SPRINGFIELD — Community-based foster care agencies could soon have protection from increased costs and lack of liability insurance options, thanks to State Senator Cristina Castro’s support for House Bill 762.

“Insurance coverage has been a lasting issue for foster agencies to overcome,” said Castro (D-Elgin). “Without legislative action, foster care and adoption services could have been forced to close down.”

Foster care agencies are required to carry liability insurance to protect the thousands of 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 Illinois. This has resulted in higher costs and limited coverage.

To address this issue, Castro signed on to House Bill 762, which would require 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 data will help paint a better picture of the landscape so the state can formulate strategies to prevent foster care providers from being priced out of the market,” said Castro. “Children in the foster care system shouldn’t shoulder this burden.”

House Bill 762 passed the Senate on Thursday, Oct. 30.