Convicted child abuser Gerald Sandusky has looked to his homeowners’ insurer, State Farm, for defense and indemnity costs related to his criminal trial and a civil lawsuit filed against him.

On July 18, State Farm filed to have a federal judge declare the company has no obligation to defend the former Penn State University assistant football coach in any criminal case, and it does not have any duty to defend or indemnify Sandusky in a civil case naming his charity, The Second Mile, as a defendant.

Sandusky was found guilty on 45 of 48 counts related to the sexual abuse of boys.

The insurer has been providing a defense to Sandusky for the civil action filed in November 2011—shortly after he was first charged with sex crimes—involving his charity for children with dysfunctional families, according to court documents filed in U.S. District Court for the Middle District of Pennsylvania.

State Farm says it issued a “reservation of rights letter” to Sandusky, which informs a policyholder that an insurer may eventually deny coverage for all or part of the claim.

According to court documents, State Farm began insuring the Sandusky home in State College, Pa. in April 1985. It is primarily a Property Coverage policy, with limited Personal Liability coverage applying only to bodily injury caused by an occurrence.

The policy “excludes coverage for bodily injury that is intentionally caused by the policyholder” and it does not cover injury due to “willful and malicious acts of the policyholder.”

In addition, State Farm spokeswoman Arlene Lester tells NU the insurer has decided to stop its sponsorship of the football program at Penn State. “This includes pulling signage and radio ads for home games,” she confirmed.

Special Reports /

State Farm: Home Policy Offers No Coverage for Sandusky Defense

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