Foster Care Insurance: Cost & Quotes From $30/mo

Table of contents
1. General Liability Insurance for Foster Care Businesses1.1. What Coverage Limits Can I Expect to See for General Liability Insurance?1.2. What Are Some Good Add-Ons for General Liability Insurance?2. Professional Indemnity Insurance for Foster Care Businesses2.1. What Are the Coverage Limits for Professional Indemnity Insurance?2.2. What Add-Ons Should I Pick Up for Professional Indemnity Insurance?3. Commercial Property Insurance for Foster Care Businesses3.1. What Coverage Limits Will Commercial Property Insurance Have?3.2. What Add-Ons Should I Get for Commercial Property Insurance?4. Business Owner’s Policy for Foster Care Businesses4.1. What Coverage Limits Can I Find for Business Owner’s Policy?4.2. What Add-Ons Could a Foster Care Business Include in a  Business Owner’s Policy?4.3. What is Not Typically Included in a Business Owner’s Policy?5. Tools and Equipment Insurance for Foster Care Businesses5.1. What Coverage Limits Are Typical for Tools and Equipment Insurance?5.2. What Add-Ons Would a Foster Care Business Need for Tools and Equipment Insurance?5.3. What Situations Are Not Covered by Tools and Equipment Insurance?6. Commercial Auto Insurance for Foster Care Businesses6.1. Is Commercial Auto Insurance Legally Required?7. Excess Liability Insurance for Foster Care Businesses 7.1. What is the Difference Between Excess Liability and Umbrella Liability Insurance?8. Workers Compensation Insurance for Foster Care Businesses8.1. What Type of Workers’ Compensation Claim is Easiest to Get Processed?8.2. What Are Some Types of Workers’ Compensation Benefits?9. Fostering Insurance Cost10. Best Fostering Insurance Companies10.1. NEXT Fostering Insurance 10.1.1. Pros10.1.2. Cons10.2. The Hartford Fostering Insurance 10.2.1. Pros10.2.2. Cons10.3. CoverWallet Fostering Insurance 10.3.1. Pros10.3.2. Cons10.4. Tivly Fostering Insurance 10.4.1. Pros10.4.2. Cons10.5. Thimble Fostering Insurance  10.5.1. Pros10.5.2. Cons10.6. Hiscox Fostering Insurance 10.6.1. Pros10.6.2. Cons

It’s essential for many foster care facilities to invest in a good insurance policy. A nanny you employed might abuse the kids and insurance can help cover the cost of the resulting lawsuit. This article will look at some of the critical components of fostering insurance, the cost of premiums, and the best companies to consider working with. 

General Liability Insurance for Foster Care Businesses

CoverWallet NEXT (Best)ThimbleHiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit $2,000,000

Advertising injury coverage aggregate limit $1,000,000$1,000,000$2,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit 
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoNoCan be includedCan be included
Equipment breakdown floater included?No YesYesCan be includedCan be included
Can you get a certificate of insurance online?YesYesYesYesYes
Name additional insureds?YesYes

General liability coverage is a critical component of foster care insurance that protects your business against bodily injury and property damage claims from the public and those you serve. Some specific incidents where this insurance can help include:

  • A child hits his head on the table and gets injured

  • One of your foster children causes damage to a neighbor's yard, which he sues you for in court

  • While visiting your foster care center, a member of the public slips and injuries his neck

What Coverage Limits Can I Expect to See for General Liability Insurance?

The coverage limits for general liability you can expect to see are $1 million per occurrence and $2 million in aggregate.

What Are Some Good Add-Ons for General Liability Insurance?

If you have employees at your foster care business, you may want to add some additional coverage for employment-related practices to protect against legal suits from things like wrongful termination.

Another add-on for general liability to consider is an umbrella policy. This lets you get expanded coverage limits beyond what your written policy will typically allow.

Professional Indemnity Insurance for Foster Care Businesses

CoverWallet NEXTThimble (Best)HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000$1,000,000$2,000,000
Name additional insureds?YesYesYesYesYes
Waiver of subrogation included?YesNoYesCan be includedNo
HIPAA coverage included?NoNoNoNoNo
Sexual misconduct coverage included?NoNoNoNoCan be included
License defense coverage included?NoNoNoNoCan be included
Deductible $500$500$500$50/$10,000$500

Foster home insurance with professional indemnity coverage protects your business against claims of negligence, breach of confidentiality, inaccurate advice, and other related perils. Some examples of when to use this insurance include:

  • A foster care employee loses track of a child they are in charge of, and they get injured by falling
  • An employee of your business relayed the wrong information and cause financial losses to concerned parties

What Are the Coverage Limits for Professional Indemnity Insurance?

A standard coverage limit for this type of foster parent liability insurance is 1 million per occurrence limit and a $1 million aggregate limit for the duration of your policy.

What Add-Ons Should I Pick Up for Professional Indemnity Insurance?

Abuse and molestation coverage is a good pick-up for your policy since kids and youth will be involved in your business. This coverage protections you against sexual abuse claims made against you or your employees.

Another add-on common to the professional indemnity coverage of a foster parent insurance package is extended reporting period. This allows you to file a claim on the professional indemnity policy even after it expired.

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Commercial Property Insurance for Foster Care Businesses

CoverWalletNEXT (Best)ThimbleHiscoxThe Hartford
Building coverage limit (minimum)$50,000$260,000$25,000/$500,000$25,000$60,000
Contents coverage limit (minimum)$50,000$22,000$25,000/$500,000$25,000$60,000
Outdoor signsExcluded$2,500ExcludedExcludedExcluded
Accounts receivable ExcludedExcluded$5,000/10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keys Excluded$2,500ExcludedExcludedExcluded
Business interruption floaterExcludedIncludedIncludedIncludedExcluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500IncludedExcluded

Commercial property insurance protects your business property and helps you pay for it repair or reconstruction. Some examples of when to use this policy are listed below:

  • Someone breaks into your foster care business and steals some property contained within it

  • A fire gets out of control in your area and damages some of your business property

What Coverage Limits Will Commercial Property Insurance Have?

Your building property can be covered for $60,000 on average, but coverage will depend on the value of all your covered property.

What Add-Ons Should I Get for Commercial Property Insurance?

An add-on you will want is business interruption insurance. This covers employee wages, lost income, utility services, and other related costs in case you need to relocate, renovate, or close temporarily after a covered peril happens. 

Earthquake insurance can protect your business in the event of a land movement or landslide causing property damage. Earthquakes are not always included in insurance protections by default.