We who support the industry need to take time to ask questions. Risk managers, attorneys, mental
health professionals and others can’t assume what kind of setting we are dealing with when asked for
professional advice.

In my roles as an insurance provider, trainer and risk manager I am intrigued by the changes. It only
takes a few minutes to ask the questions that help me understand the setting. While the approach to
these various setting is similar, there are subtle differences.

It is important to define and clarify what kind of setting we are dealing with. It will help improve
outcomes.

Here is an excerpt; Health and Safety Code Section 1527.2 – “The fund, subject to this article, shall pay, on behalf of foster family homes, any claim of foster children, their parents, guardians, or guardians ad litem for damages arising from, and peculiar to, the foster-care relationship and the provision of foster-care services, or shall reimburse foster family homes and small family homes for those damages.”

This is a perk for these Foster Families. It helps Foster Parents with law suits resulting from the injury or death of a foster child.

There are exclusions that limit what California Foster Home and Small Home Insurance Fund will pay for:

Section 1527.3

(d) “any loss arising out of the licentious, immoral, or sexual behavior on the part of a foster parent intended to lead to, or culminate in any sexual act.”

(e) “any allegation of alienation of affection against a foster parent.”

While alienation of affection has not been a common accusation against foster parents, Allegations of physical and sexual abuse are much more frequent.

As a result of these exclusions, some California Counties have followed the lead of the FFAs and purchased coverage for their foster parents, that does not have these exclusions.

California Foster Parents may benefit by asking their placement agency about insurance.

• Are you covered as one of their Foster Homes?
• What are you covered for?
• What are the exclusions?

the Provider accepts full responsibility for identifying and determining the type(s) and extent of liability insurance necessary to provide reasonable financial protections for the Provider and clients to be served under this contract. The limits of coverage under each policy maintained by the Provider do not limit the Provider’s liability and obligations under this contract. Upon the execution of this contract, the Provider shall furnish the Agency written verification supporting both the determination and existence of such insurance coverage.

This means that the Adult Foster Care Provider must buy coverage for his operation but the Florida ADP provides no guidance as to the type or limits that the Provider should buy.
The possibility exists that the Provider could buy the “wrong” coverage for their needs and still comply with the requirements set out in their contract with the Florida APD.

What is the “Right” coverage for these homes?

• Liability coverage that is specific to the needs of the care providers.
• These coverages should include;
• Coverage that the protects the Provider’s finances from law suits resulting from the injury or death of a client
• Protection from allegations of physical and/or sexual abuse

To make sure Florida care providers get the right coverage at a fair price should contact an expert in the field of care provider/foster care insurance.

While they have the same basic insurance issues as any other family; car insurance, homeowners insurance, Foster Parents have financial risks that biological parents don’t have.  When a child is injured or makes allegations of abuse it creates financial risk for Foster Parents.  The natural parents can sue in these cases.

What insurance works in these cases?

Some states have state sponsored funds that protect the assets of Foster Parents from lawsuits.  Some states buy a blanket policy for all the licensed homes in the state.  Still others have joint underwriting authorities that force insurance companies doing business in that state to pick up the risk.  At the agency level; many agencies buy coverage for their parents from commercial insurers.  In all these cases the coverage varies, so be sure to check with your state or agency for specifics.

What if I my state or agency doesn’t provide coverage?

Ask your agency if they would be willing to purchase coverage.  If not, “Foster Parent Professionals” can help direct you to whatever resources are available in your area.

“I am a foster parent proud to save the world one child at a time. I know how to feed, clothe, love, and nurture a child. I am eager to absorb the information and training the agency has given to me. I’ll be the best fosterer ever.” When we encounter it, this type of energy helps to elevate us all. Even though this scenario might reflect the attitude of a foster parent on the upper end of the enthusiasm curve, it is not uncommon. These beautiful souls are the backbone of the foster care system. They go about their days doing what needs to be done to be good parents to kids who never asked to be dis- placed. As they do their good works, most fosterers are dangerously unaware of the legal and financial risks they are taking when someone else’s child enters their home. Millions of dollars are paid out every year as a result of lawsuits against foster parents. These millions include defense costs and court-awarded settlements.

What are some of the financial and legal pitfalls that face our well-intentioned fosterers?

Allegations of physical or sexual abuse or both are on top of the list for financial risk. These allegations are usually followed by a civil suit filed by a biological parent of the accuser and demanding a large cash settlement. Although the vast majority of these suits are defended successfully, there is still the burden of defense costs.

