Insurance Costs Threaten New York Foster Care
A nonprofit coalition warns that rising liability premiums could push New York's foster system toward the collapse California experienced.
Updated on Nov. 9, 2026 in Child Care
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Should New York increase state funding so foster care agencies can afford liability insurance?
The Council of Family and Child Caring Agencies released a report warning that the liability insurance market threatens New York's foster care system. Premiums for surveyed agencies rose 28 percent between 2024 and 2025.
Why it matters
Nonprofit agencies serve 75 percent of children in foster care statewide, so rising insurance costs directly affect placement capacity. Insurance costs are rising faster than government reimbursement rates, leaving providers with few alternatives.
Premiums for surveyed agencies rose 28 percent between 2024 and 2025, while two insurers cover nearly 70 percent of responding agencies. The report does not detail how many providers have already been affected or how future renewals will be priced.
The players
Council of Family and Child Caring Agencies
A coalition of nonprofit child welfare agencies that advocates for foster care providers and tracks sector conditions across New York.
The details
Two insurers dominate coverage for the agencies that responded to the survey, limiting alternatives when policies are not renewed or premiums increase. The council says New York could repeat California's collapse, where two dozen providers were forced to close after insurers pulled out.
Timeline
Premiums rose 28 percent between 2024 and 2025.
California's foster care system collapsed two years before this report.
The Council of Family and Child Caring Agencies released its report on November 9, 2026.
Roadmap
California's foster care system collapsed after insurers pulled out of the market two years ago, and two dozen providers closed. New York's premium increases follow the same pattern, raising the risk of a comparable breakdown.
Families relying on foster care services or considering becoming foster parents should watch for changes in local agency capacity. Residents can contact state legislators to ask how the state will address insurance costs for child welfare providers.
The takeaway
Insurance market stability is now a foster care capacity issue, not only a business concern. Monitoring premium renewals at local agencies offers an early signal of whether placement options are tightening.
Further reading
Explore more on child care policy and provider access in New York.
Live Poll
Should New York increase state funding so foster care agencies can afford liability insurance?
