The article you cited refers to a Supreme Court of California case which upheld a clause in the school's insurance policy that excluded coverage for any claims arising out of sexual molestation. This means if a school district and it's personnel are sued they are on their own when it comes to defending the case. The insurance company will not provide attorneys to defend them or pay out damages that a civil court may award a plaintiff suing them.

An interesting post. I wonder if all such policies covering public and or private employers have such exclusions. A double edged sword. A molester faces the music on his own, but the bad part may be that a molested child cannot squeeze a judgment out of a molester found civilly responsible and won't get anything from the insurance company either.