Why Hawaiʻi Schools, Churches and Parks Now Require Sexual Abuse and Molestation Coverage

If your business or nonprofit works with children, there's a good chance you've been asked for proof of sexual abuse and molestation coverage recently. It's not just my clients. Most agents I talk to across Hawaiʻi are quoting and placing more of these policies than ever before.

The requests come from schools, churches, park facilities and other organizations that let outside groups work with kids on their property. And more often than not, the general liability policy a business already has doesn't meet the requirement.

Who is asking for it

The requirement usually shows up in a contract, a facility use agreement or a vendor application. The most common sources I see:

• Schools, public and private, for after-school programs, tutors, coaches, camps and vendors working on campus.
• Churches, for youth ministries and for outside groups that rent or borrow church space.
• Parks and field owners, including associations that let youth teams practice or play on their fields.
• Other organizations with youth exposure, such as camps, enrichment programs, dance and martial arts studios, swim schools and youth leagues.

If your business or nonprofit spends time around children, even occasionally, expect this question to come up.

Why your general liability policy may not be enough

Most general liability policies handle sexual abuse and molestation (often shortened to SAM) in one of two ways:

• They exclude it entirely. Many GL policies have an abuse or molestation exclusion, so there's no coverage at all for these claims.
• They cover it with a sublimit. Some policies include SAM coverage, but at a lower limit than the rest of the policy. A sublimit of $100,000 per occurrence and $300,000 aggregate is common.

The problem is that most requirements today call for at least $1,000,000 per occurrence. A $100,000 sublimit doesn't meet that, even if your general liability limit is $1,000,000 or more. A certificate that shows a $1 million GL limit can give the impression you're covered when you're not.

The fix is usually a dedicated SAM policy or an endorsement that brings SAM coverage up to the required limit.

Why requirements are rising

Organizations that host or partner with youth programs are protecting themselves, and the reasons are real:

• Claims can come decades later. In 2024, Hawaiʻi extended the deadline for civil childhood sexual abuse claims. For incidents on or after July 1, 2024, survivors generally have until 32 years after their 18th birthday to file, or five years after discovering that a psychological illness was caused by the abuse, whichever is later.
• The host organization can be named too. When a claim involves an outside group using a school, church or park, the property owner is often pulled into the lawsuit. Requiring the outside group to carry its own SAM coverage, often naming the owner as an additional insured, is how owners protect themselves.
• Insurers have pulled back. As these claims have grown, more carriers have added exclusions or sublimits to general liability policies, which leaves gaps that a separate requirement fills.

The long claim window also means the coverage you buy today matters for years to come.

What to check and what to do

Before you sign a facility agreement or contract, look at these points:

1. Does your current policy exclude SAM, or sublimit it? Check the endorsements on your general liability policy for an abuse or molestation exclusion or a reduced limit.
2. What limit does the contract require? Most now ask for $1,000,000 per occurrence, and some ask for a specific aggregate as well.
3. Does the contract require additional insured status? Many owners want to be named on your SAM coverage, not just your general liability.
4. Who is covered? Make sure employees and volunteers are both included, especially for nonprofits and youth leagues.
5. Is the policy written on an occurrence or claims-made basis? With claims allowed decades later, this detail matters. Ask your agent to explain the difference for your situation.

Insurers will also want to know how you protect kids. Background checks, written policies on supervision, and training for staff and volunteers can make coverage easier to get and sometimes less expensive.

Have a contract asking for SAM coverage? Take our Coverage Check or book a call, and I'll review the requirement and find coverage that meets it.