Insurance Issues for Senior Care Facilities
As 74 million Baby Boomers are aging, there is more demand for senior living facilities while at the same time a shortage of skilled workers caring for the seniors. The surge in claims and lawsuits against the facilities has caused some insurance companies to exit this market, which drives the rates higher and higher. For senior care facilities to get proper insurance, they need skilled and experienced commercial property insurance brokers, such as the Rick Callaway Team (https://hosprop.com/), who are dedicated to protect senior care, skilled nursing, assisted living and dementia care facilities as well as home health care providers.
Aging Baby Boomers and senior facilities are both increasing
According to U.S. Centers for Disease Control and Prevention, between 2010 and 2016, the number of seniors living in residential care facilities increased more than 10 percent. The National Investment Center for Seniors Housing & Care, which collects data for the 99 largest U.S. metro areas, stated in its report that the number of rooms in senior living facilities have increased by a fifth since 2013.
Insurance rate hikes
The reality is that seniors often live far away from their adult children. As seniors’ life expectancy is getting longer, they tend to move into senior care facilities later in their lives when they are more frail and prone to falling and resulting injuries. Fall-related injuries account for almost half of all assisted living claims.
As costly settlements, payouts and lawsuit claims spike, and there are more and more multi-million dollars excess claims — liability claims above and beyond a provider’s main liability policy, – about 10 insurance carriers have left this industry in recent years.
Fewer insurers in supply while there is an increased demand for insurance protection makes the rate hikes go even higher.
“Some senior living facilities could see insurance rate hikes in 2019 as high as 30 percent,” according to an article in the Insurance Journal in January, 2019.
Smaller facilities usually bear the brunt of higher rates and deductibles because they often cannot compete with larger facilities for implementing comprehensive incident-preventive programs.
We go the extra mile to help with risk management
Facilities: Brokers on our Rick Callaway Team visit facilities and check on evacuation procedures, building maintenance, earthquake and fire preparedness, and all other relevant elements to better manage the risk of senior living communities such as senior care centers, skilled nursing, assisted living and dementia care facilities, as well as home health care providers.
Sexual abuse of seniors: Seniors at nursing homes are among the most vulnerable who depend on others for almost everything. Those with dementia are unable to comprehend or communicate. Often, the abused victims cannot speak for themselves after they were violated by other seniors at the same facility, or by care workers, or outside visitors.
Employees need to be trained to watch out for indications of assault and increase awareness. Senior facilities can set preventive procedures to supervise 24/7 all workers and residents, with security cameras if appropriate, to root out dangers. Employee background screening needs to be thorough and comprehensive. Nursing homes need customized liability insurance to protect themselves against financial costs of liability claims and investigations.
Protect senior care providers with general and professional liabilities insurance
Senior facilities can prevent incidents by properly training workers to learn how to more safely lift residents, and have all exit doors well guarded to prevent Alzaimer residents wandering outside, etc. We work with leadership to help identify and manage risks. Facility operators need to provide all available data and be transparent with liability incidents for accurate risk profiles and underwriting.
Having adequate primary medical professional and general liability insurance coverage that also includes a range of additional specific features such as sexual abuse liability will help leaders at senior care institutions protect senior residents, the nursing homes and care workers.
No under-coverage, no overpricing in protecting your business and properties
The Rick Callaway Team are known as the Extra Milers in protecting your business, employers, employees, properties and assets and vicariously those you serve as well. We leave no stone unturned to get you the best deal. No under-coverage. No overpricing. Please call us for a free consultation: 925 788 5558 or email us at: rcallaway@pdins.com.