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Insurer avoids $10 million judgment in swim coach sexual abuse case - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurer avoids $10 million judgment in swim coach sexual abuse case by Richard Sine Claims Disputes , General liability May 19, 2026 A unit of Nationwide Mutual has won a recommendation to dismiss a coverage lawsuit brought by a competitive swimmer who was trying to collect a $10 million sexual abuse judgment against her former coach. In No. 5:25-CV-00270-M , U.S. Magistrate Judge Robert T. Numbers II in North Carolina last week recommended that a federal district court dismiss all claims brought by the victim against National Casualty, a Scottsdale, Arizona-based insurer that had issued liability policies to USA Swimming covering the coach and his swim club. While acknowledging the seriousness of the victim’s injuries, the court ruled the claim was excluded under the policy’s wording. The victim was sexually abused as a minor by Nathan Weddle, who coached her at Capital Area Swim Team, a club he operated as a sole proprietorship in Raleigh, North Carolina. The victim originally sued USA Swimming, the club, the facility where some of the abuse occurred, Mr. Weddle and his girlfriend. A jury found in favor of USA Swimming. The former coach and the club then entered into a $10 million consent agreement with the victim, assigning rights to any insurance. With the former coach in prison, the victim sought to collect from National Casualty, which had issued a commercial general liability policy and a commercial excess policy to USA Swimming that extended coverage to member clubs and coaches. National denied coverage, and the victim filed suit. The court found that Mr. Weddle was explicitly excluded from coverage under the policy’s sexual abuse endorsement, which carved out any person who “personally participated” in sexual abuse. Second, it found that the club had no legal existence apart from Mr. Weddle. Because he operated the club as a sole proprietorship under an assumed name, the court found that the two were legally inseparable and therefore the club could not be considered an insured under the policies. “This opinion does not minimize either the severity of (the victim’s) injuries or the practical consequences of an absence of insurance coverage,” the judge wrote. “But the outcome of this case turns on the policies’ language and North Carolina law.” The ruling is a magistrate’s recommendation and is subject to review by the district judge. The plaintiff has two weeks to object. The former coach is serving a 29-year prison term on charges of abusing the victim when she was 15 years old. 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