Childcare providers have been told that they will not be covered for Covid-19 related insurance claims if they participate in the State's proposed scheme to deliver home-based childcare for frontline healthcare workers.
It is estimated up to 7,000 healthcare workers have been unable to get to work due to childcare problems.
The Government scheme would see staff of childcare providers volunteering to deliver childcare in the homes of such frontline health employees.
In a letter sent this morning, broker Arachas Insurance, which advises the childcare providers' group Seas Suas, said it engaged with the Government and recommended that it indemnify providers and workers volunteering to provide care to support healthcare workers.
"Unfortunately, we are advised that the Government is not in a position to provide a State indemnity for this," it states.
Arachas also indicates the body's childcare insurance provider Allianz has been contacted to clarify policy cover in relation to anyone volunteering to take part in the Government initiative.
Arachas states that Allianz has confirmed that all covers under the existing policy will continue to apply without additional charge.
However, it goes on to report Allianz as saying: "... as there is a material change in risk in terms of the heightened exposure to Covid-19 claims, if you participate in the proposed outreach childcare scheme they will have no option but to apply a Covid-19 exclusion arising out of and in connection with this new activity".
In addition, Arachas emphasises: "It is our duty as your insurance advisor to highlight to you that under the current framework outlined by your Insurer, Allianz, and by the Government departments, that you will not have insurance cover for any claim relating to Covid-19."
Arachas said that as this is a Government-led initiative in response to a national crisis, both it and Allianz have consistently expressed their views that there is an onus on the State to provide a State indemnity in respect of this exposure.
Allianz and the relevant Government departments have been approached for comment.
In a statement, a spokesperson for the Department of Children and Youth Affairs said childcare providers are private sector operators, 75% of which are private companies or sole traders, with 25% being community based services.
The department funds childcare delivery through these providers, but the providers and their staff are not public sector staff.
Insurance for childcare providers is provided by a number of commercial underwriters and brokers.
The spokesperson added: "Allianz, the largest underwriter in the sector, is supporting the outreach childcare scheme by agreeing to provide insurance policy amendments to its clients, which will enable them and their staff to take part in the outreach scheme. The department is grateful that Allianz has taken this approach.
"With regard to Allianz's decision not to provide coverage for Covid-19 related claims, this is a commercial matter for them as an underwriter. The department understands that the insurability of Covid-19 related claims is an issue which has been raised in a number of sectors."
The spokesperson said childcare providers should "contact their insurance broker if they wish to apply to the department to deliver outreach childcare under the scheme."
SIPTU health division organiser Paul Bell said that with a scheme like this, the devil was in the detail and insurance was a very big detail.
He said he would have assumed that before the scheme was formally announced, due diligence would have clarified these issues, particularly given that unions had been clamouring for childcare assistance for health workers for over eight weeks.
Fórsa said that it was not involved in what was essentially a "wrangle" between childcare providers and insurance companies.
National secretary Eamon Donnelly said the union had proposed two solutions to the childcare dilemma - the first being the direct provision of childcare.
He said that if this could not be delivered, the alternative was to provide financial support for workers forced to make alternative arrangements while schools and crèches are closed.
Childcare practitioners to undergo new Garda vetting
Childcare practitioners who volunteer to deliver childcare in the homes of essential healthcare workers will have to undergo a new Garda vetting process.
Responding to a query from RTÉ News, a spokesperson for the Department of Children and Youth Affairs said that it was an important principle of the Temporary Childcare Scheme for Essential Health Workers that all childcare practitioners must be vetted.
However, the existing Garda vetting for childcare practitioners is based on "centre-based" provision of childcare, and it had not been envisaged that they would be working in children's homes.
As a result, new vetting is required for the outreach service in the homes of essential health workers.
The spokesperson said the department has been liaising with the Garda National Vetting Bureau, and with Early Childhood Ireland and Barnardos (though whom Garda vetting applications for childcare practitioners are processed) to expedite the applications.
They said that given the current processing time for applications, it is not anticipated that this will significantly impact on the roll-out of the scheme.
