Homewood Insurance Warns of Abuse Claims Exclusion in General Liability Policies

Naples, Florida - Sept 27, 2026 - Homewood Insurance Group, a specialty malpractice and liability broker serving the healthcare, senior living, and social services sectors, has issued a warning to organizations that care for children and vulnerable adults. The warning comes after the company noted that standard general liability policies often exclude abuse and molestation claims, leaving organizations exposed to significant financial risks.

According to Homewood, the exclusion typically appears in an endorsement near the back of the policy, identified only by a form number. This exclusion is often overlooked by directors, administrators, and board members who assume their $1 million to $2 million general liability certificate fully covers their organization's most serious risk.

The cost of defending an abuse allegation can be substantial.

Schiller further highlighted the unusual way time runs in these cases. For claims involving minors, statutes of limitations in many states do not begin until the child turns eighteen, and a number of states have recently extended those windows or reopened ones that had closed. An allegation concerning a summer program in 2019 can therefore arrive in 2035, and whether it is covered depends entirely on the coverage purchased at the time.

Homewood's guidance also points out that dedicated sexual abuse and molestation (SAM) coverage is available and can restore what the general liability exclusion removes. This coverage responds to allegations against employees, volunteers, and contractors, and in many forms, it covers abuse by other clients or residents. The cost of a complete insurance program, including general liability, professional liability, abuse coverage, and related lines, generally falls in the range of $28,000 to $55,000 per year, with abuse coverage being a meaningful but not dominant share of that total.

To qualify for abuse coverage, Homewood identifies four prerequisites underwriters routinely require: criminal background checks on every employee and volunteer with access to vulnerable people; a written, signed zero-tolerance policy; documented staff training such as the Darkness to Light "Stewards of Children" program; and supervision rules that limit one-adult, one-child situations.

In a related development, Homewood Insurance Group has relocated its offices to Homewood, Alabama, at 219 Oxmoor Circle, Suite 129. The new office is nearly three times larger and includes a client design center. The firm serves homeowners across the Birmingham metro area.

The company also highlighted the rising liability risks and premium drivers for midwives in the U.S. According to Homewood, midwives are facing rising liability insurance costs, with carriers signaling closer scrutiny of practice settings, emergency protocols, and risk management strategies. The company released new insights to help midwives understand what underwriters look for and how to manage costs.

In a separate release, Homewood Insurance Group warned medical staffing agencies to strengthen their credentialing and screening processes. The company noted that failure to vet candidates thoroughly can result in denied insurance coverage or sharply increased premiums. Recent data shows that up to 53% of job applications contain inaccurate information, while nearly 55% of Americans admit to lying on their resumes.

The full guidance is available at homewood.insure/news.