Zurich recommends that independent legal advice should be sought if you are approached by the Inquiry or if you feel you should proactively approach the Inquiry.
Transparency and openness is the best way to ensure effective communication on these issues.
How does insurance typically cover abuse cases?
Claims for abuse tend to fall under Public Liability cover, but some may come under Directors and Officers’ Liability, Governors’ Liability or Employers’ Liability. In general insurance, policies are written on two bases: ‘claims occurring’ and ‘claims made’. It is important to understand how your insurance policy is written as this will impact your cover.
A policy written on a ‘claims occurring’ basis will pay out for valid claims that arise out of loss or damage that actually happens during the policy period.
A policy written on a ‘claims made’ basis will pay out for valid claims made during the policy period, regardless of when the incident or alleged breach of duty actually occurred.
Professional indemnity insurance policies are usually written as part of a liability policy on a ‘claims made’ basis. This means that the insurer who is in place when the claim is made (not when the abuse happened) takes insurance responsibility.
Public liability insurance policies are usually written on a ‘claims occurring’ basis. This means that the insurer who was in place when the abuse occurred takes responsibility for the insurance liability.