Proposals to improve civil compensation access for sexual abuse survivors have insurance repercussions for organisations involved in the care of children, the Insurance Council of Australia (ICA) says.

Liability underwriting for child sexual abuse in Australia is not a large or expanding market and not all insurers are prepared to offer cover, ICA says in a submission to a WA Department of Justice discussion paper.

“Those that do offer this type of insurance to institutions often do so very selectively. It is within this context that changes to liability settings should be carefully considered,” it says.

WA is the latest state to look at introducing legislative recommendations made by the Royal Commission into Institutional Responses to Child Sexual Abuse.

The proposed changes, which aim to improve access by survivors to compensation and strengthen deterrence, include reversing the onus of proof, so liability would exist unless an institution proved it took “reasonable steps” to prevent abuse.

The changes would introduce a non-delegable duty of care, and propose that an institution’s liability should be extended beyond employees to people associated with the organisation.

ICA has previously provided submissions to the royal commission and to other state and territory departments on the potential impact of the proposals.

“Our members advise that the introduction of a non-delegable duty of care or a reverse onus of proof may particularly impact smaller organisations in regard to their ability to access affordable insurance for child abuse risk,” it says in the WA submission.

Broadening the scope of people to which an institution may be vicariously liable further increases the underwriting impact.

ICA says it strongly supports measures that promote and lead to direct risk mitigation that reduces the likelihood of abuse occurring, but warns smaller organisations likely to be particularly exposed to difficulties gaining insurance may need assistance.

“Programs that educate and provide support for smaller, less resourced organisations could be undertaken to help create safer environments for children that directly reduce risk,” it says.

Victoria and NSW have already reversed the onus of proof and made other changes, while the Queensland Government introduced a bill into Parliament last November.