Child Victims Act leads to insurance woes

NEW YORK (NY)
City & State NY

February 10, 2020

By Kay Dervish

Some institutions facing or at risk of facing child sex abuse lawsuits have lost coverage.

About six months into the implementation of the Child Victims Act, more than 1,400 child sex abuse cases have been filed in New York. The law – which provides a one-year window for people to bring forward such lawsuits regardless of the statute of limitations – has resulted in a flood of lawsuits against Catholic Church in particular. The Roman Catholic Diocese of Rochester filed for bankruptcy in the aftermath of the law’s implementation – which victims’ advocates argued allowed it to bypass scrutiny for the alleged crimes – with the Buffalo Diocese expected to follow suit soon.

But the law’s financial and logistical challenges have affected many other institutions, such as schools and nonprofits, who have faced increased insurance costs and difficulties finding old insurance providers as they confront lawsuits regarding crimes dating back decades. Some have lost coverage for sexual abuse altogether.

“What’s happening is that insurance policies from this point forward are excluding this risk from the policy,” Robert Chesler, an attorney at Anderson Kill who represents insurance policyholders, told City & State.

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