The state pays about $250,000 a year for an insurance policy to cover state-licensed foster parents.
But critics say the policy provides little coverage.
If a foster child were to damage the rented home of his or her foster parents, for instance, the parents would have to bear the financial responsibility of fixing the home.
If the homeowner’s insurance carrier were to sue the foster parents, the policy would not cover their legal costs.
Steve Lane, a paralegal, former foster parent and voluntary guardian ad litem, said the state’s policy used to be more comprehensive, including covering foster children. Unlike with the current policy, the old one covered injury claims for foster children if the injuries were due to the negligence of someone else, Lane said.
"I find it troubling that the state spends over a quarter-million dollars each year on foster care insurance that provides such little coverage and in fact provides no coverage for harm to foster children," he added.
Officials with the Department of Human Services, which oversees the foster care system, say there is no state or federal requirement that foster parents be provided liability insurance. Hawaii is one of 23 states that provide insurance for foster families, according to the department.
It said property damage caused by a foster child, even while in state custody, would be the responsibility of his or her legal parents — up until the child is adopted.
Lane also criticized the state for having an insurance policy that would pay up to $100,000 in legal costs of a foster parent sued for allegedly harming his or her foster child but would not provide any coverage for the alleged victim.
Foster children receive medical insurance through Medicaid.
The issue of injury claims for foster children was raised recently when a Hawaii Supreme Court advisory committee rejected a proposed tort policy that Lane and attorney Bridget Morgan had submitted. The policy they co-authored was designed to simplify the process for getting legal representation for foster children injured due to someone else’s negligence.
Under the current system, getting a lawyer to pursue an injury claim on behalf of the child is extremely difficult and rarely occurs, according to supporters of the proposal.
But the panel unanimously opposed the proposal, partly because members believed the recommended process would not be the most timely or efficient way to bring such matters before the court, a court spokeswoman said.
