Childcare providers have been warned their insurance will not cover them for COVID-19 claims if they take part in the new Government scheme for frontline workers.

The long-promised scheme, announced yesterday, aims to provide childcare in the home for 5,000 essential workers.

Families that take advantage of the scheme were to be offered 45 hours of childcare per week, for a contribution of €90.

Childcare workers were to be offered €15 per hour.

This afternoon however, insurance broker Arachas wrote to its customers warning that a COVID-19 exclusion will be added to their cover if they take part.

It said Allianz Insurance had informed it that the exclusion was due to the “material change in risk in terms of the heightened exposure to COVID-19 claims” for workers that take part.

It said insurance providers have “consistently” warned the Government that they believe “there is an onus on the State to provide a State indemnity in respect of this exposure.”

Without the indemnity, the insurer will not provide cover for any claim relating to the virus.

Social Democrats Jennifer Whitmore, Cian O Callaghan, Catherine Murphy, Roisin Shortall, Gary Gannon and Holly Cairns outside the gates of Leinster House, 12-02-2020. Image: Leah Farrell/RollingNews

Social Democrats TD Jennifer Whitmore is calling on the Government to find a solution as soon as possible:

“It obviously is unworkable,” she said. “If a childcare provider is not covered by insurance, they will not be able to provide the service so it is really important that the Government sits down as a matter of urgency and actually talks to the insurance companies and to the stakeholders to see what can be done.

“This childcare scheme, we have been waiting a while for this to happen, it has to get up and running as quickly as possible there can’t be any further delays with it.”

The scheme, announced yesterday aims to provide childcare to the front-line from May 18th.

A full list of eligible workers is to be published today and expected to include nursing home staff and staff from Section 38 and 39 organisations as well as healthcare workers.

Trade union Fórsa last night warned that it had yet to receive any information about the plans “despite repeatedly seeking a solution to the issue of childcare provision for essential health staff since schools and crèches were closed.”

It noted that the 5,000 workers the scheme will be open to falls short of the HSE assessment that 7,000 of its staff needed immediate support.