Insurers At Risk Due To Expected Surge In Child Abuse Claims

A new report by A.M. Best speculates that insurance companies are at great financial risk, as state laws expand the statute of limitations for child sexual abuse claims.

Advocacy group Child USA recently noted that 17 states and the District of Columbia all have laws going into effect this year that either extend or abolish the time period in which child sexual abuse victims can sue or seek criminal charges against their abusers.

Other states, such as New York, have created short-term windows during which victims can file lawsuits against their abusers — regardless of when the abuse purportedly occurred.

Some insurers have already taken the initiative, and are bracing for the incoming surge in claims.