Sexual Abuse and Molestation Insurance: A Guide for Youth-Serving Businesses

Sexual abuse and molestation insurance (SAM insurance) protects businesses that work with children and vulnerable populations from claims of misconduct. In this guide, Alliance Risk covers what SAM coverage is, who needs it, what it costs, and how to get the right policy for dance studios, daycares, gymnastics facilities, summer camps, and other youth-focused organizations.

If your business involves working with children, you face a unique and serious liability exposure that standard general liability insurance does not cover. Sexual abuse and molestation insurance, commonly called SAM insurance or abuse and molestation coverage, provides essential protection for organizations that serve minors and other vulnerable populations.

At Alliance Risk, we work with youth-serving organizations every day to secure appropriate SAM coverage. This comprehensive guide explains everything you need to know about SAM insurance, including what it covers, which businesses need it, how much it costs, and how to obtain the right coverage for your organization.

What Is Sexual Abuse and Molestation Insurance?

Sexual abuse and molestation insurance is a specialized liability coverage that protects businesses and organizations from claims arising from alleged or actual sexual misconduct, abuse, or molestation. This coverage applies whether the alleged perpetrator is an employee, volunteer, contractor, or another person associated with your organization.

SAM insurance is also known by several other names:

• Abuse and molestation coverage
• Sexual misconduct insurance
• Molestation liability insurance
• Sexual abuse liability coverage

Why Standard Liability Insurance Is Not Enough

Most general liability policies have an abuse and molestation exclusion. Translation: if there’s an abuse claim, your regular insurance won’t help. You’re on the hook for legal fees, settlements, and everything else.

Why? Abuse claims are expensive and unpredictable. Insurers carve them out. If you work with kids or vulnerable adults, you need a separate SAM policy to be covered.

What Does SAM Insurance Cover?

A comprehensive sexual abuse and molestation insurance policy typically covers the following:

Defense Costs

Legal defense is often the largest expense when facing an abuse allegation. SAM insurance covers attorney fees, court costs, expert witness fees, and other legal expenses required to defend your organization against claims. Some policies provide defense costs in addition to policy limits, while others include defense costs within the limits.

Settlements and Judgments

If there’s a settlement or judgment, SAM insurance pays up to your policy limits. Abuse lawsuits can get expensive fast. Make sure your limits are high enough.

Claims Involving Employees, Volunteers, and Third Parties

SAM coverage generally applies regardless of who allegedly committed the abuse, as long as there is a connection to your organization. This includes:

• Full-time and part-time employees
• Volunteers and interns
• Independent contractors
• Board members and directors
• Participants who abuse other participants

Negligent Hiring, Supervision, and Retention

Many abuse lawsuits name the organization for negligence in hiring, training, supervising, or retaining the person who committed the abuse. SAM insurance covers these vicarious liability claims, which can be brought even when the organization had no direct knowledge of the misconduct.

Physical and Emotional Abuse

Some SAM policies go further. They cover physical abuse, corporal punishment, and sometimes even emotional or psychological abuse. Check your policy to see what’s included.

Who Needs Sexual Abuse and Molestation Insurance?

If your staff or volunteers work with kids, teens, or vulnerable adults, you need SAM insurance. The risk is real any time there’s physical contact, private meetings, or a position of trust.

The following types of businesses and organizations have significant exposure to abuse claims and should prioritize obtaining adequate SAM coverage:

Childcare Centers and Daycare Facilities

Daycare providers face substantial abuse liability due to the young age of children in their care, the frequency of diaper changes and bathroom assistance, and the trust parents place in these facilities. Daycare liability insurance should always include SAM coverage. Home daycare providers need this coverage just as much as large childcare centers.

Dance Studios and Dance Schools

Dance studios have their own risks. Instructors work closely with students—sometimes one-on-one. Costume changes, physical corrections, and private lessons all open the door to abuse allegations. If you teach kids or teens, SAM coverage is essential.

