Issues & Answers Special Advertising Section: April 2019

Issues & Answers: Protecting Children

Andy Shockey, an assistant vice president for Philadelphia Insurance Cos. said the insurance industry is shrinking capacity for sexual abuse and molestation coverage. “We are seeing that being driven by the claim settlements that a few short years ago would have been an event of several hundreds of thousands of dollars and today it can be a multimillion dollar claim situation,” he said. The following are excerpts of an interview.

Andy Shockey

Andy Shockey
Assistant Vice President
Philadelphia Insurance Cos.

“When it comes to abuse and molestation, we feel that the hiring process is an excellent place for those risk strategies to start.”


At a Glance

  • On-site risk management consultations.
  • Proprietary online training and services.
  • Partnerships with leading risk reduction organizations.




What are the issues that agencies face when it comes to sexual abuse and molestation coverage?

The most prevalent is capacity of this coverage in the marketplace. It’s shrinking from just availability in general, to the actual limits that are available for purchase and consideration. That along with the terms and the conditions of the policies that come with the coverage when it is provided.

What’s driving the big change in the landscape?

There are several factors. One of them is news coverage, as the media has gravitated to these stories over the years. You also are seeing an ever-evolving legislative environment, both at the federal and state level. Finally, you will see the plaintiffs’ bar has been drawn to these situations, and that has, of course, increased the jury awards.

What is PHLY doing as a result of the need for sexual abuse and molestation coverage?

We’re continuing to educate our agents and our policyholders on strategies that they can reasonably undertake to reduce the potential and raise the barrier to this event happening in their business. One such example is consulting with their clients on their hiring practices. There are things that can reasonably be done that can send the right signal to what the organization is about. First and foremost, it’s about protecting the children they serve. When it comes to abuse and molestation, we feel that the hiring process is an excellent place for those risk strategies to start.


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