Starting a care leavers' service is a rewarding challenge. You're supporting young people aged 16 to 18 at a crucial stage in their lives, helping them move toward independence while providing a safe, stable environment. With the Supported Accommodation (England) Regulations 2023 now in effect, registration with Ofsted is mandatory for providers. This has raised the bar for governance, safeguarding, and accountability, and a robust insurance policy is a key part of meeting those new standards.
This guide explains what you need to know about buying insurance for your business, helping you protect your service, your staff, and the young people you support.
1. Why Insurance Is Essential for Supported Accommodation
Running a supported accommodation service comes with a unique set of risks. The right insurance is more than just a financial safety net; it provides commissioners, Ofsted, and placing authorities with confidence that your business is prepared to manage and recover from serious incidents without compromising the safety of the young people in your care.
Common risks in this sector include:
- Safeguarding incidents: Allegations against staff, volunteers, or other residents.
- Property damage: Fire, flood, or vandalism affecting your premises.
- Staff-related claims: Injuries, negligence, or unsafe practices.
- Professional advice risks: Harm or loss resulting from a support plan, life skills coaching, or referral.
- Reputational damage: Negative media coverage following an incident.
2. Core Insurance Covers Every Provider Needs
Consider these essential policies to protect your business.
- Employers' Liability: A legal requirement if you have staff. This covers claims from employees, agency workers, or volunteers who are injured or become ill because of their work.
- Public Liability: Protects against claims from third parties, including service users, for injury or property damage caused by your business activities. This often includes medical malpractice or treatment cover.
- Professional Indemnity: Protects against claims for financial loss resulting from professional advice or services—for example, if a support plan or referral leads to harm.
- Abuse & Molestation Cover: Essential in supported accommodation. This covers legal defence costs and damages related to allegations of abuse, subject to strict policy conditions.
- Management Liability (Directors & Officers): Protects owners, directors, and managers from personal liability arising from decisions made while running the business.
- Business Interruption: Covers lost income and extra expenses if your premises are unusable after an insured event. Some policies may extend to "non-damage" triggers like an infectious disease outbreak.
- Property & Contents: Covers the building (if you own it), fixtures, fittings, and contents. If you rent, it can also cover tenants' improvements.
3. Policy Wording Red Flags
When reviewing an insurance policy, watch out for these common issues:
- Abuse exclusions or low sub-limits: Some policies may completely exclude abuse or set a limit so low it won't cover basic legal costs.
- No cover for volunteers or agency staff: If you use non-payrolled workers, double-check that they are included in your policy.
- Exclusions for self-harm incidents: This is a high-risk area for 16–17-year-old placements, so ensure your policy provides adequate cover.
- "Conditions precedent" clauses: These can void your cover if you fail to meet specific requirements, such as safeguarding or training standards, as outlined in the policy.
4. Choosing the Right Insurance Broker
An experienced care sector insurance broker can be a valuable partner. They should be able to:
- Understand Ofsted's inspection framework and how insurance fits with safeguarding and governance.
- Access specialist insurers who have experience with supported accommodation businesses.
- Provide risk management advice, including guidance on HR and health & safety.
- Help prepare insurance documentation for tenders, placement agreements, and Ofsted inspections.
At Quality Care Group, we specialise exclusively in care sector insurance. We work with multiple insurers to find the right balance of cover, compliance, and cost for your business.
5. Cost vs. Value
The cheapest policy may not meet commissioner requirements or provide adequate protection in the event of a serious claim. It's crucial to compare cover limits, exclusions, and conditions, not just the premium.
Premiums are influenced by several factors:
- The location and number of your properties.
- The number of placements you have.
- The experience of your management team.
- Your claims history.
- The risk management measures you have in place.
6. Getting Ready for an Ofsted Inspection
During an inspection, Ofsted will expect to see:
- Evidence of insurance that meets regulatory and contractual requirements.
- Clear safeguarding policies that are aligned with your insurance coverage.
- Incident and complaint logs, including evidence that you have notified your insurer where relevant.
Having robust coverage and understanding how it links to your internal policies and procedures can significantly strengthen your inspection rating and build commissioner confidence.
7. Insurance Readiness Checklist
Before you request quotes, make sure you can answer the following questions:
- Do you have up-to-date safeguarding and recruitment policies?
- Do you have a robust training plan in place for staff?
- Do you have the right infrastructure in place to stay up to date with HR and Health and Safety changes?
- Is your business registered with Ofsted (or in the process)?
- Do you have an asset register and an up-to-date valuation of your contents?
Quality Care Group can help you prepare by reviewing your current cover, identifying any risks or gaps, and providing tailored quotes from leading specialist insurers.
Complete this form to arrange a free insurance review for your care leavers' business.
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