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

Table of contents

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) 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

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  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 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

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

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.




Business Owner’s Policy for Foster Care Businesses

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

What Coverage Limits Can I Find for Business Owner’s Policy?

Typically you can find coverage limits of $1 million for a business owner’s policy.


What Add-Ons Could a Foster Care Business Include in 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.


What is Not Typically Included in a Business Owner’s Policy?

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.


Tools and Equipment Insurance for Foster Care Businesses

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

What Coverage Limits Are Typical for Tools and Equipment Insurance?

This policy might offer a medium coverage limit for equipment of around $5,000.


What Add-Ons Would a Foster Care Business Need for Tools and Equipment Insurance?

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.


What Situations Are Not Covered by Tools and Equipment Insurance?

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.


Commercial Auto Insurance for Foster Care Businesses

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

Is Commercial Auto Insurance Legally Required?

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 for Foster Care Businesses 

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

What is the Difference Between Excess Liability and Umbrella Liability Insurance?

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.


Workers Compensation Insurance for Foster Care Businesses

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

What Type of Workers’ Compensation Claim is Easiest to Get Processed?

A medical-only claim processes quickly because the injury and cost have been evaluated by a doctor, making an investigation less necessary.


What Are Some Types of Workers’ Compensation Benefits?

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

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Fostering Insurance Cost

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

Compare Cheap Foster Care Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Fostering Insurance Companies

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. 


NEXT Fostering Insurance

Pros

  • 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 

Cons

  • 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 


The Hartford Fostering Insurance

Pros

  • Long insurance industry history

  • Flexible claim tracking

  • Quick to resolve disputes

  • Renowned company for workers compensation insurance

Cons

  • 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 


CoverWallet Fostering Insurance

Pros

  • Compare foster care insurance quotes online

  • Easy online policy management

  • HNOA coverage automatically included in general liability insurance

Cons

  • 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 


Tivly Fostering Insurance

Pros

  • Compare quotes over the phone

  • A partner of reputable insurance companies

  • Gives the insurance package that best meets your risk profile

Cons

  • 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


Thimble Fostering Insurance 

Pros

  • Quickly issues an estimate of your rates

  • Up to $500,000 commercial property coverage limits

  • Numerous add-ons to general liability insurance

Cons

  • 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


Hiscox Fostering Insurance

Pros

  • Customize policy limits easily

  • 100 years of experience selling insurance

  • Worldwide coverage

  • 14-day money-back guarantee

Cons

  • 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 

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