Many football clubs in the UK have liability insurance that covers them for claims from victims of child sex abuse, which has resulted in payouts. As the scandal continues to engulf the sport, insurers have pledged to improve the compensation process.
Police reported on Thursday that 350 people have now come forward to report attacks and, as the scope of inquiries grows, the role of insurance companies has come under the spotlight.
The Association of British Insurers (ABI) said: “Recent revelations regarding abuse in football are very distressing and at the heart of it are the victims and survivors who have been abused.
“The insurance industry is fully engaged with the current independent inquiry and has submitted constructive suggestions about how the civil justice compensation process could be improved.”
Patrick Collinson, the editor of Guardian Money, notes that major clubs take out combined employers’ and public liability policies, which collectively covers a huge range of eventualities, including allegations of sexual assault.
He says: “The public liability part covers the club for claims when, say, a fan is hurt in the stadium. The employers’ element covers claims relating to members of staff. One major insurer said there were circumstances, such as the allegations of sexual assault, in which claims could possibly be made against the employer’s liability, and a payment be made, and such a payment could be subject to a non-disclosure agreement.”
On Wednesday it emerged that Chelsea sanctioned a compensation payment at boardroom level to a former youth team player who approached the club to complain about abuse at the hands of the club’s former chief scout, Eddie Heath, who worked at the club between 1968 and 1979. Heath died in the late 1980s. The compensation was offered without an acceptance of liability.
Collinson added: “Legally speaking, any employer, such as a football club, can be held liable for personal injuries inflicted by a member of their staff, where the employee’s actions have been carried out during the course of their employment.
“Ultimately, if the employer is held to be liable, then the victim can make a personal injury claim which will then be covered by the club’s employer’s liability insurance.”
The ABI statement continued: “Compensation paid by an organisation to a victim could be covered by liability insurance. As part of the settlement process, confidentiality clauses are sometimes requested by victims or the organisation insured. They are not part of the insurance contract and we are not aware of any insurers who currently request them.”
