You’ve probably seen the headlines. Another major university is facing a massive lawsuit, this time involving dozens of former football players and allegations of sexual abuse by a team doctor decades ago. It’s a heartbreaking and deeply disturbing story.
When I read news like this, my heart goes out to the victims. Their courage in coming forward is incredible. But as someone who has spent their career in the insurance world, my mind also immediately jumps to the massive, complex web of liability and coverage that sits just beneath a story like this.
It’s a stark reminder that for large institutions—universities, non-profits, school districts—the biggest risks aren't always fires or floods. Sometimes, they are deeply human failures that can surface years, or even decades, later. So, let's talk about what a situation like this means from an insurance and risk perspective, because it’s a powerful, if painful, lesson.
First, What’s Actually Happening?
Before we get into the insurance side, let's quickly recap the situation. According to reports, about thirty former Ohio State football players, including some who went on to the NFL, are joining a federal lawsuit against the university.
The lawsuit alleges that a team doctor engaged in sexual abuse against student-athletes for years. We're talking about events that happened a long time ago, but the impact is clearly still being felt today. This isn't just a PR nightmare for the university; it's a potential financial catastrophe and a massive legal battle.
The Billion-Dollar Question: Who Pays for This?
When you see a lawsuit of this magnitude, the first question is always about the money. Where do the funds for legal defense and potential multi-million-dollar settlements come from? For an institution the size of Ohio State, the answer almost always involves insurance.
A university isn't just buying a simple property policy. They're carrying a whole portfolio of liability coverages designed for exactly these kinds of "bet the farm" situations. Think of it like a series of safety nets, each designed to catch a different kind of fall.
Here are the likely players in a scenario like this:
- General Liability (GL): This is the workhorse policy for most organizations. It typically covers bodily injury and property damage. While it can be a starting point, these policies have often evolved to have specific exclusions for abuse and molestation, pushing the need for more specialized coverage.
- Directors & Officers (D&O) Liability: This policy protects the university's top brass—the board members and executives. If the lawsuit alleges that leadership knew (or should have known) about the abuse and failed to act, a D&O policy could be triggered to cover their personal liability and legal defense.
- Abuse and Molestation (A&M) Coverage: This is the big one. Because of high-profile cases over the years, many insurers now offer specific coverage for claims arising from sexual abuse or misconduct. These policies are expensive and come with strict requirements for background checks, training, and reporting protocols. They are designed specifically for this horrifying type of risk.
The university’s lawyers and their insurance carriers are almost certainly digging through policy documents right now, trying to figure out which policies apply and for how much.
A Wrinkle in Time: The Challenge of "Long-Tail" Claims
Here’s where it gets really complicated. The abuse in this case happened decades ago. This creates what we in the industry call a "long-tail claim."
Think of it like this: Imagine you get into a small fender bender in 1995 but don't realize your back is injured until 2024. Which car insurance policy pays the medical bills? The one you had in 1995, or the one you have today?
That’s the core problem here. The answer depends on the type of policy the university had at the time.
- Occurrence-Based Policies: If the university had an "occurrence" policy back in the 80s and 90s, that policy is on the hook for events that occurred during its term, no matter when the claim is filed. Finding these old policies and figuring out their coverage limits can be a massive archeological dig.
- Claims-Made Policies: If they had a "claims-made" policy, then the policy in effect when the claim is made (i.e., today) is the one that responds. These are more common now but were less so back then.
Untangling this is a huge legal and administrative headache. It often involves multiple insurance companies that may have provided coverage over many years, each with a different set of obligations.
The "Intentional Acts" Exclusion: A Major Hurdle
Now, let's talk about the elephant in the room. Nearly every insurance policy has an exclusion for intentional or criminal acts. After all, you can't intentionally burn down your house and expect your insurance to pay for it.
So, you might be thinking, "Well, sexual abuse is an intentional criminal act, so insurance won't cover it, right?"
Not so fast. This is one of the most hotly contested areas in insurance law.
The key is that the lawsuit isn't just against the doctor who allegedly committed the acts. It's against the university. The claim is that the institution was negligent. They allegedly failed to supervise their staff, ignored complaints, or created an environment where this abuse could happen.
That negligence is the potential "occurrence" that insurance might cover, not the abuse itself. The legal battle becomes about whether the university's failure to act was a covered event under their policies. It’s a subtle but incredibly important distinction, and it’s often where these cases are won or lost from an insurance perspective.
It's More Than Just the Payout
One final thing to remember is that the potential settlement is only part of the financial picture. The cost of defending a lawsuit like this is astronomical. We're talking about years of legal work, depositions, expert witnesses, and court fees that can easily run into the millions of dollars.
This is where the "duty to defend" clause in a liability policy becomes so vital. In many cases, the insurance company is obligated to pay for the legal defense, even if they ultimately don't cover the final judgment or settlement. For the university, this is a critical lifeline that allows them to even mount a defense in the first place.
Stories like this are a tragedy on a human level, first and foremost. But they also serve as a powerful reminder of why insurance and thoughtful risk management are so essential. It’s not just about buying a policy; it’s about creating systems and a culture that protects people. In the end, the best insurance claim is the one that never has to be filed.
