Sexual assault is a grave violation of a person’s dignity, safety, and autonomy, leaving lasting emotional, psychological, and physical scars. Survivors of sexual assault in Colorado, like in many other states, have the legal right to seek justice through both criminal and civil courts.
While criminal cases focus on punishing the perpetrator, civil cases allow survivors to seek financial compensation for the harm they endured. These civil lawsuits can include compensation for medical expenses, emotional distress, loss of income, and other damages. In recent years, insurance has played an increasingly prominent role in how sexual assault civil settlements are managed, negotiated, and paid out in Colorado.
The main issue is who will pay for any settlement or judgment awarded to the survivor. This is where insurance policies can become highly relevant. In many cases, the individuals or entities being sued may hold insurance policies that could be used to cover part or all of the settlement or judgment.
Homeowners Insurance
Surprisingly, in some instances, homeowners' insurance policies may be tapped for sexual assault settlements. Many homeowners' policies include liability coverage that protects policyholders against certain types of lawsuits, including those arising from injuries or harms that occur on their property or involve family members. However, insurance companies generally argue that intentional acts such as sexual assault should be excluded from coverage. That said, there have been cases where survivors have successfully argued that negligence — rather than the assault itself — was the basis for liability. For instance, if a parent failed to supervise a child who then committed an assault, the homeowners' insurance might cover the claim under the policyholder's negligence, not the intentional act.
Business or Employer Insurance
When sexual assault occurs in the workplace or an institution, such as a school, church, or other organization, the employer’s liability insurance can become relevant. Many businesses carry general liability insurance or specific policies, such as Employment Practices Liability Insurance (EPLI), that may cover claims arising from misconduct by employees, including harassment and sexual misconduct. In cases where the assault was perpetrated by an employee, and the employer was negligent in hiring, supervision, or retaining that employee, the business's insurance might be liable for the resulting civil damages.
For instance, in Colorado, where ski resorts are major employers, a company might be sued if one of its employees sexually assaults a guest or another employee. If the plaintiff can prove that the employer was negligent in hiring or failed to prevent the assault, the employer’s insurance may be responsible for covering the settlement.
Directors and Officers (D&O) Insurance
In cases involving large institutions, including schools, nonprofits, and corporations, Directors and Officers (D&O) insurance can also come into play. D&O insurance provides liability coverage for decisions made by executives and board members. If it can be shown that those in charge of an organization acted negligently — for instance, by ignoring complaints about a potential predator within the organization — survivors might be able to access D&O insurance to recover civil damages.
Negligence and Third-Party Claims
One of the ways insurance is brought into sexual assault civil settlements is through negligence claims. While the assault itself may not be covered by insurance, the negligence of a third party can be. For example, if a school or daycare fails to properly vet employees, and a staff member commits sexual assault, the institution might be held liable under a negligence theory. Here, insurance companies may step in to cover part of the liability. These cases are complex, and insurers often push back, requiring survivors to navigate a maze of legal and procedural hurdles.
Challenges with Insurance in Sexual Assault Cases
Insurance companies often resist paying claims for sexual assault lawsuits, particularly when they argue that the assault was an intentional act excluded under the policy’s terms. This can lead to lengthy legal battles over whether coverage applies, who is liable, and how much the insurer must pay. Often, survivors and their legal teams have to fight against insurance companies' efforts to deny or limit claims, arguing that third-party negligence or other covered issues should trigger a payout.
In Colorado, where some of the largest sexual abuse lawsuits have involved institutions such as the Catholic Church, insurance disputes have been a key part of the process. Insurers for the Church, for instance, have attempted to limit their liability by arguing that certain abuse cases fell outside the scope of their coverage. Nevertheless, in some cases, settlements have been reached with the help of insurance payouts, providing survivors with much-needed compensation.
If you or a loved one has been a victim of sexual assault and are seeking justice through a civil settlement, it's crucial to have experienced legal representation on your side. At Colorado Sex Abuse Law, we specialize in personal injury cases and are dedicated to helping victims secure the compensation they deserve. Our team of compassionate and skilled attorneys will guide you through the claims process, advocate for your rights, and ensure your privacy is protected.
Contact us today to schedule a free consultation and learn more about how we can assist you. Your path to justice and healing starts here.