CFC has introduced a new Safeprotect Misconduct Liability (SML) product, aiming to fill a gap in coverage for sexual abuse and molestation (SAM) claims across North America.
The policy offers protection in cases where wrongful acts are committed by employees against third parties, or where there is a failure to supervise. It is written on a standalone, claims-made and reported basis, with excess coverage available across US and Canadian territories.
The launch reflects growing demand for SAM protection at a time when many organizations, particularly in the healthcare and education sectors, are being required by contracts or regulations to carry dedicated coverage. According to CFC, demand has outpaced available capacity, with many insurers limiting their appetite for such sensitive risks or offering coverage only as part of broader employment practices liability (EPLI) products.
Lee Abraham, who recently joined CFC as senior SML underwriter, will lead the new line. He brings two decades of experience in misconduct and employment practices liability, including building and managing a $50 million portfolio at Tysers.
Abraham said the increase in claims, combined with heightened public discourse and new legislative protections, has made it essential for insurers to provide solutions that go beyond traditional policy structures. He said the offering is intended to give organisations greater confidence that they have both financial cover and access to expert resources should an incident occur.
To support its product, CFC has partnered with Praesidium, a global expert in abuse prevention and crisis response. Policyholders will be able to access background screening services, assistance with internal policies and procedures, and training resources such as webinars focused on abuse prevention. Coverage also extends to costs related to reputational management, including the retention of public relations specialists, as well as expenses incurred attending court or mediation proceedings.
While some major carriers have expanded their EPLI products to include limited SAM extensions, capacity for standalone misconduct liability has been scarce, with most markets cautious about the severity and reputational risks tied to claims.
