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Insurance for Fostering Agencies

Insurance is essential for Fostering Agencies 

At Homewood Insurance, we provide liability insurance tailored for foster care providers to safeguard children, families, staff, and the agency itself. Let's examine what your policy should include, typical costs for General Liability and Professional Liability insurance, and which activities can lead to higher premiums or coverage denials.

  • What Insurance Includes – breakdown of Professional Liability insurance and General Liability insurance for foster care agencies.
  • Cost of Coverage – premium ranges and the key factors that drive insurance pricing for foster providers.
  • Higher-Risk Exposures – activities that may increase premiums or cause carriers to refuse coverage.
  • Why Work With Homewood – how we help foster care providers secure the right protection at competitive rates.

Get a Free Quote Now

The fastest way to secure insurance for your foster care agency is to fill out our quick quote form. Homewood will compare policies from multiple carriers and deliver a customized proposal to protect your staff, your foster families, and the children in your care.

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Insurance for Fostering Agencies can include:

  • Professional Liability insurance protects against allegations of negligent placement, failure to supervise, or inadequate case management.
  • General Liability insurance covers third-party bodily injury and property damage involving foster children, families, or visitors.
  • Policies include staff liability for social workers, behavioral specialists, and placement coordinators.
  • Coverage extends to supervised visitation, transportation, training, and 24/7 on-call services.
  • Optional endorsements available for therapeutic foster care, group homes, and crisis placements.
  • Standard limits are typically $1M per claim / $3M aggregate, with options for tail coverage, prior acts, and abuse/molestation coverage.

More Information

Insurance for Cancer Treatment Centers can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice)

    1. Coverage for claims of negligent placement, inadequate supervision, or failure to intervene.
    2. Legal defense for abuse or mistreatment allegations involving children in foster homes or agency care.
    3. Staff professional liability for case managers, social workers, counselors, and placement coordinators.
    4. Coverage for incidents during supervised visitation, sibling placements, or therapeutic foster care programs.
    5. Optional endorsements for transitional housing, emergency placements, and group family foster homes.
    6. Protection for compliance with state licensing, caregiver training, and background check requirements.

  2. General Liability

    1. Coverage for third-party bodily injury (e.g., slips, falls, or accidents at agency facilities).
    2. Protection against property damage claims caused during foster placements or supervised activities.
    3. Includes personal and advertising injury for claims involving defamation or breach of privacy.
    4. Suitable for licensed agencies, nonprofit foster programs, group homes, and crisis response providers.
    5. Tailored endorsements to meet state contract, grant funding, or licensing requirements.

Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price.

Get a quick quote now.

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Cost of Coverage:

Premiums are influenced by specialty mix, litigation environment, facility size, and claims history. Carriers also evaluate risk management protocols such as credentialing, peer review, and informed consent.

Professional Liability (PL / Malpractice) – Estimated Ranges

  • Small agencies or single-office programs: $3,000–$7,500 annually.
  • Mid-sized agencies with multiple placements and staff: $8,000–$15,000 annually.
  • Large multi-site agencies or therapeutic foster programs: $20,000+ annually.

Costs are driven by number of children placed, staff count, claims history, and abuse prevention protocols.

General Liability (GL) – Estimated Ranges:

  • Small agencies: $1,200–$3,500 annually.
  • Mid-sized agencies or group homes: $4,000–$8,000 annually.
  • Large foster networks or multi-location agencies: $10,000–$15,000+ annually.

GL pricing depends on facility condition, visitor traffic, transportation services, and incident history.

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High-Risk Procedures and their Impact on your Premiums

Foster care agencies operate in one of the most heavily scrutinized environments in liability insurance. Certain practices can trigger premium increases of 50–100% or more, exclusions, or outright denial of coverage. Carriers look for strong policies on abuse prevention, staff training, documentation, and compliance to reduce risk.

High-Risk Procedure/Activity Why It’s Considered High-Risk Potential Insurance Impact
Negligent Child Placement Improper matching increases likelihood of harm, trauma, or lawsuits. PL exclusions or denials; premiums can rise 50–100%+ for agencies with history of disruptions.
Inadequate Supervision of Placements Insufficient monitoring can lead to undetected abuse or injury. Common cause of non-renewals; GL/PL premiums increase due to social inflation.
Mishandling Abuse Allegations Delayed investigations or failure to act expose children to harm. High chance of denial without SAM endorsements; abuse coverage premiums surge.
Administering Medical/ Therapeutic Care Without Training Increases malpractice exposure if errors occur during care. PL premiums escalate; denials common without medical oversight.
Behavioral Management Techniques Use of restraints or discipline methods can lead to abuse claims. Increases GL premiums; exclusions or refusals without training protocols.
Insufficient Background Checks or Training Oversight failures can place children at risk; agencies held liable. Frequent cause of non-renewals; premiums rise with weak vetting practices.
Managing Communicable Diseases Poor protocols can cause outbreaks in group settings. Premium surcharges; denial possible without dedicated coverage.
Documentation & Confidentiality Failures Incomplete records or privacy breaches increase liability. Impacts PL coverage; carriers may deny or hike rates for non-compliance.

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Other types of Insurance Fostering Agencies
may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members such as medical professionals or counsellors will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for your organization against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the social services industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects fostering agencies and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

Some carriers will underwrite cancer treatment centers with strict attention to risk. At Homewood, we help you:

  • Match with carriers that accept your procedures and operational profile
  • Strengthen submissions by reviewing credentialing, consent processes, and safety protocols
  • Negotiate favorable limits, tail coverage, and endorsements at competitive rates

Call 947-274-3093 or
Fill Out the Form

Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Fostering Agencies at the best price. You can call him or fill out the form and he will get your message directly.