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Care, nurseries and childminders
Abuse cover is the part of a care or childcare provider’s liability insurance that responds when someone alleges abuse or neglect, which public liability often excludes or restricts. Abuse claims can arrive decades after the events, and the law on time limits for child sexual abuse claims is changing.
Part of: Care home insurance
In short
Care homes, home care agencies, nurseries and childminders can be held liable for abuse by staff even where the employer knew nothing about it, because the courts apply vicarious liability where the abuse is closely connected with the job. Insurers usually cover abuse under its own section with a separate limit, often aggregate and sometimes claims-made. CQC’s definition of abuse includes neglect and financial abuse, and Ofsted must be told of allegations within 14 days. The government says the Crime and Policing Act 2026 removes the three-year limitation period for child sexual abuse claims, so keep old policy records.
An organisation can be liable for abuse in two ways: directly, for its own failures in recruitment, supervision or responding to concerns, and vicariously, for what its staff did, even if it did not know.
The key case for care settings is Lister v Hesley Hall Ltd [2001] UKHL 22, decided by the House of Lords on 3 May 2001. A company ran a boarding house for boys with emotional and behavioural difficulties, and its warden sexually abused boys in his care between 1979 and 1982. The employer did not know. The House of Lords held the company vicariously liable because there was, in Lord Steyn’s words, “a very close connection between the torts of the warden and his employment”: he was employed to look after the boys, and the abuse happened on the employer’s premises while he was doing so.
Later cases have developed the test, and whether an organisation is liable depends on the facts. For insurers the point is simple: caring for vulnerable people creates the kind of close connection that makes these claims hard to defend.
For CQC-registered providers, regulation 13 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 defines abuse as any behaviour that is an offence under the Sexual Offences Act 2003, physical or psychological ill-treatment, theft or misuse of a service user’s money or property, and neglect. Providers must have systems to prevent abuse and to investigate any allegation immediately.
For early years providers, the EYFS framework for group and school-based providers requires a designated safeguarding lead (paragraph 3.4) and says Ofsted, or the childminder agency, must be notified of allegations of harm or abuse as soon as reasonably practicable and in any event within 14 days (paragraph 3.10). Ofsted’s incident reporting guidance applies the same 14-day limit to childminders, nannies and nurseries. See nursery insurance and childminder insurance for the childcare side.
Insurance definitions do not always match the regulators’. Check whether the policy’s definition of abuse includes neglect, psychological and financial abuse, or only physical and sexual abuse.
Public liability is built around accidental injury and damage. Abuse is a deliberate act by an individual, so insurers handle it separately. The table shows typical positions; every wording differs.
| Feature | Public liability (typical) | Abuse section (typical) |
|---|---|---|
| What triggers cover | Accidental injury or damage to property | An allegation of abuse as the policy defines it |
| Limit | Usually per occurrence | Often lower, and commonly an aggregate limit for the year |
| Basis of cover | Usually occurrence: the policy in force when the injury happened | Occurrence or claims-made, depending on the insurer |
| The alleged abuser | Not relevant | Usually excluded; the cover protects the organisation |
| Defence costs | Usually in addition to the limit | Check whether they are inside or outside the limit |
The difference between occurrence and claims-made matters more for abuse than almost any other risk, because claims are often made many years later. Our guide to claims-made and occurrence cover explains the mechanics, and public liability insurance covers the main section.
Personal injury claims in England and Wales normally have a three-year limitation period under the Limitation Act 1980, although courts already had a discretion to allow later claims. The government’s Crime and Policing Act 2026 factsheet says the Act removes the three-year limitation period for child sexual abuse personal injury claims in the civil courts of England and Wales, and that it will be for the defendant to establish that a fair trial is impossible. Check how and when the change applies as it is brought into force.
Our historic abuse scenario for charities shows how this plays out.
Financial abuse by staff can also be a crime and fidelity matter; see employee theft and fraud insurance. Tell your insurer as soon as an allegation arises, even before anyone claims. Most policies require prompt notification of circumstances, and late notice can prejudice cover.
The examples below are illustrative. They are not real claims or outcomes.
Apex arranges insurance for care homes, domiciliary care providers, nurseries and childminders, including the abuse section. A broker reads each enquiry and comes back with options; there is no fee for a quote, and cover is subject to the insurer’s acceptance and the policy terms. To quote, we need your business activities, turnover, location and claims history, plus the people you care for, staff numbers, your safeguarding and recruitment policies, any past allegations, and details of previous insurers and the basis of past abuse cover.
Often not, or only in a limited way. Many public liability policies for care and childcare exclude abuse and give it back under a separate section with its own limit and conditions. Some general business policies exclude abuse entirely. Check the definition of abuse, the limit, whether it is aggregate and whether the cover is occurrence or claims-made.
Yes. Under vicarious liability an employer can be liable for abuse by staff where it is closely connected with their job. In Lister v Hesley Hall the House of Lords held a company liable for abuse by a boarding house warden although it did not know. Whether liability applies always depends on the facts.
Personal injury claims normally have a three-year limitation period, but courts can allow later claims. The government says the Crime and Policing Act 2026 removes the three-year limit for child sexual abuse claims in England and Wales, placing the burden on defendants to show a fair trial is impossible. Check how and when it applies.
It depends on the wording. CQC’s definition of abuse includes neglect and theft or misuse of a person’s money, but insurance definitions vary. Some sections cover only physical and sexual abuse. Theft by staff may be better suited to employee fidelity cover, so check how the two policies fit together.
Usually, yes. Most liability policies require prompt notification of circumstances that may give rise to a claim, and an allegation reported to Ofsted, CQC or the police normally counts. Late notice can prejudice cover. Notifying the regulator does not notify your insurer, so do both.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
