Friday, May 31, 2019

Insuring Your Foster Care Agency - Are Changes In The Wind?

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!

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