It comes down to a problem with the insurance market. California districts are now asking for $3,000,000 to $6,000,000 in "Abuse and Molestation" insurance. The problem is that this insurance isn't usually sold to a single person. It is designed for large groups like summer camps or big tutoring centers. Most independent psychologists are finding it nearly impossible to get a policy that fits their small business but meets the district's "giant company" rules.

It is no longer just about being an expert. To be a "contractor" for a school, an evaluator must now:

• Pay $5,000 to $12,000 a year for this one specific insurance policy.

• Buy extra Commercial Auto Insurance (usually $1 Million).

• Attend special district training and orientations.

• Get fingerprinted and background-checked for every new school area.

For an expert who only does a few evaluations a year, the cost and the hours of paperwork are simply too high. Many are being forced to stop taking school cases entirely because it costs them more to do the work than they actually earn.

The "Two-Yes" Rule In a school district, the people who work with your child (Special Education) and the people who handle the money (Business Office) live in two different worlds.

• The Special Education Team looks at your child’s learning needs. When they say "Yes" to an IEE, they are agreeing that a second opinion is necessary. To a parent, this feels like the final step, but it is actually only the first half of the "Yes."

• The Business Office is the second half. They don't look at IEPs or test scores; they only look at contracts and insurance. Because an IEE is a service the district has to pay for, the Business Office must sign a contract before any work can start.

The Confusion: You might have a signed letter from the Special Education Director, but if the Business Office hasn't cleared the evaluator's insurance, the evaluator is legally not allowed to step foot on campus or start the testing.

An insurance company’s only job is to predict risk. Because these new safety laws are so new, the insurance companies have no data to look at. To protect themselves, they have priced insurance as if every independent evaluator is a "large company" like a summer camp or a giant ABA company - meaning the insurance costs more than what most IEE evaluators (who often have other arms of business and only do a few IEEs per year) make in total off IEEs.

In the past, districts could sometimes make exceptions. Now, most districts use automated software to check insurance. If an evaluator’s paperwork doesn't show the exact $3M/$6M limits, the computer gives them a "Red Light." Because this is a safety and legal rule, the Special Education department usually cannot bypass the system to let an evaluator in.

When you find an evaluator you like, ask them this: "Do you meet the $3M/$6M insurance rules for my district?" It is better to know the answer now than to wait weeks for a contract only to have the Business Office say no at the last minute.

NO. While it may feel like the Special Education department is creating these hurdles, the decision comes from the Business Office and the district’s insurance carrier. In fact, most SPED Directors are just as frustrated by this as parents are. They want the evaluation completed so they can move forward with your child’s IEP, but they are being blocked by administrative rules they do not control. description

The district is being forced by their insurance providers (like ASCIP or Keenan). Because of recent laws and large lawsuits in California, insurance companies are in "catastrophic risk" mode. They have told school districts: "If your contractors do not have $3M–$6M in SAM insurance, we will not cover you." If a district ignores this, they risk losing their own insurance coverage entirely. This leaves them with no choice but to enforce these high limits on every evaluator.