Newsletter

Temporary Housing and Support Services for Individuals Experiencing Homelessness

As California’s homeless crisis continues, local government agencies are responding to the need for temporary housing and support services. While these resources are best provided by public agencies and nonprofit organizations specializing in this area, local government agencies sometimes have to offer these services and assume the associated risk.

Suppose the agency intends to contract with another party to manage temporary housing and/or support services. In that case, a written agreement should be executed with indemnification language in favor of the agency. The following types and limits of insurance are recommended:

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• General liability $5M per occurrence / $6M general aggregate with the agency included as additional insured
• Sexual abuse and molestation liability $1M per occurrence / $2M aggregate
• Automobile liability $1M combined single limit
• Workers’ compensation (statutory limits) / employer’s liability $1M per accident or disease with subrogation waived in favor of the agency
• Professional liability $1M per claim / $2M aggregate

Keep in mind that certain property managers may refuse to indemnify the agency for general liability exposures and to include the agency as additional insured on their general liability coverage. This is a common practice in the commercial property management industry, where the building owner is generally expected to protect the property manager from liability. If your agency encounters this situation, please contact your regional risk manager for guidance.

If the agency intends to provide these services directly, the safety and security of staff and service recipients are paramount. A site security assessment should be conducted to identify scenarios that could lead to unauthorized access or potential violence. Ensure staff are aware of these exposures, develop a mitigation plan, and train staff on that plan. Clear rules should also be set and enforced to maintain order. In addition, staff working with individuals experiencing homelessness may face verbal or physical aggression. Thorough training on de-escalation techniques, crisis intervention, and personal safety protocols should be provided.

In addition, outbreaks of communicable diseases are more likely in congregate settings. Partner with public health agencies to implement sanitation protocols, provide hygiene essentials, and screen residents for potential illnesses.

If housing is leased, a close reading of the lease agreement is essential to understand your agency’s obligations clearly. This may include ensuring the building complies with California Health and Safety Code habitation requirements and other applicable regulations. The risk of theft, vandalism, and unauthorized access increases in temporary housing. Conduct regular inspections of the facility to prevent such occurrences or to address them as soon as possible. Finally, ensure the building meets accessibility standards for individuals with disabilities, including adequate signage and barrier-free entrances and exits.

Managing housing and support services for individuals experiencing homelessness is a complex endeavor. Assessing the risk and implementing the above recommendations will significantly contribute to the health and safety of staff and service recipients and reduce the likelihood of property and liability losses.

If you have any questions, please contact your regional risk manager.

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