Care homes offer an invaluable service within the community, looking after the needs of the elderly, terminally ill, and vulnerable. These vital establishments have ridden the wave of the COVID-19 pandemic and are now faced with a challenging insurance landscape. At Park Insurance, we work with specialists in the field to navigate you through these complexities. We can create a nursing home insurance package that allows you to offer the highest standard of care, safe in the knowledge that you’re covered for every eventuality in this high-risk sector.
What is care home insurance?
Care home insurance is a specialist policy for facilities and businesses offering care to those with enhanced physical, medical, or mental health needs. There are a range of care services that can be covered by this type of insurance, including:
- Residential care homes
- Dementia care facilities
- Daycare services
- Hospices
- Care homes for individuals with additional needs
- Supported living facilities
Because a care home looks after society’s most vulnerable, there are a range of risks associated with the services provided. Insurance for nursing home care takes into consideration all the leading risks, offering robust cover to safeguard the owner, the facility, its residents, and its staff.
Why does my facility need care home insurance?
The leading governing bodies in your industry require you to hold valid nursing home insurance. Though not all coverage within a policy is compulsory by law, it would be financially reckless to run a care facility uninsured, and without accreditation by a respected care authority, your business would struggle.
There are a range of scenarios that put a care home at risk of legal claims. A resident or visiting third party could trip on a cable or loose paving, leading to a personal injury claim. A resident or visitor could claim a staff member damaged a valuable item of personal property, seeking compensation.
A resident could claim that a medicine you administered caused them harm or accuse the facility of medical malpractice, leading to lengthy and costly litigation.
As an employer, you are also vulnerable to claims made by staff members, and being a physically demanding environment, you need to be prepared for claims for injury and illness.
What cover do I need?
Care home insurance is a collection of covers designed to protect your care business from the most common risks. Typically, the policy will include:
- Employer’s liability – By law, you should hold at least £5 million of cover if you hire staff. This safeguards your business should an employee claim they became injured or ill due to their employment.
- Public liability – No matter how well-maintained your facility or highly trained your staff, accidents can happen in this setting. Public liability protects you against third-party claims for injury and personal property damage.
- Professional indemnity – Claims of negligence can weigh heavy on the owner of a care home. Professional indemnity cover is used if a resident or their family claims there was poor care or service.
- Medical cover – This important cover deals with the risks associated with administering medication and treatments, and the physical act of caring for residents. Claims in this field can be high-value and it’s therefore essential to set the level of cover accordingly.
- Abuse and molestation – If a staff member is accused of abuse, this cover is used to defend the claim and to deal with any resulting compensation costs.
- Building and contents – Fire, flood, and storm damage could leave your building uninhabitable, resulting in a great deal of worry. Buildings cover ensures you can afford repairs or a rebuild should the worst happen. Contents cover protects the equipment and furnishings within the care home, many of which are modified to assist the residents. You can also take out cover for the residents’ personal belongings.
The following aren’t always covered as standard. Therefore, you may also like to add:
– cyber liability,
– personal accident,
– legal expenses,
– management liability,
– engineering inspection,
– breakdown, goods in transit, and motor insurance.
Can I get cover for domiciliary care?
If you provide home care for the vulnerable, you should advise your insurer so they can curate your elder care insurance accordingly. Many of the same risks are faced when caring for someone within their home, but if this is the only service you provide, you may not need all the same cover as standard care home insurance.
The importance of medical malpractice cover
Care homes may handle nearly all aspects of a resident’s medical care; sometimes, these needs are complex. Care staff will create and implement the requisite care plans, administer medication and certain treatments, monitor health, undertake the resident’s personal care, and manage their medical appointments, all within a safe and hygienic environment. If issues arise with any of these stages, leading to harm, the facility may face a costly claim and incur reputational damage.
Medical malpractice cover is used when claims are made against you for medical malpractice or clinical negligence that unintentionally led to illness, injury, or the death of someone under the facility’s care.
A related cover, treatment risk, deals specifically with adverse reactions or injuries caused by a medicine or treatment administered at the care home (or at someone’s home during domiciliary care).
How much does nursing home insurance cost?
Several factors will be considered when calculating your nursing home insurance premium. You may wish to include numerous care homes under one policy – often a more cost-effective route. The number of staff and residents, the size of the facility, and the level of care you administer will also influence the premium. Dealing with complex health needs will be deemed higher risk than general elderly care, for example.
The care industry is deeply rewarding, but the challenges and regulations faced by care home owners can be complicated and prone to change. With over 30 years of experience tailoring specialist policies, Park Insurance understands the industry’s unique needs. Call our insurance experts today to see how Park Insurance can support your business.