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Insurance Coverage for Multiple Acts of Sexual Abuse

What constitutes a separate "occurrence"?

TIG Insurance Company v. YMCA 172 S.W.3d 652 (Tex. App. 2005)

Background. When church leaders learn that a young child has been sexually molested by an employee or volunteer worker, other victims often emerge. Why? Because pedophiles are both predatory and promiscuous. The existence of multiple victims raises important questions regarding the amount of insurance coverage that is available, as a recent case illustrates.

Facts. In the summer of 1999 a counselor at a YMCA summer youth camp allegedly sexually and physically assaulted six children attending the camp. The parents of the children sued the YMCA for negligent hiring practices. Three of the lawsuits were collectively settled for $6 million, with YMCA's liability insurer contributing $1 million towards the settlement.

A question arose as to the liability of YMCA's insurer for the remaining three lawsuits. The YMCA's insurance policy contained ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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Posted:
  • August 1, 2006

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