insurance for fostering agencies

assessing their needs

insurance for fostering agencies

Westwood will work with you to ensure all your foster care provider clients have the best insurance  coverage for every threat they could possibly face.

Quick Quote for Medical Malpractice Insurance

Commercial insurance agents who wish to provide fostering agency insurance need to have an in-depth understanding of the unique challenges that fostering agencies face. This ensures that they can provide tailored insurance solutions that offer adequate protection. Here are some challenges facing fostering agencies that insurance agents should be aware of:

  1. Allegations of Abuse or Maltreatment: Fostering agencies are constantly at risk of facing allegations, whether founded or unfounded. This can result from misunderstandings, actual incidents, or disgruntled parties. Insurance agents should ensure that fostering agencies have adequate liability coverage for these situations.
  2. Frequent Change of Residence: Foster children may move frequently, potentially increasing the risk of injury or damage during transitions. It’s essential to consider this when crafting a policy.
  3. Variability in Standards and Regulations: Different states or regions may have varying standards and regulations for foster care. Insurance agents should be knowledgeable about these local differences to offer the most appropriate coverage.
  4. Mental and Emotional Health Issues: Many foster children come from traumatic backgrounds and may have behavioral or mental health issues. This can present potential risks in the foster home, requiring additional layers of coverage.
  5. Data Privacy and Cybersecurity: Fostering agencies handle sensitive information about children and their biological families. A data breach could have serious implications. Cyber liability insurance is crucial in this context.
  6. Property Damage: Foster children with behavioral challenges might unintentionally cause property damage. Ensuring that fostering agencies have suitable property insurance that covers these potential damages is essential.
  7. Vicarious Liability: Fostering agencies can be held vicariously liable for the actions of their foster parents or any contracted party. It’s essential to have an insurance policy that extends to such scenarios.
  8. Medical Issues: Ensure that there’s coverage for medical incidents that might arise, especially if a foster child has pre-existing conditions or is prone to injuries.
  9. Transportation Risks: If fostering agencies provide transportation for children, there are inherent risks involved, requiring specialized auto insurance coverage.
  10. Professional Liability: This covers claims made against fostering agencies for mistakes, errors, or negligence in the services they provide. For instance, if a match between a foster child and family isn’t deemed appropriate later on and leads to issues, the agency could be held liable.
  11. Employment Practices Liability: Fostering agencies can face claims from their employees related to wrongful termination, discrimination, or other employment-related issues.
  12. Regulatory and Legal Changes: The legal landscape for foster care can change, leading to potential risks for agencies. Insurance agents should stay updated on any legislative changes that might affect coverage needs.

By understanding these challenges, commercial insurance agents can better serve fostering agencies, ensuring that they have comprehensive protection against potential risks. It’s also beneficial for insurance agents to foster close relationships with these agencies, providing periodic reviews to adjust coverage as needed.

what specific insurance do they need?

Fostering agencies face unique risks, and to protect themselves, they typically require specialized insurance coverages. Here are some specific insurance types fostering agencies should consider:

  1. General Liability Insurance: This is a foundational policy that protects against claims of bodily injury or property damage arising from agency operations.
  2. Professional Liability (Errors and Omissions) Insurance: This covers the agency against claims of negligence, mistakes, or failure to deliver services as promised. Given the delicate nature of foster placements, any perceived mismatches or adverse outcomes can lead to potential lawsuits.
  3. Abuse and Molestation Liability: Due to the sensitive nature of foster care, this coverage is essential. It protects against claims related to alleged abuse or molestation by employees, volunteers, or foster parents affiliated with the agency.
  4. Directors and Officers (D&O) Liability Insurance: This provides protection for directors and officers of the agency against legal judgments and costs arising from certain types of wrongful acts or negligence in their capacities.
  5. Cyber Liability Insurance: This protects the agency from risks associated with data breaches and other cyber threats, given that they handle sensitive data about children and their biological families.
  6. Workers’ Compensation: Covers medical expenses and a portion of lost wages for employees who get injured or become ill due to their job.
  7. Commercial Property Insurance: This protects the physical assets of the agency, such as buildings, furniture, and equipment, from risks like fire, theft, or natural disasters.
  8. Commercial Auto Insurance: If the agency owns or operates vehicles, especially for transporting children, this insurance covers liability and potential damages in case of accidents.
  9. Umbrella or Excess Liability Insurance: Given the high-risk nature of foster care, agencies might opt for additional liability coverage beyond what’s provided by their primary policies, ensuring broader protection against large claims.
  10. Employment Practices Liability Insurance (EPLI): This protects against claims made by employees regarding wrongful termination, discrimination, harassment, or other employment-related issues.
  11. Fidelity Bond/Crime Insurance: Protects the agency from financial losses due to fraudulent acts, theft, or dishonesty by employees.
  12. Medical or Health Insurance for Foster Children: Depending on the jurisdiction, some agencies might be responsible for ensuring that foster children have adequate health insurance.
  13. Special Events Insurance: If the agency holds fundraisers or public events, this insurance covers potential liabilities associated with those events.

