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Protect the Vulnerable: Helping Schools Stop Sexual Misconduct

In addressing other exposures, schools may inadvertently increase the risk for sexual misconduct.
By: | April 2, 2018 • 6 min read

Stories of sexual impropriety have dominated headlines recently, as revelations of abuse by those in positions of power take center stage. While misconduct isn’t new, the societal spotlight is. And it has widened its scope beyond Hollywood to shine a light on sexual misconduct in athletics, workplaces, and schools.

“Today you are seeing more victims coming together, standing up and fighting back,” said Susan Kostro, Chief Underwriting Officer, Public Entities Practice, Liberty Mutual Insurance. “But one population may have a harder time finding its voice and is at significant risk for abuse: schoolchildren. “

An investigation by The Associated Press determined between 2011 and 2015, there were about 17,000 reported incidents of sexual abuse committed by fellow students in the U.S. Another report by The Boston Globe found that, since 1991, at least 67 New England private schools have fielded accusations that staffers sexually abused or harassed more than 200 students, resulting in at least 90 lawsuits.

“Schools are charged with providing a safe environment for students. When they fail, the consequences are severe,” said Steve Deig, Technical Director of Risk Control Services, Liberty Mutual Insurance. In addition to being responsible for the physical and emotional wellbeing of its students, schools must also protect their reputations and bottom lines.

To protect their students and themselves, schools need to understand their exposures to potential sexual misconduct, how to mitigate those risks, and how to respond if allegations arise.

Identifying the Exposure

There are two types of sexual misconduct and molestation (SMM) most common to the school environment — student against student, and staff against student.

“In either situation, the victims are usually among the most vulnerable — the youngest students and sometimes, those with disabilities,” Kostro said. “In other words, the students that need guidance and protection the most.”

Misconduct can take many forms, including staring or leering, suggestive gestures, “accidental” physical contact, bullying, sexual jokes or gossip, and outright offers or requests for sexual favors. The prevalence of smartphones, social media and texting makes it ever more difficult to identify when these actions are taking place. By going online, sexual predators can more easily take their behavior out of a public setting and away from the watchful eyes of peers, administrators, and parents.

“There are a lot more wrinkles compared to 10 to 15 years ago,” Deig said. “Today, educators use technology such as texting and social media professionally, but it also opens the door for inappropriate contact with students. And monitoring digital communications and enforcing safe school policies can often be problematic for districts.”

In addressing other exposures, schools may inadvertently increase the risk for sexual misconduct.  For instance, to protect staff and students against an active shooter, many schools permanently cover interior classroom doors and windows to minimize a potential shooter’s line of sight—even when a school is not undergoing an active shooter drill.

“But you can’t supervise what you can’t see,” Kostro said. By reducing visibility, schools may create opportunities for inappropriate one-on-one student/staff encounters, or horseplay and potential violence among unsupervised students if windows and doors remain covered after a drill.

Mitigating the Risk

The best approach to minimizing the risk of sexual misconduct is to be proactive and remove opportunities in the first place.

Keeping windows clear is a start. Having monitors walk the halls — checking empty classrooms, stairwells, cafeterias, parking lots, and recreational fields — also helps to increase natural surveillance and curtail any chance of improper behavior. Social media and technology policies can also delineate what are considered appropriate channels and types of communication between teachers and students.

But it all begins with thorough effective screening and hiring practices for not only staff but also volunteers to keep predators out of schools to begin with.

“One of the big problems we see is that some schools do not conduct background checks consistently,” Kostro said. “You want to do everything that the law allows you to do in terms of applicant screening. The bar for what is considered the appropriate level of due diligence has gone up. What was adequate 10 years ago is not enough today.”

As liability increases, so have claim settlements.

“If allegations are brought against a school accusing it of negligent hiring, improper training and supervision, failure to report, negligent retention—consequences can reach into the millions of dollars,” she said.

In addition to stringent screening and hiring practices, schools need clear incident-reporting policies that align with state and local regulations.

“Every jurisdiction has a different definition of child sexual abuse and different reporting rules,” Deig said. “The laws are designed to over-report. If you fail to report an incident in a timely manner, there could be repercussions against the school and individual in both civil and criminal courts.”

All members of faculty and staff should be trained not only on school policies that can affect child sexual abuse but also on jurisdictional requirements so they know how to identify improper behavior and what to do about it. Some may be hesitant to report potential abuse based on a gut feeling or suspicion, so a well-defined reporting method is critical for policies to be effective.

