Insurer sues archdiocese for failing to disclose sex abuse allegations
The Archdiocese allegedly made some material misrepresentations on its liability insurance application.
On July 13, Lloyd’s of London filed a lawsuit accusing the Roman Catholic Archdiocese of Indianapolis of failing to disclose allegations of sexual abuse when applying for liability insurance coverage.
The suit, Certain Underwriters at Lloyd’s, London, Syndicates 2623 and 623 v. The Roman Catholic Church of the Archdiocese of Indianapolis, was filed in an Indianapolis court and stemmed from allegations that the archdiocese failed to disclose sex abuse allegations against one of its priests when it renewed its coverage last year.
The case concerns one priest within the archdiocese, who faces allegations that he sexually abused a child. According to the relevant documentation, in February 2019, the victim’s father told a church official that he intended to sue the archdiocese, and another parishioner reported additional allegations of sexual misconduct resulting in the priest’s removal from his duties. Later that year, the priest was arrested, and the victim’s father filed suit against a parish school and the archdiocese in February of this year.
The policy renewal application included a question asking the Archdiocese whether or not it was aware of any “facts, circumstances, or allegations that may result in claims being made against you.” The Archdiocese replied no to that question, and to a question asking whether any employee had been involved in an allegation or claim of sexual abuse and whether any employee had been suspended or transferred due to sex abuse suspicions or claims.
Lloyd’s says that because the answers were untruthful in light of the allegations, the policy should be voided. Lloyd’s also stated that if it had been made aware of the allegations it would not have issued the policy, or it would have issued the policy under different terms.
Editors Note: Entering into a contract with a person or company on false grounds by making statements that are not in accordance with the facts is known as misrepresentation. In an insurance contract, misrepresentation on behalf of the insured gives the insurer the right to terminate the policy.
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