Essential Insurance Insights: Critical Topics for Youth & Community Service
Meredith Bunnel has over 17 years of experience in law, public policy, insurance, and risk management. She holds a Juris Doctor from the University of Pittsburgh School of Law, a Master of Public Policy from Duke University, a B.A. from the College of William & Mary, and is a Certified Praesidium Guardian. Before joining Praesidium, Meredith served as a Deputy District Attorney specializing in domestic violence and child abuse prosecution, as court-appointed counsel for youth in the juvenile justice system, and as counsel for families and guardians in the Dependency & Neglect system. She later became Senior Consultant and then Director of Consulting at The Redwoods Group, managing relationships with more than 500 client organizations and leading hundreds of site visits, leadership presentations, and trainings on abuse prevention, aquatic safety, leadership coaching, and enterprise risk management.
In a time when organizations dedicated to serving youth and vulnerable community members are more vital than ever, ensuring the organization’s own long-term stability and protection is paramount. A crucial, often challenging, aspect of this stability is securing adequate Sexual Abuse or Molestation Liability (SML) coverage.
The insurance market for SML has been “hardening”— coverage is becoming more limited, more expensive, and harder to obtain. This trend directly impacts the ability of nonprofits, schools, religious organizations, youth sports leagues, camps, and other community-serving entities to operate with confidence and financial security.
Praesidium’s 2024 Insurance Carrier Benchmarking report offers critical, timely data on this evolving landscape. By surveying insurance carriers and, for the first time, the organizations they serve, the benchmarking report provides actionable insights into what the industry requires and what the future may hold. This information is vital for you as you strategically manage your risk and safeguard your mission – serving your community today and ensuring you can continue to serve for future generations.
What are the Insurance Carriers Telling Us?
Praesidium’s 2024 report highlights several significant shifts in the insurance industry’s approach to SML coverage. Understanding this environment can help your organization successfully navigate the underwriting process:
Coverage is Tightening, and Limits are Low
While most carriers (88%) still offer SML coverage within their primary policy limits, the financial ceiling for coverage remains low:
- 71% of carriers offer $5 million or less in limits.
- Only 12% offer $10 million or more.
This restricted capacity means organizations with high exposure or complex operations must work harder to secure adequate protection. Furthermore, 41% of carriers are now offering SML as a standalone product, signaling a move away from simply bundling it into standard general liability packages.
Underwriting Requirements are Getting Stricter
The most critical finding for any organization seeking SML coverage is the clear and rising demand for robust risk control practices.
- 94% of carriers now have defined underwriting requirements addressing an insured’s abuse prevention practices (up from 82% in 2022).
- The single biggest shift was in the area of Monitoring & Supervision. In 2024, 88% of carriers reported defined requirements for how an organization monitors and supervises high-risk situations—a significant jump from 67% in 2022.
In short, simply having a policy is no longer enough. Carriers are demanding proof of effective, proactive implementation of risk control measures.
Market Forecast: Increased Scrutiny and Potential Declinations
Looking ahead, carriers largely project a continued hardening of the market over the next three years:
- 59% expect the SML market to harden further.
- 71% project that underwriting requirements will continue to increase, leading to greater scrutiny and higher standards for checks and training.
Alarmingly, some carriers expect to decline writing SML coverage for specific sectors in the near future. This includes:
- 38% expecting to decline SML in Childcare.
- 25% expecting to decline in Day Camps, Foster Care, Overnight Camps, and Youth Sports.
This potential retreat by carriers means that organizations in these sectors need to focus now on strengthening their safety protocols to remain insurable.
One Pathway to a Safer, More Insurable Future
Insurers shared that organizations willing to invest in prevention can improve their position in the insurance purchasing process. One way to demonstrate that commitment to safety is through accreditation.
When carriers were asked about the possibility of an outside expert publicly accrediting an organization as meeting or exceeding best practices in abuse prevention, the response was overwhelmingly positive: 94% said yes, this status would positively impact an organization’s access to SML coverage.
Accreditation could lead to tangible benefits, as carriers were more likely to:
- Offer a lower premium (53%).
- Offer higher limits (60%).
- Be more likely to offer any SML coverage at all (93%).
Your Call to Action
The 2024 benchmarking data sends a clear message: The responsibility for managing abuse risk is increasingly shared, and underwriters are looking for partners in prevention, not just customers. To effectively manage your insurance costs and access necessary coverage, your organization should:
- Deepen your understanding of the new, stricter underwriting requirements.
- Rigorously implement best practices, particularly in Monitoring and Supervision.
- Proactively share your safety story by documenting your culture of prevention and considering third-party accreditation to demonstrate your commitment to safeguarding those you serve.
Prevention is possible, and by aligning your internal practices with industry best practices and enhanced expectations, you can better protect your mission and the people who rely on you.
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For more, download Praesidium’s 2024 Insurance Carrier Benchmarking Report for free at this link. Praesidium has a variety of services and resources available, including articles specifically for leaders considering an upcoming insurance renewal: Up for SML Renewal? Tell Your Safety Story. Or simply find out more about Praesidium by visiting our site.
Interested in how tools like accreditation can help your organization? Learn more about the importance of third-party assessments, details about Praesidium Accreditation, and how Praesidium can support your organization as you continue to deepen your efforts to keep children, vulnerable adults, and your community safe.
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Jesus’ words still echo through time: “Let the little children come to me, and do not hinder them, for the kingdom of heaven belongs to such as these” (Matthew 19:14). These words were not just a gentle invitation—they were a command. A command to the Church to make room, to open arms, to clear the way. Yet in too many places, we’ve allowed hindrances to remain. We’ve allowed silence, fear, neglect, and even abuse to take root where there should be protection, joy, and peace. - Insurance and Accountability (Part 2): A Return to the Biblical Principles of Stewardship and Justice
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