As they do their good works, most fosterers are dangerously unaware of the legal and financial risks they are taking when someone else’s child enters their home.

The injury or death of a foster child while in care can also result in a civil suit. These suits allege negligent super- vision by the foster parent.
Property damage or injury caused by a foster child can result in a financial loss to foster parents. This event could be as minimal as a neighbor’s broken window or as serious as bodily injury to a neighbor’s child.
The issue that seems to be the hot button for foster parents is damage to their own property, done by a foster child. Although the damage done in any one incident is usually minimal, the wear and tear does add up. Many foster par- ents see this cost as their one and only financial risk associated with fostering.

The preceding possibilities are some of the more straightforward pitfalls faced by foster parents, but more seri- ous questions can arise: What if the foster child steals from me? What if my foster child sets fire to my house? What if he takes my car without my permission? These are all legitimate concerns.
Even though the immediate impact of any of these incidents can range from a few dollars to million-dollar court settlements, there are other lingering effects. The foster parent’s reputation and the reputation of the agency may be damaged. The agency may have a tougher time recruiting new foster parents because of negative press or experience a decline in charitable contributions.

What can we do to protect our foster parents from such hazards?

Looking at the fostering process through a risk-management prism can make all the difference. The following three areas can have a huge impact.

What processes can we improve?

Templates are available for every step in the prequalifying, licensing, placement, and follow-up processes. These resources are as basic as state guide- lines or as sophisticated as the resources available from an array of insurance company risk-management departments. Don’t reinvent the wheel if you don’t have to. The templates developed by these providers are well thought out, and many have been courtroom tested. A key element in your agency’s procedures is this: every chance you have to get someone to sign-off, do it. In layman’s terms, if someone is involved in a pro- cedure that requires disclosure of information, such as placement, make sure that you have dates and signatures showing that the procedure was carried out properly.

What training will help? We all know the value of up-to-date training. However, how many of us have considered offering training to our foster parents on such topics as “Defensive Foster Parenting” or “How does my auto and homeowner’s insurance play into my role as a Foster Parent”? Such training is available from various sources. Check with your agency’s insur- ance broker, because she or he may be your best resource for this kind of training.

What insurance is available for those hazards that can’t be completely eliminated? Unfortunately, as much as we would like to elim- inate all the uncertainties inherent in fostering, it can’t be done. Find an insurance professional who understands your world. He or she can help you eliminate coverage that is not necessary while making sure that you have all the gaps covered.

Let’s do what we can to help our foster parents retain the enthusiasm that can be so contagious. We can help them avoid financial and legal pit- falls. Look at fostering through a risk-manage- ment prism. Help foster parents continue “saving the world one child at a time.”

Presidential Proclamation – National Foster Care Month

Progress in America can be measured by the opportunities we pass on to our children. For nearly half a million youth in foster care across our country, the best path to success we can give them is the chance to experience a loving home where they can feel secure and thrive. During National Foster Care Month, we renew our commitment to ensuring a brighter future for foster youth, and we celebrate the selfless individuals who make a meaningful difference in their lives.

Young people in foster care are in the system through no fault of their own, and each of our Nation’s children deserves a stable home and a devoted family. Strong support structures provide children with the environment needed to learn, grow, and reach their greatest potential. Permanence is critical to the future success of foster youth and must be a key component of foster care initiatives.

My Administration is committed to achieving security for every child and supporting adolescents in foster care as they transition to adulthood. The Permanency Innovations Initiative, spearheaded by the Department of Health and Human Services, is providing support to public-private partnerships focused on decreasing the number of children in long-termfoster care. Over the next 5 years, this program will invest $100 million in new intervention strategies to help foster youth move into permanent homes, test new approaches to reducing time spent in foster care placements, and remove the most serious barriers to finding lasting, loving environments. Over 110,000 children in foster care today are waiting to be adopted. Across America, there are families who need these children as much as these children need families. I encourage those interested in adopting a child in need of a home to explore the life-changing resources available at www.AdoptUSKids.org.

We are also investing in the health and well-being of our young people in foster care. Through the American Recovery and Reinvestment Act, we have significantly increased funding for the Title IV-E adoption and foster care assistance program to provide safe and stable out-of-home care for children. As a result of the Healthy, Hunger-Free Kids Act I signed into law last year, all children enrolled in foster care automatically qualify for free meals in all Department of Agriculture child nutrition programs. Additionally, beginning in 2014, the Affordable Care Act will require States to extend Medicaid coverage up to age 26 for all youth who have aged out of the foster care system.

