofit sector: religious, educational, sports, etc. It is critical for organizations to have this coverage in place when facing the detrimental allegations of sexual abuse. 

Hiring a full-time risk advisor has so many benefits, including staying up-to-date and understanding new laws like this and then applying necessary changes to your coverage. Finding an agent that you can trust is important as they will bring to light considerations you wouldn’t think of, like customizing a plan depending on your state’s distinct legislature, regional weather situation, and the core risk categories that are specific to childcare facilities. 

Diversified Insurance Industries has over a decade of demonstrated expertise in building insurance relationships with child care companies. As a preferred vendor to many national child care franchises, DII will ensure your business is correctly and completely in compliance with both franchise and state/local business regulations. 

Steve Johnston, CBIA and DII's Child Care Insurance Specialist, is here for you today, tomorrow and for the duration of your child care insurance needs. As a DII agent for over 20 years who has worked exclusively with child care franchises since 2013, Steve is known for his tenacious and long-term commitment to franchisees and child care center owners. His expertise in child care service provider policies is unparalleled in the industry, and he will help your franchise reach 100% compliance at the best possible price.

Contact Steve for a consultation where he will compare your current policy with the coverage that you should have as laws change. If you have any doubt in the coverage capability of your plan, contact Steve.

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