Changes to statutes of limitations and recent court decisions are making sexual misconduct liability increasingly difficult to underwrite. In light of anticipated market volatility, we’re taking steps to limit our future exposure to sexual misconduct liability in commercial lines policies.
Coming coverage changes for Custom and Express policies
For new business and endorsements to existing business, on policies with effective dates July 1, 2024, or later, we will no longer offer sexual misconduct liability coverage. Beginning Aug. 1, 2024, a sexual misconduct exclusion will automatically attach to new policies.
For existing business, on policies with renewal dates Oct. 1, 2024, or later, we will be removing sexual misconduct coverage.
For policies with forms that specifically include sexual misconduct liability coverage, policyholders will receive a notice advising them of the change in coverage.
For policies without sexual misconduct liability coverage forms, policyholders will receive a notice letting them know we’re attaching a sexual misconduct exclusion form.
These changes apply to both primary (BOP and general liability) and umbrella policies.
*Note that renewing policies with sexual misconduct liability coverage will continue to be referred to underwriting to ensure they meet underwriting guidelines.
