Background

Government-funded NGOs providing out-of-home care (OOHC) and youth homelessness services are having difficulty obtaining insurance for physical and sexual abuse (PSA) claims.

Service providers have raised serious concerns about exposure to uninsured abuse claims and some have advised they are considering exiting service provision. The exit of providers from the market will have a significant impact on essential service delivery for vulnerable children and young people, and will likely lead to market failure. This is a national issue impacting providers across the country.

The purpose of the IJWG is to identify feasible long-term options for a response to this issue. Its establishment was endorsed by Community Services Ministers (CSM) in August 2021. CSM is also the reporting body for the IJWG.

The IJWG is aware this issue may also impact some National Disability Insurance Scheme (NDIS) funded providers of accommodation outside the family home for children and young people and will consider the needs of these providers in the design of potential long-term solutions.