Statute of Limitations Reforms Are Reshaping Sexual Abuse and Molestation Liability Coverage

In recent years, states across the country have enacted significant reforms to the statute of limitations (SOL) for sexual abuse and molestation claims. These legal changes are not just affecting victims and survivors—they are fundamentally reshaping how businesses, nonprofits, schools, churches, and other organizations must approach liability coverage.

What’s Changing?

Traditionally, statutes of limitations set strict deadlines for when a victim could file a claim. Many states have now extended—or even eliminated—those deadlines, creating what are often referred to as “lookback windows.” These reforms allow survivors of abuse, even decades after the alleged incident, to bring lawsuits forward.

While these reforms provide long-overdue access to justice, they also expose organizations to liabilities they may have never anticipated. Even institutions that believed potential claims were long closed are suddenly finding themselves vulnerable.

How This Impacts Insurance Coverage

For organizations, the changes create immediate challenges:

• Retroactive Exposure: Insurance policies written years ago may no longer provide adequate protection—or may specifically exclude sexual abuse and molestation (SAM) coverage.

• Coverage Gaps: Carriers are responding to the increased risk by limiting coverage, tightening exclusions, or requiring specialized policies.

• Claims Management: A rise in reopened claims can lead to higher defense costs, settlements, and judgments—sometimes reaching millions of dollars.

This evolving landscape demands a proactive insurance strategy. Organizations cannot assume that past protections remain valid. Instead, they must carefully review existing policies and consider supplemental or specialized liability coverage designed for sexual abuse and molestation risks.

Who Is at Risk?

Virtually any entity that interacts with minors or vulnerable populations could be exposed, including:

• Youth organizations and camps

• Religious institutions

• Schools and universities

• Healthcare and home care providers

• Nonprofits and community groups

Even businesses that do not primarily serve these populations may face unexpected claims.

The Path Forward: Protecting Your Organization

As statutes of limitations reform accelerates, the cost of being unprepared is simply too great. Proactive organizations are:

1. Reviewing Policies – Evaluating whether current liability coverage addresses SAM risks in light of expanded claim windows.

2. Closing Gaps – Securing specialized endorsements or standalone policies for sexual abuse and molestation coverage.

3. Updating Protocols – Pairing strong coverage with robust prevention, training, and reporting systems to reduce exposure.

Final Thought

The legal environment is shifting rapidly. Statute of limitations reforms are not going away—they’re expanding. Organizations must act now to understand their risk and ensure they are fully protected.

Let us know if you have any questions: brokers@pelotonins.com