It’s crucial for fostering agencies to work closely with experienced insurance agents or brokers familiar with the foster care system’s intricacies. Regular reviews and assessments of coverage are recommended to ensure that the agency remains adequately protected as circumstances and regulations evolve.

 advice for commercial agents wanting to provide fostering agency insurance

When approaching fostering agencies, commercial insurance agents should recognize the unique and sensitive nature of foster care operations. These agencies navigate a delicate balance of safeguarding children’s welfare while coordinating with biological families, courts, and other entities. As such, fostering agencies are exposed to a range of potential risks, from allegations of abuse or maltreatment to challenges arising from frequent residence changes and data privacy concerns. Therefore, it’s crucial for insurance agents to offer tailored insurance solutions that address these multifaceted challenges. Key coverages to consider include General and Professional Liability, Abuse and Molestation Liability, Cyber Liability, and Directors and Officers Liability. Building a deep understanding of the foster care landscape and establishing trustful relationships with these agencies will be essential for ensuring they are adequately protected against potential risks.

Contact Michael Richards now

Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:

Michael Richards

sourcing the best insurance for fostering agencies is essential for commercial agents


General Liability Insurance

General Liability insurance cover medical expenses and attorney fees which result from bodily injuries and property damage that your company or organization could be legally responsible for.

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Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance (E&O) and medical malpractice insurance, protects your business against claims of negligence, malpractice, errors, and omissions which may have occurred during the fulfillment of a professional service.

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Telemedicine Malpractice Insurance

telemedicine malpractice insurance—also known as digital health insurance or eHealth insurance—has become increasingly vital for healthcare providers. to  protect them against claims of negligence, malpractice, errors, and omissions which may be the result of the limitations of webcam quality or the inability of a patient to properly photograph a condition. It can also cover cyber liability, such as remote controlled medical devices being hacked.

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Directors and Officers Liability (D&O) insurance

D&O insurance (Directors and officers liability insurance), shields the personal assets of company directors and officers, and where necessary, their spouses, from claims which could arise as a result of the decisions they made and actions they took within the scope of their regular duties.

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Cyber liability insurance

Cyber liability insurance covers the financial costs associated with a breach of your cyber security, such as a ransomware attack. It also covers first party costs including event management, data restoration, financial costs to third parties, network interruption, and cyber extortion.

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RAC Audit Insurance

RAC Audit Insurance is a shield against the financial implications of audit discrepancies, and a testament to an organization's commitment to proactive risk management. As the wave of regulatory oversight intensifies, understanding and embracing RAC Audit Insurance becomes paramount for the healthcare and senior living industries alike.

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HNO Insurance

HNOA, (hired non-owned auto insurance) is designed for organizations who regularly hire vehicles or require employees to use their own vehicles in the course of their work. In the case of an accident where your employee was liable, it could cover physical damage to that other person’s vehicle, medical expenses, the cost of hiring an attorney to defend your business.

Workers’ Comp. Insurance

Workers’ compensation insurance covers your employees for workplace injuries or illness. It provides them with medical and wage benefits.

This coverage is mandated by each state, with the wage and medical benefits varying from state to state. Workers compensation also protects business owners from civil suits by workers who become injured on the job.

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Employment Practices Liability

Employment practices liability insurance (EPL insurance or EPLI), covers employers (PDF) against claims made by employees for:

  • Discrimination (based on sex, race, age or disability, for example)
  • Wrongful termination
  • Harassment
  • Failure to promote and other employment-related issues
Sexual Abuse & Molestation (SAM)

Sexual Abuse and Molestation Insurance provides coverage for organizations against claims arising from alleged sexual misconduct or molestation by an employee or other representative of the organization. 

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Environmental Liability insurance

Environmental Liability insurance is liability insurance specifically designed to protect environmental liabilities. This is a specialized form of general, commercial liability insurance that provides financial protection against litigation and clean-up costs resulting from claims of injury or damage caused by pollution, contamination or hazardous waste disposals. 

Commercial Property Insurance

Commercial property insurance is a fundamental component of risk management for healthcare and senior living providers. It is designed to protect the organization’s physical assets, such as buildings, medical equipment, furniture, and supplies, from financial losses due to damage or theft.

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Crime Insurance

Crime Insurance covers the insured party a reimbursement if their property is damaged due to a crime. Crime Insurance usually has a huge range of options and comes in different forms. It can be either a rider that can be attached to the existing insurance policy, or it is available as a completely separate product.

Commercial Auto Insurance

Commercial auto insurance is a crucial aspect of risk management for healthcare and senior living providers. It offers vital financial protection against vehicle-related incidents and is often required by law.

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Fully/Partially Funded insurance

Partially Funded insurance gives facilities the opportunity to pay a set premium for, and then in turn is  partially covered for specific risks.

Fully Funded Insurance allows facilities to pay premiums to have coverage against all risks. In return, if they are unfortunate enough to incur any of the covered loss or injury, they are reimbursed their insurance policy amount.

Excess and umbrella coverage

Excess coverage provides an additional layer of protection over and above what an underlying policy provides. It applies to a single policy only.

An umbrella policy on the other hand, provides additional liability coverage over and above what is provided by a number of underlying policies.

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we've got you covered

General Liability Insurance

Protecting healthcare organizations against increasingly crippling litigation.

Professional Liability Insurance

Protecting medical professionals against increasingly crippling litigation.

Medical Malpractice Insurance

Protecting medical professionals against increasingly crippling litigation.

Cyber Liability Insurance

Protecting healthcare organizations & professionals against cyber attacks.

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insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

traditional insurance products

Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.

    Insurance products at Westwood Insurance Group

    You can find more information on the Insurance Products main page.

    If you have any questions on the different policies, check out our Insurance FAQ’s

    alternative structures

    Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:


    If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.