AEI Releases Foster Care Liability Insurance Recommendations

On March 19, the American Enterprise Institute released a new report addressing the burgeoning liability insurance crisis for nonprofits working with foster care populations. The recommendations include: (1) establishing a federal fund to compensate victims for injuries; (2) establishing a federal risk pool for insurance claims; (3) limiting liability for organizations that comply with federal laws and tying federal funding to limits on jury awards; (4) establishing a federal “safe provider” certification that provides discounts on insurance; and (5) encouraging states to subsidize insurance costs for private providers.