Negligent supervision allegations
Examples include failing to maintain visual supervision, departing from staff-to-child procedures, inadequately monitoring a playground, mishandling a child-release process or failing to act on warning signs. Whether a claim falls under general or professional liability depends on the allegations and policy wording.
Occurrence or claims-made
Some professional coverage is written on an occurrence basis; other forms are claims-made. Claims-made coverage makes the retroactive date, definition of claim, reporting provision, continuity and extended reporting options especially important.
Defense and consent
Review whether defense costs are inside or outside limits, whether a retention applies, who selects counsel and whether the insurer needs the insured’s consent to settle. The most visible number on the declarations page may not reveal the usable protection.
Who is insured
Confirm treatment of the entity, owners, directors, employees, temporary staff, volunteers, students and independent contractors. Coverage for the center does not automatically mean every individual or affiliated entity is protected in every circumstance.
Coordinate with abuse coverage
Some allegations initially framed as negligent hiring or supervision arise from alleged intentional misconduct by another person. Professional liability, general liability and abuse-and-molestation provisions should be analyzed as a system.