The Truth About SAM Endorsements vs Standalone Policies

SAM Policy language teardown

SAM endorsement on GL vs standalone

In insurance, SAM usually means Sexual Abuse or Molestation coverage. You will also see it called Sexual Misconduct Liability or Abuse and Molestation Liability.

SAM is often required by schools, cities, youth programs, camps, and any organization working with minors or vulnerable groups. But the requirement alone rarely explains how the coverage must be built. That gap is where the problems start.

The two ways SAM usually shows up

1) SAM endorsement on a General Liability policy

This is when a standard GL policy adds an endorsement that is meant to address sexual misconduct claims. Depending on the carrier and form, it might:

• Fully restore coverage that the policy otherwise excludes (a true buyback)

• Offer limited protection (example: only negligent supervision)

• Add language that sounds helpful but does not actually override the exclusion

Endorsements can come with limits, restrictions, and narrow definitions. Some only protect the organization if the abuser is not an insured person. Others define “abuse” so tightly that allegations involving grooming, verbal misconduct, or non physical misconduct get argued out of coverage.

Defense costs are a common trap. If legal fees erode the SAM limit and the limit is a $100,000 sublimit, there may be little or nothing left for settlement.

2) Standalone SAM policy

A standalone SAM policy is built specifically for sexual misconduct claims. It often includes broader definitions, higher limits, and clearer handling of defense. It may also keep SAM separate from the GL limits, so a large abuse claim does not wipe out the GL aggregate.

Standalone policies are usually more expensive. Many carriers also want to see risk controls, like written procedures, background checks, and training. Some standalone SAM policies are claims made, which adds reporting requirements.

Standalone SAM is often the better choice when:

• You work directly with minors

• The contract asks for separate limits or separate aggregates

• You want cleaner definitions, fewer gray areas, and stronger defense language

• You want coverage designed to hold up when the claim is real and the facts are ugly

Common misunderstandings that lead to trouble

1) “It says SAM on the certificate, so we’re fine.”

Not necessarily. A certificate is not the contract. The actual policy forms control coverage.

2) “SAM is included,” but it is really a small sublimit

Some policies list SAM but only provide $100,000 (or another low sublimit). That often fails venue requirements and can be functionally useless in a real claim.

3) Defense costs reduce the limit

A $1M limit is not always a $1M limit. If defense is inside limits, legal fees can burn through the coverage fast.

4) Coverage only applies to certain theories of liability

If the endorsement only covers negligent supervision but the claim alleges broader misconduct related allegations, coverage can get restricted or denied.

5) The exclusion still applies

If the SAM endorsement does not clearly override the abuse or molestation exclusion, you may have no coverage at all.

A 10 minute SAM coverage checklist

When reviewing a SAM endorsement on a GL policy, confirm the following.

A) Exclusions and buyback

• Is there an Abuse or Molestation exclusion in the base GL?

• If yes, is there a specific endorsement that clearly restores coverage (buyback)?

• Does the buyback apply to the full exclusion, or only part of it?

B) Limits and structure

• What is the SAM limit?

• Is it equal to the GL per occurrence and aggregate limits?

• Is it a sublimit (example: $100,000)?

• Is there a separate SAM aggregate?

C) Defense handling

• Are defense costs inside limits or outside limits?

• Any restrictions on choice of counsel?

• Any special conditions that must be met for defense to apply?

D) Who is covered

• Is the Named Insured covered (the organization)?

• Are employees, volunteers, coaches, and staff treated as insureds for this coverage?

• Is coverage excluded if the alleged abuser is an insured person?

E) Allegations and definitions

• How does the policy define “abuse,” “molestation,” or “sexual misconduct”?

• Does it include grooming and non physical misconduct allegations?

• Is coverage limited to negligent supervision only, or does it include failure to report, negligent hiring, training, and retention?

F) Remaining exclusions and carve outs

Look for exclusions or limitations like:

• Prior acts or prior known incidents

• Criminal acts exclusions and how they apply to the organization vs the individual

• Known wrongful acts or “prior knowledge” language

• Punitive damages limitations (varies by state and form)

• Claims arising out of intentional acts (and whether the org still gets defense)

G) Contract requirements beyond SAM

Even perfect SAM language will not satisfy a venue contract if other requirements are missing. Confirm:

• Additional Insured (correct form and wording)

• Primary and Non Contributory

• Waiver of Subrogation

• Notice of Cancellation wording and days required

Final thoughts

If you are deciding between a SAM endorsement and a standalone SAM policy, here’s a practical rule of thumb:

• A SAM endorsement can work when exposure is low, requirements are simple, and the endorsement is a true buyback with clear limits and workable defense.

• A standalone SAM policy is usually the safer choice when you work closely with minors, need higher limits or separate aggregates, or want coverage that is less dependent on fragile endorsement wording.

Bottom line: Do not assume you are covered because a certificate says “SAM.” Read the forms. Verify the limits. Confirm how defense works. Make sure the exclusion is actually overridden.

Need help decoding a venue’s SAM requirement? Talk to our licensed insurance brokers who understand the fine print. Better yet, send in the insurance clause, and we’ll help translate it into a checklist you can actually use.