“Don’t take allegations lightly,” Kostro said. “Err on the side of the safety of the student. Investigate every claim and report every allegation or suspicion of abuse. By taking action in good faith, school officials are helping to protect students and can help build a defensible position should there be a claim.”

But even the most careful institution can’t prevent every incident. To that end, it’s imperative for schools to check their insurance coverage.

Pinpoint the Right Insurance Partner

Sexual misconduct and molestation (SMM) coverages vary from carrier to carrier, so it’s important to partner with an insurer that knows the local legal and regulatory landscape and understands the unique exposures of schools and school districts.

Because compliance is so important, the right insurer also should be able to provide guidance to legal resources and training services.

“A lot of liability issues and exposures intertwine with sexual misconduct. While we do provide training, we can also recommend the best resources that bring in legal counsel to advise on state regulations and how to respond to specific situations. Typically, the state’s Department of Education or Department of Child Services can provide excellent school specific and state-specific training on reporting and investigation procedures,” Kostro said.

In addition to its own sexual misconduct coverage, a school should require third-party contractors who have access to and come in contact with children to hold similar policies regarding sexual misconduct exposures. Standard general liability policies may not include coverage for such claims.

“Our SMM coverage is designed specifically for schools, and our claims professionals who are dedicated to youth-serving organizations are well-versed in the exposure. The same goes for our assigned defense counsel,” Kostro said.

Liberty Mutual also provides school teacher E&O and umbrella coverage in addition to its SMM policies.

“From underwriting a product coverage to claims and defense, this is an exposure where we’ve been developing expertise since we launched the Public Entities practice,” she said.

“Through our agents and brokers, the Liberty Mutual team has the knowledge around this exposure to understand schools’ concerns, advise them on where they can limit their risk, and ultimately, help advocate for them when issues arise.”

To learn more, visit https://business.libertymutualgroup.com/business-insurance/industries/public-entity-insurance-coverage.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Liberty Mutual Insurance. The editorial staff of Risk & Insurance had no role in its preparation.




Liberty Mutual Insurance offers a wide range of insurance products and services, including general liability, property, commercial automobile, excess casualty and workers compensation.

More from Risk & Insurance

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Risk Report: Manufacturing

More Robots Enter Into Manufacturing Industry

With more jobs utilizing technology advancements, manufacturing turns to cobots to help ease talent gaps.
By: | May 1, 2018 • 6 min read

The U.S. manufacturing industry is at a crossroads.

Faced with a shortfall of as many as two million workers between now and 2025, the sector needs to either reinvent itself by making it a more attractive career choice for college and high school graduates or face extinction. It also needs to shed its image as a dull, unfashionable place to work, where employees are stuck in dead-end repetitive jobs.

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Added to that are the multiple risks caused by the increasing use of automation, sensors and collaborative robots (cobots) in the manufacturing process, including product defects and worker injuries. That’s not to mention the increased exposure to cyber attacks as manufacturers and their facilities become more globally interconnected through the use of smart technology.

If the industry wishes to continue to move forward at its current rapid pace, then manufacturers need to work with schools, governments and the community to provide educational outreach and apprenticeship programs. They must change the perception of the industry and attract new talent. They also need to understand and to mitigate the risks presented by the increased use of technology in the manufacturing process.

“Loss of knowledge due to movement of experienced workers, negative perception of the manufacturing industry and shortages of STEM (science, technology, engineering and math) and skilled production workers are driving the talent gap,” said Ben Dollar, principal, Deloitte Consulting.

“The risks associated with this are broad and span the entire value chain — [including]  limitations to innovation, product development, meeting production goals, developing suppliers, meeting customer demand and quality.”

The Talent Gap

Manufacturing companies are rapidly expanding. With too few skilled workers coming in to fill newly created positions, the talent gap is widening. That has been exacerbated by the gradual drain of knowledge and expertise as baby boomers retire and a decline in technical education programs in public high schools.

Ben Dollar, principal, Deloitte Consulting

“Most of the millennials want to work for an Amazon, Google or Yahoo, because they seem like fun places to work and there’s a real sense of community involvement,” said Dan Holden, manager of corporate risk and insurance, Daimler Trucks North America. “In contrast, the manufacturing industry represents the ‘old school’ where your father and grandfather used to work.

“But nothing could be further from the truth: We offer almost limitless opportunities in engineering and IT, working in fields such as electric cars and autonomous driving.”

