(a)      In this section, "foster parent" includes an individual who cares for a child on an emergency basis under a shelter care program.

      (b)      (1)      The Department shall provide liability insurance for foster parents who care for children under foster parent programs.

            (2)      Subject to a reasonable deductible limit, which the Department shall set, the liability insurance shall provide coverage for:

                  (i)      Bodily injury and property damage that a foster child causes to the person or property of a person other than a foster parent; and

                  (ii)      Actions against a foster parent by a natural parent for any accident to the foster child.

      (c)      (1)      Subject to the provisions of this section, the Secretary shall reimburse a foster parent for costs of bodily injury or property damage that the foster child causes to the foster parent and that insurance does not cover.

            (2)      Before reimbursement under this subsection, the Secretary shall be satisfied that the actions of the foster parent did not contribute substantially to the bodily injury or property damage sustained.

            (3)      Reimbursement under this subsection shall be made for all costs to a maximum amount of $5,000. However, all payments in excess of $2,000 require the approval of the Board of Public Works.