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.Â
| 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.Â
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.
