In recent years, more school districts have started requiring Sexual Misconduct and Molestation Liability insurance — often referred to simply as “SML” or “SAM” — from all contractors, even those who don’t work directly with children. This growing trend has left many service providers uncertain about the need for this type of insurance and how to go about getting it.
In this post, we’ll break down what abuse and molestation insurance actually covers, why it’s being required more often, and what steps you can take to secure the right policy for your business. Whether you work in child services, transportation, custodial, or healthcare understanding these requirements is key to maintaining your contracts and protecting your company.
What Is Sexual Misconduct and Molestation Insurance?
Sexual Misconduct and Molestation Insurance is a specialized liability policy designed to protect businesses from allegations involving sexual misconduct or inappropriate behavior. It provides essential financial protection in situations that can be both emotionally and financially devastating.
More and more general liability insurance policies specifically exclude this type of coverage, so it’s important to check your current policy documents for language that may leave you exposed. You’ll want to look for any exclusions related to sexual abuse or molestation — these are common and may require you to seek a separate or endorsed policy.
Key features of Abuse coverage often include:
- Legal defense costs: Covers attorney fees, court costs, and related expenses if your business is named in a claim.
- Wrongful Act: includes cover for Negligent Employment, Supervision or Training.
- 24/7 Prevention & Crisis Response: included with payment of premium to help manage public relations and reputational fallout.
For contractors working in or around school environments, this coverage isn’t just about ticking a box — it’s about protecting your employees, your clients, and your business reputation.
Why Are School Districts Requiring This Coverage?
School districts are prioritizing student safety more than ever before — and rightly so. Abuse and molestation insurance has become a key part of a broader risk management approach aimed at creating safe, accountable environments. Even contractors with minimal student contact may still be on school grounds, making them part of the overall safety equation.
Here’s why many districts are now requiring this coverage:
- Student safety comes first: This coverage reinforces a district’s commitment to providing a safe space for students.
- Financial protection: Allegations can lead to costly legal battles. Insurance coverage shields both the contractor and the school district from potential financial fallout.
- Proactive risk management: Districts are thinking ahead, aiming to eliminate gaps in liability by ensuring all vendors are covered, regardless of direct contact with students.
- Regulatory compliance: New state and federal guidelines often emphasize preventative measures and insurance protections.
- Public trust: Districts want to reassure parents and the community that they’re taking every possible step to prevent and address any potential issues.
- Unseen exposure: Even vendors who don’t work with students can be present during school hours — janitorial staff, HVAC technicians, or cafeteria workers — all carry some level of risk.
By requiring this insurance, school districts are taking a comprehensive approach to safety — and they expect the same commitment from the vendors and contractors they work with.
What To Do When You’re Asked to Carry Abuse and Molestation Coverage
If a school district requires you to carry abuse and molestation insurance, don’t panic. With the right guidance, getting the appropriate policy can be a straightforward process.
Here’s a step-by-step roadmap to help you comply:
1. Review the Requirements
Carefully read through the district’s insurance guidelines. Note coverage limits, specific wording, or required endorsements. If anything’s unclear, ask — it’s better to clarify upfront than to find out your coverage doesn’t meet their standards.
2. Evaluate Your Current Coverage
Look through your existing general liability policy to see if there’s any abuse and molestation protection already included (spoiler: in most cases, it’s excluded). Identify any gaps between your current policy and the district’s requirements.
3. Talk to an Expert
Contact and work with an experienced insurance broker who understands this type of coverage. They’ll guide you through the process and help checks all the boxes, and if the market allows, they’ll gather multiple quotes so you can compare options.
4. Customize and Bind Your Policy
Make sure the policy you select includes all necessary endorsements and limits. Double-check that the wording aligns with the school district’s exact requirements. Once the policy is finalized, update your documentation.
5. Provide Proof of Insurance
Send a Certificate of Insurance (COI) to the school district showing your new coverage. Make sure the COI is current, accurate, and includes all requested details.
6. Stay Current
Regulations and school district requirements can change, so be proactive. Review your insurance coverage annually and stay informed on any updates that may affect your compliance.