NU Online News Service, July 12, 3:08 p.m.EDT

The scathing investigative report regarding the handling ofchild sex abuse at Pennsylvania State University by Gerald A.Sandusky supplies plaintiffs' attorneys with a “roadmap ofeverything that went wrong.”

Maxwell S. Kennerly of the Beazley Firm in Philadelphia says thereport by independent firm Freeh Sporkin & Sullivan suppliesattorneys of Sandusky's victims with countless leads andguidance.

“Everything is right there—what to ask; who to ask; what toallege,” he says.

The Freeh report,released today, bashes the university's leaders for the “totaldisregard for the safety and welfare of Sandusky's child victims bythe most senior leaders at Penn State,” says Louis Freeh inprepared remarks.

Sandusky, a former assistant football coach for the NittanyLions, was found guilty on 45 of 48 counts related to the sexualabuse of children, many on school grounds. Freeh says the report,commissioned by the school, looked to clarify who knew what andwhen—and to examine policies and procedures.

The findings conclude that “in order to avoid the consequencesof bad publicity, the most powerful leaders at Penn StateUniversity (including then-head football coach Joe Paterno)repeatedly concealed critical facts relating to Sandusky's childabuse from the authorities, Board of Trustees, Penn State communityand the public at large,” Freeh says.

The board is not free of blame, Freeh says. It “failed to createan environment which held the university's most senior leadersaccountable to it,” and it did not demand more information aboutthe sexual-abuse allegations.

In terms of insurance coverage, DianaReitz, editorial director for the reference division of TheNational Underwriter Co., says she finds it hard to come up with away Penn State will get coverage.

“This report is so damning,” she says. “A lot depends on policylanguage, but I think it's pretty much been decided that this won'tbe covered.”

Exclusions regarding intentional acts and knowledge, forinstance, could get insurers in the clear.

Even before Sandusky went before a jury, Penn State and itsprimary General Liability insurer, Pennsylvania Manufacturer'sAssociation Insurance Co. (PMA), filed lawsuits against each otherover legal expenses. PMA says it has no duty to defend.

As pointed out in a column by Reitz, Penn State and United Educators—reportedly thewriter of the university's Educators Legal Liability coverage—arecurrently not waged in litigation.

Reitz says United Educators is typically “very good at helpingits members get through situations,” but she doubts the insurerwill be picking up any of the costs related to settlements of civillawsuits.

Kennerly says the report will likely work even more to persuadethe university to settle with victims of Sandusky.

“This will probably force [Penn State] to be very generous andspare anyone else any more agony and pain,” Kennerly says. “Theyare going to work to give [victims] what they are going to get froma jury.”

The funds will likely come from the school's captive insurer,Nittany Insurance.

When Sandusky and university leaders were first charged,Penn State said its insurance would pay for the defense of TimCurley, athletic director, and Gary Schultz, vice president forfinance and business. Both are charged with perjury.

Shortly after Sandusky was convicted, Penn State asked victimsto participate in a program to resolve Sandusky-related claimsagainst the school.

Kennerly says a major motivation of victims is an honest desireto make sure something like this never happens again, and itappears Penn State has “genuinely shown a strong want to reform itspractices.”