Majority Of California Private Foster Care Organizations Facing Loss Of Liability Insurance Due To New State Law

The majority of private foster family agencies (FFAs) in California face losing their liability insurance due to a new state law that went into effect on October 1, 2024. About 90% of FFAs in the state are currently insured by Nonprofits Insurance Alliance of California (NIAC), a group of non-profit insurers that provide liability and property insurance to other non-profit organizations. Major commercial insurers stopped insuring California FFAs in 2019 due to the high liability risk. A new California law, Assembly Bill (AB) 2496, The Foster Family Agency Protection Act, (signed on September 22, 2024), renders FFAs “uninsurable . . .