The Changing Landscape of Higher Education Insurance Amid Sexual Misconduct Lawsuits

As sexual misconduct lawsuits against colleges continue to increase in frequency and severity, the financial and reputational risks associated with such claims have become a major concern for both insurance companies and institutions of higher education. In this article, we'll explore the evolving relationship between insurers and colleges, and how the landscape of higher education insurance is changing as a result.

The Penn State Precedent:

The 2012 sexual abuse scandal involving former assistant football coach Jerry Sandusky at Pennsylvania State University set a precedent for the way insurers and colleges would approach sexual misconduct claims in the years to come. When dozens of victims filed lawsuits against the university, Penn State sued its insurer, Pennsylvania Manufacturers’ Association Insurance, over coverage. The ensuing court battle resulted in a ruling that narrowed the scope of general liability policies to exclude coverage for sexual abuse.

Insurers Opting for Claims-Based Policies:

With the Penn State case still fresh in their minds, many insurers have become increasingly wary of higher education coverage and are opting for claims-based policies to mitigate their risks. This type of policy provides more general protection for the insurer than a specific exclusion for sexual abuse. For example, in the case of Baylor University, Lexington Insurance is arguing that the university's policies did not cover sexual misconduct between 2012 and 2016, when the majority of the alleged sexual abuse occurred.

Colleges Creating Captive Insurance Companies:

As outside insurance companies become more cautious about providing coverage for higher education institutions, many colleges are turning to captive insurance companies as an alternative. A captive insurance company is a separate legal entity, but the university is involved in its main operations, including creating policies and managing claims. For example, Michigan State University created Lysander Series after settling a lawsuit with the victims of Larry Nassar, a former university sports doctor who abused women and girls.

Insurance Companies Providing Title IX Training:

To further minimize their risk, insurance companies are investing in training colleges on Title IX policies, which govern how institutions must respond to reports of sexual misconduct. This training helps colleges to understand the requirements of their insurance policies, and to take appropriate steps to mitigate risk. It's crucial for Title IX coordinators to work closely with their institution's finance and administration departments to ensure that they have the necessary insurance coverage in place.

Conclusion:

Sexual misconduct lawsuits continue to be a growing concern for colleges and insurance companies alike. As the financial and reputational risks associated with these claims become increasingly severe, it's important for institutions of higher education to carefully consider their insurance coverage options, and to work closely with their insurance providers to ensure that they have adequate protection in place. By taking proactive steps to address these risks, colleges can help to protect themselves, their students, and their reputations in the years to come.

EducationLawyers.com

Unfortunately, sexual misconduct in higher education is a pervasive problem, and it's essential for students and parents to understand their rights and how to protect themselves. Here are some important things to keep in mind:

1. Know your Title IX rights: Title IX is a federal law that prohibits sex discrimination in education programs or activities that receive federal funding. This includes sexual harassment, sexual assault, and other forms of sexual misconduct. It's important for students and parents to understand their rights under Title IX, including the right to file a complaint, the right to an investigation, and the right to appeal.

2. Know the signs of sexual misconduct: It's crucial for students and parents to know the signs of sexual misconduct, including unwanted sexual advances, physical contact, and verbal or written comments of a sexual nature. Students and parents should also be aware of the signs of stalking, dating violence, and domestic violence.

3. Know how to report sexual misconduct: If you or someone you know has experienced sexual misconduct, it's important to know how to report it. This can involve filing a complaint with the school, filing a police report, or both. Students and parents should also know their options for confidential reporting, such as reporting to a counselor or health care provider.

4. Know your options for accommodations: If a student has experienced sexual misconduct, they may need accommodations to help them continue their education. This could include changes to their class schedule, housing arrangements, or other academic accommodations. Students and parents should be aware of their options for accommodations and how to request them.

5. Know your legal options: If a student has experienced sexual misconduct and their school has failed to address it adequately, they may have legal options. This could include filing a complaint with the Department of Education's Office for Civil Rights, filing a lawsuit against the school, or both. It's important for students and parents to consult with an experienced education lawyer to understand their legal options.

By understanding their rights and how to protect themselves, students and parents can help prevent sexual misconduct and ensure that schools are held accountable for addressing it appropriately.

In addition to knowing your legal options, it's essential to seek guidance from an experienced education lawyer who can help you navigate the complexities of sexual misconduct cases in higher education. A skilled lawyer can provide you with legal advice, represent you in legal proceedings, and help you understand your rights and options.

If you or someone you know has experienced sexual misconduct in higher education, don't hesitate to reach out to a lawyer who specializes in education law. At EducationLawyers.com, our team of experienced lawyers is dedicated to helping students and parents protect their rights and ensure that schools are held accountable for addressing sexual misconduct. Contact us today for a consultation.