With pedophiles dominating the headlines, the pervert problem isso out of control that the city is requiring abuse and molestation insurance for contractors, reports the New York Daily News. Experts say it's a wise policy that protects taxpayers from massive payouts to sexual assault victims, but the pricey requirement could hurt the little guy stuck paying for the sins of others.
“Not only did Jerry Sandusky hurt those kids in Pennsylvania, it’s going to have repercussions for kids all over the country,” said ex-New York City police detective Pat Russo, who heads the Atlas NYPD Cops for Kids Boxing Program. The free boxing program for low-income kids is on the ropes because it can't afford the expensive price for protection against predators. Russo sank $25,000 in retrofitting a gym but discovered that the $2,000 a year he pays for general liability insurance at his four other boxing gyms doesn't include molestation coverage. His insurance broker told him that would run him another $15,000 a year. “We could never handle that,” he said. Tom Baker, a professor at the University of Pennsylvania Law School, said insurers have started cutting abuse coverage out of general policies — forcing businesses to buy add-ons — because of the huge hits from sex scandals.