Childcare organisations already regarded as high underwriting risks face a rising premium burden under reforms to improve access to compensation for sexual abuse survivors, the Insurance Council of Australia (ICA) says.

Greater underwriting risk may lead to a rise in insurance costs or reluctance to offer cover, which may particularly affect smaller organisations, it says in a submission to a WA Department of Justice discussion paper.

The paper canvasses reforms including reversing the onus of proof for institutions, so liability would exist unless they show “reasonable steps” were taken to prevent abuse.

The changes would also introduce a non-delegable duty of care and could extend an institution’s liability beyond employees to people associated with the organisation.

WA is the latest state to consider legislative changes in response to recommendations made by the Royal Commission into Institutional Responses to Child Sexual Abuse.

ICA says liability underwriting for child sexual abuse in Australia is not a large or expanding market and not all insurers are prepared to offer cover.

“Those that do offer this type of insurance to institutions often do so very selectively. It is within this context that changes to liability settings should be carefully considered.”

ICA says it strongly supports measures that promote direct risk mitigation against the likelihood of abuse occurring, but warns smaller organisations, likely to be particularly exposed to difficulties gaining insurance, may need assistance.

“Programs that educate and provide support for smaller, less resourced organisations could be undertaken to help create safer environments for children that directly reduce risk,” it says.

Victoria and NSW have already reversed the onus of proof and made other changes, while the Queensland Government introduced a bill to Parliament last November.