The landscape is definitely changing when it comes to insuring your foster care agency. Many agencies are receiving non-renewal notices, or their premiums have increased substantially, even without a large claim history. What is the reasoning behind these dramatic and sometimes very shocking changes?
Some contributing factors:
- The high-risk factors associated with child welfare
- Claims increasing in severity and frequency
- Nonprofits are diversifying their services, thus increasing their exposures
- Contracts are requiring higher limits, resulting in higher premiums
- Changes in carrier appetites and the types businesses they will cover/not cover
- Changes in policy forms
As a result, Carrier risk management requirements are being raised. Creating a robust risk management program is imperative in controlling your losses, premiums and meeting carrier requirements. Start by electing a risk management officer or mandated reporter, create a formal incident reporting program and reduce and manage a social worker’s caseload/workload. This is a great place to start.
So, what is your foster care agency to do in these changing times? Contact a specialist. Hawley& Associates specializes in hard-to-place risks, including adoption & foster care. Our broad access to specialized markets and innovative risk management tools allows us to partner in and empower mission!