Managing Risk
Good providers know that managing the risk of caring for traumatized children goes far beyond purchasing an insurance policy. The difficulty is in balancing all the responsibilities of caring for kids, dealing with employed and contract staff and foster parents, managing money, working with placing agencies, schools, neighbors, and the authorities, monitoring legislation and regs that can impact the processes and outcomes, as well as all the other aspects of the “business” of child welfare.
Because of our commitment to protect only child welfare organizations, we make it our business to understand the burdens you’re under and to make securing appropriate protection as painless as possible.
As a means to that end, we recommend the following:
Choose your insurance broker carefully. Your broker should be knowledgeable about your operations in order to adequately understand the coverages that are necessary to the protection of you, your organization, your staff, and your board. As the old saying goes, you don’t know what you don’t know. A broker chosen because he’s a nice guy who plays in your annual golf tournament could lead to disaster if he or she doesn’t also take the time to really understand whether or not your insurance policy forms will adequately respond to the types of lawsuits you may face.
Some additional considerations:
- We have a Broker Selection Guideline which is available by email. It will provide some basic guidelines for selecting a broker who is committed to being there for you when you need them most.
- Ask your insurance broker for written assurance that the policies you currently have are sufficient to protect you, your organization, your board, and your staff for defense and indemnity against the risks and realities of caring for the children in your placement. If there are limitations or exclusions, ask the broker to spell them out clearly so you’ll know where your organization is self-insuring. Bear in mind that every conceivable claim may not be insurable.
- If your broker is not comfortable with providing this information, considering hiring an independent insurance coverage consultant or a lawyer experienced in defending child welfare organizations to review your policies and advise of their concerns, suggestions, and/or recommendations.
- Ask your insurance broker if a replacement cost valuation has been done on your buildings within the past three years. Make sure you’re comfortable with the amount of coverage on your property as insufficient coverage can result in the insurance carrier paying only a percentage of a covered claim.
- Ask your broker to review the Child Welfare Organization Risk Assessment (click here for a copy) with you. Make sure you’re satisfied with all the questions regarding current coverage and areas of self insurance.
- If your broker has a risk management division or a risk management specialist, meet with that person and ask that they do a free evaluation of your locations and to provide you with a report of any safety recommendations or suggestions. (Verify before they do the evaluation that there will not be mandatory compliance on any suggestions or recommendations.)
- If it’s legal in your state and your insurance broker obtains motor vehicle reports on your employees every year, ask for copies for your files (if you’re not already on your state’s DMV PULL program).·
Regardless of how good the premium may be and how comprehensive the coverage form is, if the insurance company isn't around to pay a claim that may arise in the future, your organization will be forced to pay for defense and indemnification out of it's assets. Do your best to be confident that the insurance companies chosen to protect you and your organization are financially stable. (If you insure through Child Welfare Insurance Services, we do this for you.)
To check the financial stability of an insurance company, go to A.M. Best, an independent evaluator of insurance companies. (Type in your email address and a password and you'll be connected to their independent ratings of any insurance company in the US.) To put this information into perspective, click here for the up-to-date Best Rating Analysis definitions.
Join state and national associations and take advantage of shared knowledge.
Contact the local office of RIMS or other professional risk management organizations or associations in your area. You may find a risk management professional willing to work gratis to help you help the children in your care.
Trainings Available
Some of the many individual and group trainings and workshops available through Child Welfare Insurance Services are:
Preventing Employment Practice Claims, including hostile work environment, sexual harassment, and wrongful hiring, discipline, and termination.
Preventing Auto Accidents and Thefts Boundaries, including preventing staff-youth and youth-youth sexual relationships. This information includes twenty years of claims data from actual events.
Making Your Organization More Insurable Knowing the low- or no-cost steps to take that can save you literally thousands of dollars every year on your insurance.
Media Guidelines for when a tragedy occurs and before
Risky Business Mitigating the risks of caring for traumatized youth and their dysfunctional families before lawsuits are filed can save your license, reputation, ability to fund-raise, and save you thousands of dollars in insurance premiums now and for years into the future.
Preventing Staff Injuries Facilitating the largest workers’ compensation insurance group for child welfare organizations in the state for California for many years, allowed us to gather and analyze data which taught us which staff get injured and when. Knowing the months of the year and times of day that your staff are most likely to be injured, will allow you to staff and modify program accordingly. Minor, low- or no-cost adjustments can save you thousands of dollars in your workers’ compensation insurance costs, not to mention staff productivity and disruptions in relationships with kids.
Trainings range from 1 ½ hours to 8 hours and can be customized to address the audience, history of specific staff and child injuries, and other parameters agreed upon in advance.
Contact us for specific cost and time information about the areas of training best suited to help you best protect the kids in your care.