Amy Molloy explains why more than 1,300 childcare providers nationwide are in crisis over insurance – and what happens next.

Why are more than 1,300 childcare providers in crisis over insurance?

Ironshore Europe, a major UK underwriter, recently withdrew from the Irish market. Last-ditch attempts by broker Padraic Smith & Co to secure an alternative insurer failed, meaning there is now only one insurance provider willing to cover those in the childcare sector.

As a result, crèches have seen premiums soar and they are struggling to cover the cost.

Why are insurers not willing to cover childcare providers here?

Ironshore quit Ireland in the wake of the Hyde & Seek controversy.

Please log in or register with Independent.ie for free access to this article.

Log In

New to Independent.ie? Create an account

The Government has also introduced more onerous regulations for childcare providers, which means some are struggling to get insurance.

Tusla recently said one-in-four crèches are ‘high risk’ – does that mean children are at risk in these crèches?

Not necessarily. A high-risk rating may just mean that a crèche hasn’t been inspected recently.

Children’s Minister Katherine Zappone said some crèches may be operating an excellent service, but may have been classified as high risk simply because they haven’t been inspected by Tusla.

How long has the Government been aware of issues with insurance in childcare?

Ms Zappone said the issue has only come into “strong focus in recent weeks”.

However, insurance costs have been a huge problem for many sectors in Ireland in recent years.

It was reported in early December by the ‘Sunday Business Post’ that Ironshore was withdrawing from the market.

Earlier this year, many play centres were on the brink of closure as they couldn’t obtain insurance, but a UK provider stepped in.

Will the one-off payment prevent crèches from closing?

While the payment will offer temporary relief to those with smaller premiums, for some, it won’t be enough.

Paula Donohoe, who operates the Clever Clogs crèche in Co Cavan, told the Irish Independent how her premium for 2019 was €3,400, but her insurance quote for 2020 was €9,557.

Some crèche owners who have a personal injury claim pending against the company have been unable to get any quote.

Why are some crèches being offered a 30pc discount on insurance?

The Joint Committee on Children and Youth Affairs heard how crèches who become a member of childcare organisation Early Childhood Ireland (ECI) will receive a 30pc discount on insurance from broker Arachas.

So why don’t all childcare providers become a member?

Because being a member of ECI doesn’t lower their risk rating, so they have queried why members are being given lower premiums. Also, some crèche owners who run two buildings under the one company name and one Tusla registration have told how they are being charged two membership fees to join the ECI.

Source: Read Full Article