To dispel this myth, Holden said Daimler’s Educational Outreach Program assists qualified organizations that support public high school educational programs in STEM, CTE (career technical education) and skilled trades’ career development.

It also runs weeklong technology schools in its manufacturing facilities to encourage students to consider manufacturing as a vocation, he said.

“It’s all essentially a way of introducing ourselves to the younger generation and to present them with an alternative and rewarding career choice,” he said. “It also gives us the opportunity to get across the message that just because we make heavy duty equipment doesn’t mean we can’t be a fun and educational place to work.”

Rise of the Cobot

Automation undoubtedly helps manufacturers increase output and improve efficiency by streamlining production lines. But it’s fraught with its own set of risks, including technical failure, a compromised manufacturing process or worse — shutting down entire assembly lines.

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More technologically advanced machines also require more skilled workers to operate and maintain them. Their absence can in turn hinder the development of new manufacturing products and processes.

Christina Villena, vice president of risk solutions, The Hanover Insurance Group, said the main risk of using cobots is bodily injury to their human coworkers. These cobots are robots that share a physical workspace and interact with humans. To overcome the problem of potential injury, Villena said, cobots are placed in safety cages or use force-limited technology to prevent hazardous contact.

“With advancements in technology, such as the Cloud, there are going to be a host of cyber and other risks associated with them.” — David Carlson, U.S. manufacturing and automobile practice leader, Marsh

“Technology must be in place to prevent cobots from exerting excessive force against a human or exposing them to hazardous tools or chemicals,” she said. “Traditional robots operate within a safety cage to prevent dangerous contact. Failure or absence of these guards has led to injuries and even fatalities.”

The increasing use of interconnected devices and the Cloud to control and collect data from industrial control systems can also leave manufacturers exposed to hacking, said David Carlson, Marsh’s U.S. manufacturing and automobile practice leader. Given the relatively new nature of cyber as a risk, however, he said coverage is still a gray area that must be assessed further.

“With advancements in technology, such as the Cloud, there are going to be a host of cyber and other risks associated with them,” he said. “Therefore, companies need to think beyond the traditional risks, such as workers’ compensation and product liability.”

Another threat, said Bill Spiers, vice president, risk control consulting practice leader, Lockton Companies, is any malfunction of the software used to operate cobots. Then there is the machine not being able to cope with the increased workload when production is ramped up, he said.

“If your software goes wrong, it can stop the machine working or indeed the whole manufacturing process,” he said. “[Or] you might have a worker who is paid by how much they can produce in an hour who decides to turn up the dial, causing the machine to go into overdrive and malfunction.”

Potential Solutions

Spiers said risk managers need to produce a heatmap of their potential exposures in the workplace attached to the use of cobots in the manufacturing process, including safety and business interruption. This can also extend to cyber liability, he said.

“You need to understand the risk, if it’s controllable and, indeed, if it’s insurable,” he said. “By carrying out a full risk assessment, you can determine all of the relevant issues and prioritize them accordingly.”

By using collective learning to understand these issues, Joseph Mayo, president, JW Mayo Consulting, said companies can improve their safety and manufacturing processes.

“Companies need to work collaboratively as an industry to understand this new technology and the problems associated with it.” — Joseph Mayo, president, JW Mayo Consulting

“Companies need to work collaboratively as an industry to understand this new technology and the problems associated with it,” Mayo said. “They can also use detective controls to anticipate these issues and react accordingly by ensuring they have the appropriate controls and coverage in place to deal with them.”

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Manufacturing risks today extend beyond traditional coverage, like workers’ compensation, property, equipment breakdown, automobile, general liability and business interruption, to new risks, such as cyber liability.

It’s key to use a specialized broker and carrier with extensive knowledge and experience of the industry’s unique risks.

Stacie Graham, senior vice president and general manager, Liberty Mutual’s national insurance central division, said there are five key steps companies need to take to protect themselves and their employees against these risks. They include teaching them how to use the equipment properly, maintaining the same high quality of product and having a back-up location, as well as having the right contractual insurance policy language in place and plugging any potential coverage gaps.

“Risk managers need to work closely with their broker and carrier to make sure that they have the right contractual controls in place,” she said. “Secondly, they need to carry out on-site visits to make sure that they have the right safety practices and to identify the potential claims that they need to mitigate against.” &

Alex Wright is a U.K.-based business journalist, who previously was deputy business editor at The Royal Gazette in Bermuda. You can reach him at [email protected]