1. Liability Insurance Coverage

   The Division of Family and Children Services purchases self-insurance to cover certain civil liabilities of foster parents. The policy provides coverage only in respect to your activities in your actual roles as foster parents.

   1. The foster parent is covered in the event a foster child is injured and a claim or lawsuit is brought against the foster parent by the birth parent or child’s guardian. 
   2. The foster parent is covered for “incidental malpractice” for failure to provide necessary medical care, therapy, proper diet or other medical needs of the foster child.
   3. The foster parent is covered for personal injury claims such as libel, slander, false arrest. Wrongful eviction or entry and alienation of the affections of the foster child from his/her birth parents. 
   4. The foster parent is covered for injury or damage caused by a foster child to others for which the foster parent is held responsible. 
   5. The foster parent is covered in the event he breaches a contract (written or oral) entered into in conjunction with his/her activities as a foster parent.

2. Property Damage Insurance

   Foster Parent’s Property Insurance Coverage: 

   The Division of Family and Children Services also provides insurance to cover damage to the personal property of foster parents caused by the foster child in their care. It will cover the loss of property in excess of $100.00 to a maximum of $1,000.00 for each incident. However, as of July 1, 2003, there is a $100.00 deductible per occurrence for real or personal property owned by or in the care, custody, and control of the foster parent. The original bills for the repair/replacement of the property must be attached to the claim for insurance coverage.

3. Exclusions

   Some of the major exclusions, or situations not covered, under these policies are:

   1. Damage to a foster parent’s property caused by a foster child under the amount of $100.00 or over $1,000.00. 
   2. Bodily injury or property damage arising out of the business pursuits of any uninsured. 
   3. Bodily injury or property damage arising out of the operation, ownership, maintenance, use of entrustment to others of any vehicle, with or without the permission of any foster parent. Such vehicles include any automobile, motorcycle, midget automobile (kart, go-kart, ATV, etc.), snowmobile, aircraft, sailboat or other watercraft with more than 50 horsepower inboard or 25 horsepower outboard. 
   4. Liability assumed by the insured under any agreement, other than a written agreement relating directly to the car of a foster child or to the foster parent’s residence.
   5. Any obligation for which the insured would be covered by workmen’s compensation, unemployment compensation or disability benefits law or any similar law. 
   6. Liability resulting from any criminal or illegal act of any insured wherein he/she has been found guilty in a criminal prosecution or has entered a plea of guilty or nolo contendere to a criminal act.

   Since certain claims you may have are covered by a homeowner’s or automobile insurance policy, you must also report all claims to your homeowner’s or automobile insurance agent, if any. 

   The Division’s insurance policy is excess coverage over your personal liability insurance, homeowner’s insurance, excess liability insurance or similar insurance but will become the primary policy to the stated limits when you do not have liability coverage of your own. Your service worker will discuss specific incidents with you. 

   In situations similar to those above, the state’s liability insurance policy may cover certain expenses such as court costs, lawyer fees and other damages, which can be settled with monetary considerations.

4. Reporting Procedures

   You, the foster parent, must immediately notify the local Department of Family and Children Services of any incident, accident or situation likely to result in a lawsuit or claim against you. Your service worker will obtain from you all the necessary information and notify the State Office and the Department’s insurance claims office of the incident.

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