Social service providers across the United States are facing growing challenges when it comes to liability insurance. These organizations serve some of the most vulnerable groups, from youth in residential care to individuals with developmental disabilities. But a mix of factors like staffing shortages, increased demand, and rising claims is making it tough for them to secure adequate coverage.
Joe Carlson, senior vice president at Amwins Brokerage, explains that these groups have always dealt with tricky risks. But now, the situation is getting harder. More people need help than ever before, and the number of claims is rising in both frequency and size. This puts extra pressure on insurers, many of whom have pulled back or left the market.
One big reason is the way lawsuits are changing. Some states have extended the time victims can bring abuse claims, sometimes decades after the fact. These “reviver statutes” have resulted in large payouts from policies taken out years ago. On top of that, generous jury awards in certain areas have driven up costs even more.
For insurance agents working with social service providers, certain steps can improve the chances of getting coverage. Insurers want proof that organizations do thorough background checks, especially on staff and volunteers. They also look for good supervision, risk management plans, and clear incident reporting. How a provider reacts to problems matters too—trying to hide issues can be a major red flag.
Even groups with a history of claims can still find policies, but it often takes some creativity. This might mean reworking the terms, adjusting limits, or accepting higher deductibles to make a program affordable. Carlson advises agents to review options every year, as new carriers and products occasionally enter this tough market.
Amwins says the key to securing good coverage lies in understanding this specialized field and having strong relationships with carriers. Chasing the cheapest policy can be risky—some low-cost options come with big gaps in coverage that could leave organizations exposed. Detailed and accurate submissions also help present the best case to insurers.
Despite the challenges, there is still a way for social service providers to get the protection they need. With the right support and approach, they can find insurance that fits their unique risks and helps keep their important work going.