Abuse & Molestation Coverage: The Toughest Conversation

Let’s be honest: this isn’t an easy topic. Nobody joins a nonprofit board thinking, “I can’t wait to talk about abuse and molestation insurance.” It’s uncomfortable and heavy. And for many leaders, it feels almost disloyal to even bring it up, as if talking about it might somehow cast a shadow over the good work your organization is doing.

But here’s the truth: if your nonprofit serves children, youth, or other vulnerable groups, this conversation isn’t optional. It’s essential. Pretending the risk doesn’t exist doesn’t protect anyone. Having a plan does.

Why This Coverage Matters

Abuse and molestation claims are some of the most devastating a nonprofit can face, not just financially but emotionally and reputationally. We’re talking about claims that can bankrupt organizations, destroy community trust, and, most importantly, leave survivors without the support they deserve.

Insurance alone isn’t the answer, but it is a critical safety net. It ensures that if the worst happens, your organization can still provide resources for survivors and keep its mission alive.

Claims-Made vs. Occurrence: Know the Difference

Here’s where boards often get tripped up: the fine print. Abuse and molestation coverage is usually written on a claims-made basis, which means the policy only responds if both the alleged abuse and the claim are made while the coverage is active. If your board lets the policy lapse, you might lose coverage for past incidents that surface later.

On the other hand, occurrence coverage (rarer in this space) protects against incidents that happened during the policy period, even if claims are reported years later. Knowing which type you have and making sure your board understands the gap is critical.

Beyond the Policy: Building a Trauma-Informed Culture

Insurance should always be paired with prevention. Boards should push for:

• Thorough background checks for staff and volunteers.

• Clear supervision plans, especially in one-on-one situations.

• Trauma-informed training, so staff know how to respond if concerns are raised.

• Safe reporting channels that empower survivors and protect whistleblowers.

The goal isn’t to check a compliance box. It’s to create an environment where harm is less likely to occur and where, if it does, people feel safe speaking up.

The Board’s Role

As a board member, your job isn’t to know every clause in the policy. Your job is to ask the hard questions. Do we have coverage? Is it claims-made or occurrence? Are our prevention policies strong enough? Are we giving survivors the dignity and support they need if the unthinkable happens?

These aren’t comfortable conversations. But leading a nonprofit isn’t about avoiding discomfort. It’s about doing what’s right, even when it’s hard.

Because at the end of the day, abuse and molestation coverage isn’t about policies or premiums. It’s about people. And making sure your organization is prepared to protect them always.