Gymnastics Facilities and Cheerleading Programs

Gymnastics is high-touch by nature. Spotting, hands-on help, and close coach-athlete relationships are part of the sport. After several high-profile abuse scandals, lawsuits and insurance costs have gone up.

Martial Arts Schools and Self-Defense Programs

Martial arts classes involve a lot of physical contact—grappling, holds, and demonstrations. The culture is discipline-focused, and instructors have authority. That can make it harder for abuse to get reported. SAM coverage is a must.

Youth Sports Organizations and Coaching Programs

Youth sports come with real abuse risks. Travel, locker rooms, team bonding, and the mentor role of coaches all add exposure. If your sports insurance doesn’t include SAM coverage, you’re not protected.

Summer Camps and Overnight Programs

Camps are a unique risk. Kids are away from parents, sometimes overnight. Swimming, changing, and close counselor relationships all increase exposure. Day camps and overnight camps both need strong SAM coverage.

Churches and Religious Organizations

Churches have been in the spotlight for abuse claims for years. Youth programs, Sunday school, and counseling all create risk. Heavy reliance on volunteers makes screening and supervision even harder.

Nonprofits and Youth-Serving Organizations

Nonprofits working with kids—mentoring, scouting, after-school programs—need SAM coverage. At-risk youth are more vulnerable and less likely to speak up if something happens.

Schools and Educational Programs

Private schools, tutoring centers, music schools—all need SAM coverage. Any place where adults teach kids, especially one-on-one, carries abuse risk.

Pediatric and Therapeutic Services

Pediatric therapists, OTs, speech therapists, child psychologists—if you work with kids, you need SAM coverage. Therapy is personal, and patients are vulnerable. That’s a big exposure.

Standalone SAM Insurance vs. Policy Endorsements

You can get SAM coverage two ways: as a standalone policy or as an add-on to your general liability. Knowing the difference helps you pick what’s right for your group.

Standalone Abuse and Molestation Insurance

A standalone or monoline abuse and molestation insurance policy is a separate policy dedicated entirely to SAM coverage. Standalone policies typically offer:

• Higher coverage limits, often $1 million or more per occurrence
• Broader coverage terms with fewer exclusions
• Defense costs in addition to policy limits
• Coverage for a wider range of abuse types
• Access to specialized claims handling and legal resources

Standalone policies are best for bigger operations, residential programs, or anyone who’s had a claim before.

SAM Coverage as a Policy Endorsement

Many general liability insurers offer SAM coverage as an endorsement or rider that can be added to your existing policy. Endorsement coverage typically provides:

• Lower limits, often $100,000 to $500,000 per occurrence
• Sublimits within your overall general liability policy
• Defense costs that erode policy limits
• More restrictive coverage terms

Endorsement coverage may be adequate for smaller organizations with limited exposure, but businesses should carefully review the terms and limits to ensure they provide meaningful protection. Alliance Risk can help you evaluate whether an endorsement or standalone policy is the right fit for your organization.

How Much SAM Insurance Coverage Do You Need?

Determining appropriate coverage limits requires evaluating your organization’s specific risk profile. Factors that influence how much coverage you need include:

• Number of children or vulnerable individuals served
• Age range of participants (younger children generally mean higher risk)
• Nature and frequency of physical contact involved in your services
• Whether activities include private or one-on-one interactions
• Overnight or residential program components
• Number and turnover of employees and volunteers
• Contractual requirements from landlords, school districts, or partner organizations

Most organizations should carry a minimum of $1 million per occurrence and $2 million aggregate in SAM coverage. Larger organizations, residential programs, and those with higher risk profiles may need $2 million or more per occurrence. Defense costs can quickly consume lower limits, leaving insufficient funds to pay settlements or judgments.

How Much Does SAM Insurance Cost?

SAM insurance costs depend on your type of business, size, and risk. Here’s what we see for typical organizations:

Costs go up if you’ve had claims, don’t have written abuse prevention policies, have high staff turnover, run overnight programs, or work with especially vulnerable groups. Strong safety protocols, background checks, and training can help lower your rates.

