Government effort to tackle insurance costs welcomed by children’s care homes

The children’s care home sector has welcomed government
measures to tackle the recent hikes in employers’ liability
compulsory insurance (ELCI), writes Derren

The Department for Work and Pensions final report on its review
of ELCI said the government wants insurance premiums to
“better reflect the health and safety performance of
firms”. It will also look at whether fixed fee schemes could
be a possibility.

It builds on a recommendation from an earlier phase of the
review for insurers and brokers to give longer renewal periods
– the length of time insurers give quotes for renewing
premiums before cover runs out.

There has been a reduction in the number of insurers prepared to
underwrite cover for children’s homes because of abuse
claims, which have seen premiums double and in some cases triple
over the past few years.

A spokesperson for the Association of Independent Child Care
Providers said anything that stabilised insurance fees would be

“This is a vicious circle: we provide services to public
bodies and have to put our fees up to councils and the public purse
has to pick this up eventually.”

Review of ELCI final report

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