NS insurers refuse to cover child welfare agencies

Community Action, June 16, 2003

HALIFAX -- Nova Scotia insurers are pulling out of insuring child welfare services and the provincial government has been forced to step in as insurer. One agency is facing 20 child abuse lawsuits, five child welfare agencies are not able to purchase liability insurance.

The provincial government is now providing coverage for the Nova Scotia Home for Coloured Children and four Children's Aid Societies after insurers cancelled or refused to renew their policies. Other agencies in the province face similar rejections as their current policies end.

The government became the insurer because the directors and staff would have been open to lawsuits. It is prepared to indemnify the agencies while it searches to find a permanent solution to the problem.

The 20 lawsuits arose out of the Nova Scotia Home for Coloured Children, a former orphanage that now provides services to at-risk teens. Former residents have alleged physical, mental and sexual abuse.

The Children's Aid Societies in Halifax, Colchester, Queens and Lunenburg are also experiencing difficulties in obtaining liability insurance.