Our Insurance Comparison Tool allows you to pick the Abuse liability policy that's right for you by comparing every plan offered by Canada's leading insurance providers. The Frequently Asked Questions at the bottom of the page can help you learn more about this coverage area.
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Frequently Asked Questions(click to expand)
What Is Abuse Liability?
Simply put, Abuse Liability coverage is protection for companies and organizations regarding claims of abuse of people either under their care or responsibility. If a person in a position of authority misjudges certain situations or abuses their position, any business or group that they are affiliated with becomes automatically accountable -- whether they are directly responsible or not.
Abuse claims, whether true or false, can cause bad publicity for a company or organization. Not only can there be substantial legal costs and damages paid to victims, but a company’s public image may never recover from the fallout.
What Types of Abuse Are Covered?
- discrimination and harassment (including gender, race, age, religion, sexuality, disability, etc)
- bullying or mental abuse
- physical violence or corporal punishment
- sexual abuse and molestation
- negligence (either related to working practices or failure to report abuse)
- failure to efficiently screen individuals placed in positions of authority
Not all acts deemed as ‘abuse’ are intentional, however they can still be serious enough to justify a claim.
As ‘abuse’ is generally an exclusion for insurance policies that focus on things like Professional Liability, Management Liability or products that focus on Errors and Omissions, it is important to make sure that if an Abuse Liability product is required it covers any potentially sensitive situations that may occur when leaving people in positions of responsibility or in charge of others.
Who Needs Abuse Liability?
- sports clubs and organizations
- youth clubs
- religious organizations
- non-profit organizations
- social care
- professional services (eg recruitment and HR)
- health and wellness organizations
- assisted living facilities
- educational establishments
What is Vicarious Liability?
Prevention is the most practical step an employer can take to avoid such a claim being made against one of its employees. This would cover things such as anti-discrimination training, ensuring policies regarding equal opportunities are kept up-to-date and that all staff members are aware of what constitutes as harassment. Preventative measures such as these can help establish whether an employee’s actions were due to the course of their employment or their own personal actions.
In the event of a court case Vicarious Liability can be used to determine whether an employee was acting on their own behalf or if they were following company procedure. As well as bullying, discrimination and harassment, Vicarious Liability can also consider areas such as libel and breach of copyright.
How Do I Purchase Abuse Liability?
Abuse Liability may be bought either on its own as an addition to a Commercial General Liability policy, a Professional Liability policy or industry specific products for areas such as sports or non-profit organizations.