HARRISBURG – A measure to protect private children and youth social service agencies and residential treatment providers passed the PA Senate. House Bill 2214 would help essential service providers by making indemnification language in government contracts that currently shift all liability to third-party providers unenforceable. Bill sponsor, York County Rep. Kate Klunk said she’s heard from agencies who need more affordable operational insurance and her bill will help create a fairer and safer system for vulnerable children and families. Private provider agencies have seen increased insurance costs and decreased coverage due to indemnification clauses that require the service provider to take on all liability, regardless of whether the service provider or county agency is at fault. As a result, providers of behavioral health, drug, and alcohol services, foster care, adoption services, and residential treatment centers are finding it increasingly cost prohibitive, and at times impossible, to get affordable professional liability insurance. The bill now goes to the governor’s desk.
REP. KATE KLUNK