The Risk of Employing Humans: Sexual Abuse and Molestation Danger By Kurt D. Kelley

Any Manufactured Home Community (MHC) owner recently seeking to finance or refinance a property is well-versed in Sexual Abuse and Molestation (SAM) risk, SAM insurance coverage, and costs. While these claims remain rare in for MHC operators, they are a stealth nuclear bomb of liability that has financially crippled businesses, schools, and non-profits. 

During a visit with a rare underwriter that writes SAM coverage, I asked him what worried them the most. Here’s his answers and my risk reduction recommendations for each:

Workers in remote or unsupervised locations 

Employ and Contract Workers in a business entity (LLC etc.) that’s separate from the entity that owns your valuable real estate and assets. Manage, employ, and contract via a separate business entity. 

Place cameras in work areas. Advise employees the cameras are there to protect them and the company. 

Have virtual office software for all company computers. Here, workers stay logged in all day. Management can see who’s at their desk and virtually enter their offices any time. Examples are Gather.town and Sococo.com 

Workers entering tenant occupied residences 

 All workers who enter rental homes must be screened for prior sexual offenses. 

Workers must never enter homes occupied by children when no adult is present. 

Use and follow all the protocols noted on Mobile’s Performance Agreement for Rental Home Contractors found at MobileAgency.com / Forms Tab. 

Avoid Day Care, After School Programs and Short Term Rentals 

If these are truly necessary for your residents, have them owned and operated by insured third parties. Short term rentals are often where unapprovable tenants congregate.