Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
California Governor, Gavin Newsome, signed a new state law on October 13th, 2019 to better protect California’s survivors of child abuse. In response, youth organizations and insurance companies expect a surge in legal activity in 2020.
This new law will give survivors of childhood sexual abuse until age 40 to file a civil suit against their attackers. This is a 14-year increase from the previous age limit of 26. Adult survivors previously had three years from discovering the abuse to sue, but the new law now provides a five year window. The new law also suspends the statute of limitations to three years beginning January 1, 2020. No age limit will be enforced during the three-year span.
The State of New York passed a similar law on January 25, 2019 named the “Child Victims Act.” Among other changes, the new law allows survivors of any age to come forward beginning August 1, 2019. More than 400 lawsuits were filed the first day the act took effect.
Insurance companies offering abuse liability insurance in California are prepared for a surge in legal activity in 2020. New lawsuits may cause an increase to insurance premiums and negatively impact the carriers’ capacity to offer higher limits of liability.
Youth organizations that normally rely on insurance companies to cover the cost of defense and settlement in these cases, may find themselves in financial jeopardy if insurance limits become exhausted.
It is imperative that school districts and other youth organizations take a critical look at youth protection policies and safeguards moving forward. This may include added training, mandatory background checks, and eliminating one-on-one interactions.
Please contact Rancho Mesa to learn about resources for creating a strong youth protection policy.
Information sourced from The Legal Examiner and ABC News.