Texas Childcare Insurance Market Collapses, Driving Up Costs
What happened
The insurance market for childcare centers in Texas is collapsing, leading to a mass exodus of carriers from the industry. This crisis is linked to Texas extending the window for childhood abuse lawsuits from 15 years to 30 years in 2019. As a result, premiums for centers are tripling, and some centers are closing or cutting services.
Why it matters
The market collapse means that centers are passing significantly higher costs onto consumers. Only two traditional carriers currently remain in Texas willing to write childcare liability policies, down from dozens of options. This statewide issue is driving up the cost of childcare for families across the state.
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TexasSpeculative
Childcare centers in Texas might face increased operational costs due to the collapse of the insurance market.