Insurance for assisted living facilities presents complex challenges for operators, who have to manage risks that extend beyond healthcare practice and include housing liabilities. No policy is a perfect match for every facility, which is why operators need to review multiple options and compare them to find the coverage that meets their specific needs, including the services they provide and the risks they are exposed to.
This comparison guide aims to help assisted living facility operators evaluate insurance plans to find the right policy types, coverage limits, and providers that fill their coverage gaps, protect their residents, and maintain their reputations in a risky industry.
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We’ll explain the steps facility owners should take to assess their risk profile and strategize their insurance protection for their residents, guests, employees, and property. We’ll also highlight additional coverage facility operators should consider when customizing their liability protection to meet their organization’s needs.
Step #1: Inquire About General Liability Coverage
General liability coverage is at the top of this to-do list for facility operators because it is the non-negotiable backbone of all assisted living insurance coverage. General liability covers several essential risk areas, including:
- Slip and fall accidents for visitors, family members, and residents
- On-site equipment damage or damaged/lost visitor property
- Legal defenses and settlements related to covered events
General liability covers bodily injury, personal injury, and property damage, which are core protections for facilities that allow visitors, employ workers, and house residents. Facility operators should inquire about general liability practices first when comparing providers.
Step #2: Assess Professional Liability Risk
Professional liability insurance is a significant investment for facility operators since assisted living facilities encounter claims of negligence or medical mistakes. When staff members fail to follow best care practices, the facility is liable. However, this is not the only reason to invest in professional liability coverage.
Even when staff members practice adequate care in accordance with industry standards, residents and family members can still sue the facility for claims of oversight, abuse, or neglect. Facilities commonly deal with claims involving improper medication dosing or timing, accusations of neglect or injury, and improperly followed medical care plans. Professional liability handles the costs of legal fees, judgments, and settlements related to allegations.
When comparing providers, operators should look for policies customized for the needs of senior care environments to make sure their liability coverage does not exclude healthcare and geriatric services, as many do.
Step #3: Confirm Property Insurance Coverage Types
Property insurance protects the facility, including its buildings, equipment, furniture, and fixtures. Common coverage types include protection against fire, vandalism, theft, and natural disasters. However, many policies exclude specific events. Facility operators should be careful when comparing providers to make sure the policy covers their needs.
For example, facilities in high-risk flood or hurricane zones should make sure they have additional riders for flood and wind damage, which standard policies typically do not cover. Specialized equipment, such as mobility scooters and other devices, should also be covered since many policies omit replacement costs for expensive, specialized assets.
Business interruption insurance is a related coverage that helps facilities recover the costs of temporary closures related to disasters, both caused and natural. Compare the fine print of each provider’s property insurance and ask about exclusions and additional riders to get a clearer idea of what full coverage will cost with each plan.
Step #4: Follow Workers’ Compensation Laws
Workers’ compensation coverage provides valuable protection for assisted living staff, who often perform physically demanding tasks, such as lifting residents, handling food, and cleaning messes. Workers’ compensation covers medical expenses, lost wages, and liability for injuries sustained on the job.
In most places, workers’ compensation is required. However, facility leaders should still seek discounts for employee safety training and assistance programs to reduce the cost of required coverage. When comparing workers’ compensation plans, facility leaders need to assess how well each provider understands the specific risks and safety requirements of assisted living facilities.
Step #5: Assess Auto Insurance Needs
Commercial auto insurance policies are significant for assisted living facilities even if the facility itself does not own or employ vehicles. Many facilities use owned or employee-owned vehicles for various duties, including transporting supplies or residents. This situation can lead to significant liabilities that need to be covered by insurance, and individual car insurance policies often exclude for-profit activities from their policy coverage.
Operators need to make sure medical transport exposures and passenger transportation are clearly delineated in the insurer’s coverage. Even then, some policies specifically exclude mobility-impaired passengers without an additional endorsement.
Customize Coverage to Keep Residents and Employees Safe from Liability
Assisted living facilities contend with many unpredictable factors, which is why facility operators should strategically compare each provider’s offerings with a clear understanding of the facility’s needs. Proper coverage is customized for the facility’s treatment offerings, employment model, location, and more to close any coverage gaps.
At Pro Insurance Group, our experienced local team helps assisted living facilities match their exact personal and industry needs to multi-policy insurance coverage. Our job is to consider every possibility so that operators can feel secure in their plans.
Contact us today to learn more about how to compare commercial insurance coverage options and customize protection for your facility.