Texas Law Change Creates Unintended Liability Risk for Childcare Insurers

In 2019, Texas lawmakers doubled the time window for certain childhood sexual-abuse lawsuits from 15 to 30 years. Insurance agent Phillips noted that this change created an unintended consequence for insurers, who now face claims tied to policies written decades earlier. This has resulted in a significant amount of claims and old expired insurance policies paying out.

The increased liability exposure and payouts are making it difficult for childcare centers to obtain insurance, as noted by center directors. The rising costs are driven by the legal changes in Texas and the subsequent claims volume.