In the complex landscape of the disability and healthcare sector, safeguarding against potential risks is paramount. Among the many insurance solutions available, sexual abuse insurance has emerged as a critical component for disability and healthcare providers in Australia. This insurance protects organisations from financial repercussions and helps to reinforce their commitment to maintaining a safe and compliant environment for the customers and patients they care for, as well as staff.
Understanding sexual abuse insurance
Given the sensitive nature of disability and healthcare services, where trust and confidentiality are paramount, allegations of sexual abuse can have devastating effects on both the victims and the organisations involved.
Sexual abuse insurance is designed to protect disability and healthcare organisations from the financial liabilities associated with claims alleging sexual misconduct.
Key features:
- Coverage for legal costs: This insurance covers legal defence costs, settlements and judgements related to claims of sexual abuse or misconduct.
- Reputation management: Beyond financial protection, policies often include support for managing reputational damage, which is crucial in maintaining trust in the community.
- Families and carers of survivors: To demonstrate the organisation's commitment to addressing and rectifying the incident involved, some policies may offer payments to families and carers of sexual abuse survivors.
The sexual abuse insurance underwriting background
Insurers are likely to continue to strengthen their sexual abuse insurance underwriting guidelines and raise their expectations of prospective clients in the disability and healthcare sector, according to the recently released Praesidium Insurance Underwriting Carrier Benchmarking report on Sexual Abuse & Molestation Liability1. The report surveyed insurance carriers, brokers and organisations in various sectors globally.
The survey found that in 2024, 94% of the insurers canvassed (compared to 82% in 2022) reported they have defined underwriting requirements addressing the abuse prevention risk control practices that disability and healthcare providers must have in place to obtain sexual molestation liability coverage.
Sexual molestation insurance provider trends
How the sexual abuse insurance market is changing
The landscape of sexual abuse insurance coverage has significantly changed over a long time span. Comprehensive insurance for sexual abuse coverage was available some time ago but was restricted as insurance shifted from occurrence-based policies that cover incidents occurring during the insurance period, regardless of when the claim is lodged, to claims-made policies that apply only to claims made during the insurance period.
Recently the reluctance by underwriters to offer coverage has lessened, and insurers are now adopting a more risk-focused approach. They expect organisations to implement stricter controls to protect clients and vulnerable individuals under their care.
Insurers are increasingly demanding higher industry standards that go beyond organisational policies and procedures. They now require providers to take proactive measures and adopt a holistic approach to abuse prevention.
How our Gallagher disability and healthcare risk specialists can help
In the ever-evolving disability and healthcare landscape, protecting your organisation from potential risks is not just about financial security — it's about upholding the trust and safety of your customers, patients and staff.
By investing in strong safeguarding protocols, disability and healthcare providers in Australia can demonstrate their commitment to maintaining a safe, compliant and trustworthy environment.
Our advisors negotiate with multiple insurers to access the right advice to ensure all risk exposures, including those insurers might consider hard to place, are brokered with a range of markets to be in the optimal position to obtain the required cover for our clients.
As these insurance solutions continue to evolve, staying informed and proactive will be key to navigating the challenges of the future.
