Coverage and Liability Issues in Sexual Misconduct Claims

VIRGINIACoverage Trigger & Number ofOccurrencesIntentional Acts ExclusionsPerpetrator:Non-perpetrator:Sexual Misconduct ExclusionsStatute of LimitationsContinuous and repeated acts of sexual molestation constitute“exposure to substantially the same general conditions” and thusconstitute a single occurrence which entitles the insured to only onepolicy limit, regardless of the number of acts of abuse. S.F. v. WestAmerican Ins. Co., 463 S.E.2d 450 (Va. 1995) (Employee’s continuousand repeated sexual molestation of seven minors constituted oneoccurrence per victim, for a total of seven occurrences).Alleged intentional torts arising out of minor sexual abuse are notcovered under a liability policy because such claims are not for injuryarising out of an “occurrence” or “accident”. American and ForeignIns. Co. v. Church Schools in the Diocese of Virginia, 645 F. Supp.628 (E.D. Va. 1986); See also St. Paul Fire and Marine Ins. Co. v.Jacobson, 826 F. Supp. 155 (E.D. Va. 1993), aff’d, 48 F.3d 778 (4thCir. 1995) (Coverage would be precluded under intentional actsexclusions and Virginia public policy for intentional criminal sexualmisconduct).Allegations of negligence arising out of intentional sexual abuse maystate a claim for a potentially covered “occurrence” under the policy.American and Foreign Ins. Co. v. Church Schools in the Diocese ofVirginia, 645 F. Supp. 628 (E.D. Va. 1986).A professional liability policy’s sexual misconduct provision whichprovided a reduced sublimit for alleged sexual misconduct was notagainst public policy, even where non-sexual misconduct was alsoalleged. McConaghy v. RLI Ins. Co., 882 F. Supp. 540 (E.D. Va.1995).An action for personal injuries shall be brought within two years afterthe cause of action accrues. Va. Code Ann. §8.01-243(A).For injury resulting from sexual abuse occurring during the infancy orincapacity of the person, the statute of limitations runs upon removalof the disability of infancy or incapacity or, if the fact of the injury andits causal connection to the sexual abuse has not been known, whenthe fact of the injury and the causel connection to the sexual abuse isfirst communicated to the person by a licensed physician, psychologistor clinical psychologist. Id. at §8.01-249(6). The parents of a sexuallyabused minor do not get the benefit of this tolling provision. Mahoneyv. Becker, 435 S.E.2d 139 (Va. 1993).The statute applicable to a §1983 Civil Rights claim that a countymade false allegations of abuse against stepparents was two years.Gedrich v. Fairfax County Dept. of Social Services, 282 F. Supp. 2d439 (E.D. Va. 2003).Reporting LawsVa.Code Ann. §63.1-1501 et. seq.– 66 –