Insurer Not Obligated to Cover Sandusky

March 11, 2013

The insurance carrier for the children’s charity founded by former Penn State assistant football coach Jerry Sandusky doesn’t have to cover his criminal or civil legal costs related to acts of child sexual abuse, a judge ruled on March 1.

U.S. District Judge Yvette Kane said Sandusky was not acting as an employee or executive of The Second Mile when he abused and molested boys.

“The fact that Sandusky met his victims through The Second Mile – or even sexually abused victims `during the course of activities of Second Mile’ – does not change the fact that his sexual abuse of children was personal in nature, and performed in his individual capacity,” the judge’s ruling said.

The judge ruled in favor of Federal Insurance Co., which had brought the case against Sandusky. The decision related to paying for his lawyers follows the judge’s earlier ruling that the insurer wasn’t on the hook for judgments against him.

Sandusky was convicted last summer of abusing 10 boys. But he maintains his innocence and is appealing.

Federal Insurance previously advanced $125,000 to Sandusky’s criminal defense attorney, the judge wrote.

Topics Carriers

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Insurance Journal Magazine March 11, 2013
March 11, 2013
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