Over the weekend the Archdiocese of Los Angeles agreed to pay $660 million to settle lawsuits from hundreds of sex-abuse victims. About $250 million will come out of the diocese bank account; $60 million will come from other religious orders and another $123 million from litigation with orders that chose to sit out the deal. Insurance companies will pay the remaining $227 million. Hold on—can churches buy insurance for sex abuse?
Yes. Like any business, churches, synagogues, and other religious organizations purchase insurance to protect themselves from lawsuits, like discrimination claims or negligence charges against officers. Since the spike in sex-abuse lawsuits in the mid-1980s, churches have also had the option to take out extra liability policies for damages related to sexual misconduct. These policies don't come cheap, and they protect just the institutions, for the most part. Insurers will mount a legal defense for accused individuals, but the support extends only so far: Perpetrators are on their own if they're found guilty or choose to settle out of court.
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