SPRINGFIELD – In order to protect community based foster care agencies from the increasing costs and the decreasing availability of liability insurance, State Senator Laura Fine passed legislation to analyze the current foster care liability insurance landscape in Illinois.

“Foster care and adoption services must maintain liability coverage to operate in the state,” said Fine (D-Glenview). “Without sustainable insurance options, these foster agencies are at risk of shutting down altogether.”

 Agencies are required to carry liability insurance to protect the 13,000 children in their care.  Many carriers are no longer offering this line of insurance, and only two carriers offer liability insurance for foster care providers in the state. This has resulted in higher costs and limited coverage.

House Bill 762 requires the Department of Insurance to conduct an inquiry into liability insurance practices for foster care services. By April 1, 2026, the department must provide stakeholders, the General Assembly and the governor’s office with a finalized survey of their data.

This survey allows the department to analyze information from insurance carriers inside and outside of the state to obtain information about issues contributing to the problem, including factors like rising settlements and a changing insurance market.

“This survey will help clarify why foster agencies are being priced out of the market and help us formulate solutions to curb this crisis,” said Fine. “We need to do all we can to protect our youth in care.”

House Bill 762 passed the Senate on Thursday and heads to the governor’s desk.