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The Guardian - AU
The Guardian - AU
National
Christopher Knaus

Australian Anglican schools left exposed as insurers refuse to indemnify church against child abuse claims

A candle burns in a priest's hands
Insurers have declined coverage in Queensland since 2021, when time limits preventing survivors from seeking justice in the courts were removed. Photograph: Lisa Maree Williams/Getty Images

Private insurers are refusing to cover Anglican schools in southern Queensland for child abuse claims, leaving individual schools and dioceses financially exposed for the past two years.

The increasing rate of refusal comes after reforms made it easier for survivors to bring child abuse claims.

Guardian Australia revealed earlier this year that multiple state governments had been forced to step in and indemnify church-run out-of-home care and homelessness services for child abuse claims, fearing they would close shop without taxpayer-funded protection.

Documents seen by the Guardian also reveal that private insurers have abandoned a significant number of schools owned and operated by the Anglican church in southern Queensland, refusing to cover them for new claims of child sexual abuse.

The schools are not indemnified by the government and are now individually exposed to the full financial consequences of new abuse claims. Historical claims are still covered under previous insurance policies.

The Anglican Schools Commission in southern Queensland confirmed that private insurers had refused to cover any of its schools in October 2021.

“That is correct and that’s been the case since October 2021, when the insurance companies declined to give cover,” a spokesperson said.

“It does present an issue. We are putting together a self-insurance program, but it’s in its early stages and, at the next renewal date, which will be October this year, we will again be seeking to get insurance cover.”

Guardian Australia approached Anglican Schools Australia, a national body, to ask whether the issue affects schools in other parts of the country. It is understood that insurance is generally available to other Anglican schools.

Insurers began to refuse coverage for child abuse after landmark reforms in 2021 removed the time limit that previously barred many survivors from seeking justice in the courts. The reforms led to a sharp increase in child abuse claims.

State governments feared the lack of insurance for churches and church bodies meant they would withdraw critical out-of-home care and youth homelessness services.

Many state governments are heavily reliant on such services. New South Wales, Queensland, Tasmania and Western Australia have all indemnified the providers of those services, in many cases churches, for child abuse claims.

The indemnity deals are temporary. State governments are working to find a more permanent solution.

States and territories have formed an inter-jurisdictional working group in an attempt to come up with a more feasible long-term solution.

“Community services ministers across Australia have established an inter-jurisdictional working group to identify a long-term solution for physical and sexual abuse (PSA) insurance for out-of-home care and youth homelessness providers,” a WA department of communities spokesperson said in May.

“In the interim, each jurisdiction is responsible for managing [physical and sexual abuse] insurance.”

The Catholic church has its own insurance provider, Catholic church Insurance (CCI), which has experienced its own significant financial problems recently. CCI was forced to wind down operations and cease writing new insurance business and renewing policies.

The Australian Catholic Bishops Conference said in May that it remained committed to meeting its legal obligations to survivors and continuing to engage with survivors, despite the difficulties faced with CCI.

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