No Coverage for Non-Profit for Employee’s Sexual Misconduct

Federal Ins. Co. v. Sandusky (M.D. Pa., March 1, 2013)

The insurer sought a declaration that it owed no coverage to former Penn State coach Jerry Sandusky for criminal and civil causes of action related to sexual abuse and molestation of minor males. The insurer provided D&O and ERP coverage to a nonprofit of which Sandusky was an employee and an executive. The court found that there was no coverage for Sandusky because the acts of abuse and molestation did not occur within Sandusky’s capacity as an “insured.”