Yes. Same as schools, day cares, summer camps, and bus companies.
It feels sketchy, but the alternative is that when a victim sues them they don't have much in the way of assets or just declare bankruptcy.
I don't think lack of insurance coverage has stopped many predators before.
Thinking about it that way, saying “oh, we just won’t ever have any abuse at this institution where adults have close contact with and power over minors, a thing that attracts abusers” would be ridiculous.
Also, insurance companies don't like to pay out. If they cover an organization, they're going to make sure there are basic processes in place to prevent claims--background checks, procedures on interacting with minors, etc.
Obviously not foolproof, but better than many orgs would do on their own.
