The Hartford announced Friday that it has reached an agreement with the Boy Scouts of America and will pay $650 million to help settle sex abuse claims levied against the embattled organization.
In a statement, the insurer said that, in exchange for its payment, the BSA and its local councils “will fully release The Hartford from any obligations under policies it issued to the BSA and its local councils.”
The Boy Scouts, reeling from hundreds of lawsuits alleging the organization’s negligence failed to stop sexual abuse by Scout leaders, sued The Hartford in 2018 in an attempt to recover money for legal fees and settlements. The Hartford had argued that its policies, issued to the BSA in the 1970s, did not cover those claims.
The Hartford’s proposed settlement will have to be approved by abuse claimants and the courts. The company said it expects the deal to come into effect some time in the third quarter of this year.
The insurer disclosed that it set aside $225 million in the first quarter to put toward its payments.
The Boy Scouts of America filed for Chapter 11 bankruptcy protection in February 2020 and since then has been working to establish a victims compensation fund. It will include money from local councils and the national organization, together with payments from insurance companies such as The Hartford.
The BSA plans to auction off about half of its art collection, which includes some Norman Rockwell paintings.
