Most insurance policies have a specific exclusion for Abuse. That coverage can by bought separately and is usually offered by the same carrier. If his charity, Second Mile, purchased Abuse coverage (quite certain they would have), I can’t see how Chubb can claim they do not owe a defense.
If Sandusky was the founder, chances are good he was involved in filling out the application for coverage. I would look really hard at the app to see if he made material misrepresentations about prior abuse. If he lied on the app and said that neither he nor anyone else in the foundation had been involved in molestation incidents and it’s proven he in fact molested kids prior to obtaining coverage, it could be a case for rescission or reformation.
I think what Chubb is saying is that the alleged abuse did not occur during or at a Second Mile activity – but rather on Sandusky’s own time. Of course the defense is going to say that Sandusky met these individuals and fostered the relationships during the Second Mile activities. My opinion is that Chubb will end up having to defend Second Mile as the organization and perhaps even Sandusky himself until such time he’s found guilty of the alleged crimes.
Most insurance policies have a specific exclusion for Abuse. That coverage can by bought separately and is usually offered by the same carrier. If his charity, Second Mile, purchased Abuse coverage (quite certain they would have), I can’t see how Chubb can claim they do not owe a defense.
If Sandusky was the founder, chances are good he was involved in filling out the application for coverage. I would look really hard at the app to see if he made material misrepresentations about prior abuse. If he lied on the app and said that neither he nor anyone else in the foundation had been involved in molestation incidents and it’s proven he in fact molested kids prior to obtaining coverage, it could be a case for rescission or reformation.
I think what Chubb is saying is that the alleged abuse did not occur during or at a Second Mile activity – but rather on Sandusky’s own time. Of course the defense is going to say that Sandusky met these individuals and fostered the relationships during the Second Mile activities. My opinion is that Chubb will end up having to defend Second Mile as the organization and perhaps even Sandusky himself until such time he’s found guilty of the alleged crimes.