As a Nation, we all have a responsibility to remain persistent in the charge to provide the best care possible for children when they cannot remain in their own homes. During National Foster Care Month, we recognize the efforts of foster families, social workers, faith-based and community organizations, and others that are improving the lives of young people in foster care across our country, and I encourage all Americans to partake in efforts to serve these children in the year ahead.

NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 2011 as National Foster Care Month. I call upon all Americans to observe this month by taking an active role in activities across our country that recognize not only these cherished children and youth, but also the commitment of so many that touch their lives at a most challenging time.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of April, in the year of our Lord two thousand eleven, and of the Independence of the United States of America the two hundred and thirty-fifth.

BARACK OBAMA

As an insurance agent for more than 25 years, I first learned about the difficulties
foster parents have obtaining and collecting insurance through a friend who was a
foster parent. She became uneasy with the way her insurance carrier was treating the
Pennsylvania State Foster Parent Association and asked for my assistance. That was in
1982 and the need for adequate education and services pertaining to foster parent liability
issues is growing. I have been active in the insurance and liability side of fostering ever
since. I currently speak to various foster care organizations and insure more than 27,000
foster homes in the United States. I have been involved in the writing of insurance
policies, counseling with state insurance departments and consoling foster parents who
have received dreaded suit papers alleging abuse.

Today several forms of insurance are available for foster parents. There are state
level insurance funds and various forms of insurance provided at the agency level. Add
to these the role played by homeowner’s and auto insurance and you have a labyrinth
that can seem daunting to even the most insurance-savvy foster parent. Homeowner’s
policies help in some circumstances but don’t always cover rebuilding a home destroyed
by an arsonist foster child. Auto insurance is fairly simple. In order to be sure a foster
child driving your car is covered, call your agent. If a child is injured as a passenger, the
auto policy should respond, but check with your agent because state laws vary.
Insurance laws stipulate that you cannot be covered for the commission of a crime. A
bank robber can’t buy coverage that will protect him from lawsuits incurred as a result of
his felonious activities. What does this have to do with foster parenting? Physical and
sexual abuse are criminal acts, as are arson and theft. Therefore the foster parents who
find themselves the target of abuse allegations can be insured by defense-only coverage
from a civil suit but not from a criminal one.

As an example, we had a foster parent in a California jail who was convicted of
criminal abuse charges while an insurance company defended him from a civil suit on
the same charges. He was guilty of abusing a foster child, but the coverage dictated that
we defend him from the birth parent’s quest for monetary compensation. All coverages
that I am aware of for physical and sexual abuse allegations are defense only. Insurance
money availability in the past has made foster parents an easy target for those looking
to earn a fast buck at the expense of the innocent children and a good foster parents’
reputation.

Coverage for arson or accidental fire is a little dicey. It’s all about intent. A 6-year-
old who thinks it’s a good idea to build a campfire in his bedroom is not an arsonist so
the resulting damage is going to be covered under a foster parent property damage policy.
However, the 16-year-old who announces that he is going to burn the foster parent’s
house down could be a problem. When that situation occurred a few years ago, it made
matters worse from an insurance standpoint when the foster parents immediately called
local police and filed arson charges. The sad result was the foster parents had a severely
damaged house and no insurance to pay for it. This is the reason I stress the danger of
accepting “firebugs” into your home.

The theft issue is pretty clear cut. If a foster child is considered culpable for his
actions and steals the foster mom’s jewelry, there is no insurance coverage. Protect your
valuables.

While we are on the topic of defensive foster parenting, let me share a few points that
keep reinforcing themselves as I work on the front line of foster care. The importance of
a journal cannot be overstressed. If you jot down a few notes every day or every other
day it will go a long way in your defense should you find yourself on the wrong end of
abuse allegations. A simple notation of “the day was uneventful” can be sufficient to
establish a pattern of reporting happenings in the home. Be careful to keep your notes
unemotional in nature, as notes about your frustration with a child can be used against
you. A spiral bound journal is admissible as evidence in court.

Information is your best defense against future heartache. Although a well-intended
caseworker may show up on your doorstep at 6 p.m. on a Friday with a cute 7-year-old,
don’t take the child without sufficient information. The consequences of not accepting
the child may be loss of favor with the caseworker or the agency, and the child may
have to spend the weekend in a group facility. This may tear your heart out, however,
accepting a child into your home without proper information puts your family at risk.

I want to point out where the landmines are buried for foster parents looking to secure
themselves against liability issues. There is good coverage available for foster parents,
and coupled with defensive foster parenting, the journey can be made with relatively little
risk. For more information, contact us or call (800)-841-5161.