A new federal law eliminates the statute of limitations for victims of sexual abuse for civil cases. Previously, victims of sexual abuse had until they are 28 years old, or 10 years from the abuse and/or injury, to file a civil lawsuit.
Insurance companies estimate their expenses for future claims, and the statute of limitations was one factor used for this analysis. Now with the statute of limitations removed from sexual abuse civil claims, many insurance companies either no longer offer this coverage or have put additional coverage requirements in place.
This change affects many organizations in the nonprofit sector: religious, educational, sports and many more. It is critical for nonprofit organizations to have this coverage in place when facing allegations of sexual abuse.