Risk Management Requirements for SAM Coverage

Insurers want to see real abuse prevention steps. These aren’t just for show—they help you get coverage, lower your premiums, and actually reduce risk.

Background Checks

Run background checks on everyone who works with kids or vulnerable adults—staff, volunteers, contractors. Use national databases, sex offender registries, and local court records. Most insurers want these checks updated every one to three years.

Written Abuse Prevention Policies

Your organization should maintain written policies that address:

• Two-adult rule requiring two screened adults present during activities
• Open door policies prohibiting closed, private meetings with minors
• Appropriate physical contact guidelines
• Social media and electronic communication boundaries
• Transportation policies for one-on-one travel
• Restroom and changing area supervision procedures

Training Programs

Train your staff and volunteers on spotting abuse, setting boundaries, reporting, and your own policies. Document the training and refresh it every year.

Reporting Procedures

Set up clear reporting procedures for suspected abuse. Make sure everyone knows what to do. Document reports and follow the law on mandatory reporting.

How to Obtain SAM Insurance

Getting SAM insurance means working with a broker who knows this coverage. Here’s how we recommend you do it:

Step 1: Assess Your Exposure

Write down what your organization does, who you serve, how many staff and volunteers you have, and what you do to prevent abuse. You’ll need this for your insurance application.

Step 2: Check Your Current Coverage

Review your existing general liability policy to determine whether it contains an abuse and molestation exclusion (most do) and whether any SAM coverage is currently included. If coverage exists, evaluate whether the limits and terms are adequate.

Step 3: Work with a Specialized Broker

Not every agent can get you SAM insurance. Find a broker who works with youth organizations and has access to the right carriers. We work with several companies that specialize in this coverage, so we can find options that fit.

Step 4: Complete the Application

The application will ask about your operations, safety steps, background checks, training, and any past claims. Have your policies and training docs ready to share.

Step 5: Review Policy Terms Carefully

Before you sign, read the policy carefully. Look for:

• Per occurrence and aggregate limits
• Whether defense costs are inside or outside limits
• Retroactive date for claims-made policies
• Definition of covered abuse types
• Who qualifies as an insured
• Exclusions and conditions

Industry-Specific SAM Insurance Guidance

SAM Insurance for Dance Studios

Dance studios face unique liability exposures that make SAM coverage particularly important. The physical nature of dance instruction, including hands-on corrections, partnering work, and costume fittings, creates circumstances where inappropriate contact can occur or be alleged.

Key risk factors for dance studios include private lessons without observers, dressing rooms and costume changes, competitions and performances involving travel, and the often close relationships between instructors and students who train together for years.

Dance studio insurance packages should combine general liability, property coverage, and SAM coverage. Look for carriers that understand the dance industry and can offer appropriate limits without excessive premiums.

SAM Insurance for Daycare Centers

Childcare providers handle the most vulnerable population and face the highest scrutiny when abuse allegations arise. The very young age of children in daycare means that injuries or behaviors may be attributed to abuse even when other explanations exist, making false allegations more common than in other settings.

Daycare liability insurance with robust SAM coverage should be considered essential, not optional. Home daycare providers often have lower limits and should evaluate whether their coverage is truly adequate given the severity of potential claims.

Insurers will want to see documented diaper changing and bathroom assistance protocols, staff-to-child ratios that meet or exceed licensing requirements, comprehensive background checks, and training on abuse recognition and prevention.

SAM Insurance for Gymnastics Facilities

The gymnastics industry has faced significant abuse scandals that have changed how insurers view this risk. Gymnastics insurance costs have increased, and underwriting has become more stringent. However, facilities with strong safety cultures can still obtain competitive coverage.

Spotting requirements mean physical contact is inherent to the sport, making clear policies about appropriate touch essential. The competitive nature of gymnastics and the authority coaches hold over athletes’ futures can create dynamics where abuse goes unreported.

Gymnastics facilities should work with insurers or brokers experienced in this industry who understand the unique exposures and can advocate for appropriate coverage at reasonable rates.