The Second Mile's insurer carrier (Federal Ins. Co., out of Warren, N.J.) has stated that any illegal acts by the former PSU football coach were not committed "in his capacity" as an official of Second Mile. Second Mile is the nonprofit organization Sandusky started bck in 1977 to help troubled young people. This is according to an article in www.Philly.com.
In the civil suit filed, Sandusky's role as an officer or executive of Second Mile might place the insurer in a "duty to defend" him. Meaning, the Second Mile's insurer could have to bear the costs of his civil defense. The insurance company may in such situations issue a "reservation of rights" and still pay for the costs - meaning that they reserve the right to challenge having to insure him or defend him. This duty to defend may also go along with a duty to insure him for damages. Of course, there is a separate issue of whether such an organization will itself be found liable for civil/personal injury damages to the victims. This would be on grounds that an employer or organization can be negligent in hiring/retaining/continuing to have an officer employee as their agent and allowing that person to use the authority of the organization as a means to get access to children.
But, if the Plaintiffs' lawyers can establish that such an organization's insurance policy has to insure the actions of the agent/employee/officer and they can show that there was a connection with him acting in his capacity as officer or agent of the organizing in allegedly committing acts, then they may be responsible for insurance coverage. Often, an insurance company will seek a "declaratory" judgment - a ruling from the court to declare whether there is insurance coverage. So,
