Monday, July 28, 2008

What is Abuse and Molestation Coverage?

If delivering services to minors, seniors, or persons with disabilities, general liability insurance typically should not exclude coverage for abuse and molestation. Abuse and molestation coverage provides the Contractor with a means of protecting its financial assets in the event of an abuse and molestation allegation. Abuse and molestation coverage targets specific acts and usually provides defense inside limits coverage (i.e., attorney fees erode the overall coverage limits). In addition, abuse and molestation coverage includes coverage for allegations of anguish, shock, and humiliation. At least as important as the financial protection it affords, this coverage affords Contractor access to loss prevention personnel who can assist it in establishing and maintaining employee and volunteer screening procedures.

A contract should have a provision related to working with vulnerable parties similar to the following:

Background Check, Suitability Determination, and General Comport . Contractor and Contractor's employees and agents who perform services with minors under this Contract are required to undergo a background check and check of FBI fingerprint files and a suitability determination by Owner. Upon award of the Contract, Owner will provide Contractor with forms and instructions on completing the forms and for submission. Contractor shalll return completed forms to the Owner at least 5 business days prior to reporting to work. If a background check reveals information that Owner deems to represent a risk to the interests of Owner, the Owner will immediately terminate the Contract. When working with minors, an unrelated adult is not allowed to be alone with a child.

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