State laws expanding the statute of limitations for child sexual-abuse claims pose a growing financial risk to insurance companies, said ratings firm A.M. Best. Insurers that have written liability insurance policies for schools, religious institutions or municipal entities will likely need to increase the reserves they set aside to pay for claims, A.M. Best said in its new report, which will be released Monday. Those types of entities are at risk of increased claims alleging they were negligent in hiring or supervising alleged abusers. The report compares child sexual-abuse claims to asbestos liability because the claims can affect decades-old insurance policies and the settlement amounts can be difficult to predict.
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From the Texas Trial Lawyers Association news release.