A large proportion of UK football clubs have insurance that covers them for liability in case of incidents like the ones that have recently been brought to light by the bravery of abused ex-footballers.
The incidents have led to a number of insurance companies proposing improvements to the process of compensating victims, of which there are now 350.
The Association of British Insurers (ABI) has spoken about the scandal, saying: “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.”
Many big clubs have employers’ and public liability insurance policies, which would cover a large range of situations, including sexual assault.
Claims could potentially be made against the employer, with them being liable for the events. There are circumstances, such as alleged sexual assault, which can result in compensation being due, and any payments made may be subject to a non-disclosure agreement.
“Compensation paid by an organisation to a victim could be covered by liability insurance,” the ABI continued in its statement.
“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.”