WASHINGTON (DC)
Education Dive
April 13, 2020
By Lorelei Laird
Even institutions that haven’t experienced massive scandals may find they are paying more for less coverage.
Michigan State University had general liability coverage from the same insurance company for nearly two decades. Then it was revealed that one of its sports doctors had sexually abused hundreds of women and that top administrators knew of and mishandled complaints about his behavior.
After more than $500 million in settlements and fines and a coverage dispute, Michigan State’s longtime insurer declined to include coverage for sexual misconduct related to the sports doctor and another official in the university’s general liability policy, The Wall Street Journal reported. The university ultimately created its own insurance company to get coverage.
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