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.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| 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 | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
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
The coverage limits for general liability you can expect to see are $1 million per occurrence and $2 million in aggregate.
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.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can 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 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.
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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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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
Your building property can be covered for $60,000 on average, but coverage will depend on the value of all your covered property.
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.
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| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
Business owner’s policy combines different policies together. You will find general liability protection and commercial property protection, but other combinations are also possible. Some situations where you can use this policy are.
Someone gets injured on your business property that requires medical treatment.
A person vandalizes your foster care business property
Typically you can find coverage limits of $1 million for a business owner’s policy.
You might want a flood insurance policy if you expect to have a high amount of risk from natural events like rising water or floods. It might also be worth investing in a commercial crime insurance policy to protect against dishonest acts committed by your employees.
Professional liability coverage is usually excluded from business owner’s policy, as well as commercial auto insurance and workers' compensation. You will need to purchase a separate policy for these types of coverage in most cases.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance covers your equipment when it needs to be repaired or replaced, even when it is off your business premises. Some situations to utilize this policy include:
The heating unit for your foster care business malfunctions because of a power outage
A stroller for one of your foster children gets stolen
This policy might offer a medium coverage limit for equipment of around $5,000.
An equipment breakdown add-on might be necessary if the equipment you use suffers a mechanical failure or breaks as a result of a power surge.
If you live in an area with a high risk of flooding, a floodwater protection endorsement can be a good way to get extra protection for your tools and equipment.
Any damage to your equipment that is due to negligence or natural wear and tear would not be covered by tools and equipment insurance. Also, any intentional damage to your tools would be excluded as well.
Foster care car insurance–a commercial auto policy–protects any vehicles that you use during the course of business operations. Below are a few situations where this coverage can apply.
While driving a foster child to an appointment, you get into a collision accident
The car you use for your foster care business is vandalized and needs to be repaired
Commercial auto insurance is comprised of different components, which include:
Comprehensive–Coverage for virtually all physical damage to your vehicle that doesn’t come from a road collision like a fire or a car theft
Collision–Covers repair expenses if your business’s car got damaged after crashing to an object or another car
Auto liability–In the event you are found at fault for a vehicle accident, this component of commercial auto insurance will cover the medical treatment of third parties
Underinsured/uninsured motorist–Provides extra coverage when another motorist doesn’t have enough coverage to pay for damages to you that they incur
Rental reimbursement overage–Covers times when you need to pay for a rental car when your commercial car has been rendered inoperable
Roadside assistance–Reimburses you when your business car breaks down and needs to be towed to get off the road
No, commercial auto insurance is not required by law in most states, but you will need some form of coverage that can compensate someone for damages in the event of a vehicular accident.
Excess liability insurance is a booster allowing you to get extra coverage for an existing underlying policy. Situations to use this policy include:
Your general liability insurance offers $1 million but the bodily injury claim a third party filed against your business costs $2 million
Your general liability policy has been fully exhausted. However, another lawsuit has been filed and you need coverage
Excess liability provides extra coverage in particular situations that an underlying policy would ordinarily cover. Umbrella policies provide extra coverage but it may apply to multiple policies.
Worker’s compensation insurance protects the employees of your foster care business from lost wages and medical expenses due to injuries while working. See the list below for some examples.
A foster care employee tries to climb a ladder and injures their arm, causing them to miss work
One of your employees is struck by a baseball while playing with a foster kid, which needs medical treatment
A medical-only claim processes quickly because the injury and cost have been evaluated by a doctor, making an investigation less necessary.
There are a few common types of workers' compensation benefits you will find, which are outlined below:
Permanent partial–Covers workers who sustain an injury that leaves them unable to do some of their regular duties for life
Permanent total–Cover workers who lost their ability to earn income from their job due to injury that they will never recover from
Temporary partial–Covers workers who become partially impaired for a few weeks or months and can only perform a lighter set of duties
Temporary total–Provides benefits for workers that cannot work at all, but they will eventually make a full recovery
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $34 | $408 | $0-$500 |
| Professional liability insurance | $39 | $468 | $500-$1,000 |
| Commercial property insurance | $50 | $600 | $1,000-$2,000 |
| Business owner’s policy | $80 | $960 | $1,500 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Tools and equipment insurance | $44 | $528 | $500-$1,000 |
| Workers compensation insurance | $94 | $1,128 | $2,000-$5,000 |
The cost of a $1 million general liability insurance for your foster care facility is $34 per month or $408 per year. Factors that affect premiums are the types of foster care insurance coverage you want, deductibles, policy limits, your location, annual revenues, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $18 | $216 | Best overall; Fastest general liability insurance for foster care facilities |
| The Hartford | $22 | $264 | Workers compensation insurance for foster care businesses |
| CoverWallet | $25 | $300 | Comparing foster care business insurance quotes online |
| Tivly | $28 | $336 | Comparing foster care business insurance quotes over the phone |
| Thimble | $30 | $360 | On-demand demand coverage for foster care facilities |
| Hiscox | $32 | $384 | Fostering insurance that is unique for your business |
Get all the best quotes from leading providers in a click of a button!
Take a look at how some of the top foster agency insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for foster care facilities
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT offers a number of helpful components for your fostering insurance policy. They have general liability, professional liability, commercial auto, and more. NEXT has an A- AM Best rating, which it earned for its secure financials. It also has a B+ from the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for foster care facilities
Average cost: $18 per month
Our rating: 10/10
Long insurance industry history
Flexible claim tracking
Quick to resolve disputes
Renowned company for workers compensation insurance
Limited add-ons to general liability insurance
The Hartford has a number of different policies to choose from. They offer business owner’s policies, general liability, and commercial auto insurance, just to name a few. The company has a nurse-you-back-to-health program that complements a worker’s compensation policy to coordinate healthcare for injured employees. They have an A+ rating from AM Best.
Best for: Workers compensation insurance for foster care businesses
Average cost: $22 per month
Our rating: 10/10
Compare foster care insurance quotes online
Easy online policy management
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet is a digital marketplace for insurance that acts as your “wallet” for all the insurance policies you need to track them easily. They offer great fostering insurance components like commercial auto, general liability, and workers’ compensation. They have a page for child and youth services insurance that helps you get connected and figure out the coverage you need. CoverWallet has an A+ rating from BBB.
Best for: Comparing foster care business insurance quotes online
Average cost: $25 per month
Our rating: 10/10
Compare quotes over the phone
A partner of reputable insurance companies
Gives the insurance package that best meets your risk profile
You need to call to get a quote
Tivly connects you with over 200 insurance partners with big names like The Hartford, Liberty Mutual, and Progressive. They offer general liability, professional liability, worker’s comp, and all the policies you want in a good fostering insurance policy. They have an A rating with the BBB. Call now to compare quotes over the phone.
Best for: Comparing foster care business insurance quotes over the phone
Average cost: $28 per month
Our rating: 10/10
Quickly issues an estimate of your rates
Up to $500,000 commercial property coverage limits
Numerous add-ons to general liability insurance
You can’t reach customer service by calling
Thimble is an insurance provider that quickly gets you the tools and information to get your insurance policy fast. They offer fostering insurance components like general liability, professional liability, business owner’s policy, and business equipment insurance. This company has an A+ rating from the Better Business Bureau.
Best for: On-demand demand coverage for foster care facilities
Average cost: $30 per month
Our rating: 10/10
Customize policy limits easily
100 years of experience selling insurance
Worldwide coverage
14-day money-back guarantee
Online quoting may not be available all the time due to periodic site maintenance
Hiscox is a small business-focused insurance company, and its policies reflect that. It customizes its policies like industry-tailored childcare care policies that include general liability, business owner’s policy, workers’ compensation, and others. Hiscox has a solid A rating from AM Best and provides service for over 500,000 customers.
Best for: Fostering insurance that is unique for your business
Average cost: $32 per month
Our rating: 10/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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