Liability Insurance for Assisted Living Facilities

Assisted Living Facilities need comprehensive liability insurance because of the increasing costs of claims against them. According insurance carrier CNA’s latest report, the average cost to settle an assisted living facilities claim is $267,174.

The main allegations for claims were a failure to monitor residents, resulting in an increased severity of falls and pressure injuries.

There was also an increase in the severity of allegations of delays in seeking medical treatment, medication errors, resident abuse, elopements, improper care and failure to monitor.

Liability Insurance for Assisted Living Facilities can include:

Bodily Injury Coverage
Property Damage Coverage
Premises Liability including slips, trips, and falls
Completed Operations Coverage
Personal and Advertising Injury including Defamation (slander or libel)
Medical Payments Coverage
Legal Defense Costs
Legal defense expenses covered in addition to liability limits
Abuse and Molestation (SAM) Coverage (limited coverage)
Evacuation Expense Endorsement to relocate residents in a natural disaster or emergency

why is assisted living liability insurance essential?

Assisted living facilities face a number of challenges that necessitate the need for assisted-living facilities liability insurance. They are at risk of lawsuits in the following areas:

Regulatory Compliance: Navigating the maze of federal, state, and local regulations is crucial and compliance is an ongoing effort.
Staffing Challenges: Competition in the healthcare sector and a shortage of trained professionals make recruiting and retaining qualified staff increasingly difficult.
Financial Constraints: The significant expenses associated with malpractice claims can put financial strain on your budget.
Liability Risks: Assisted living facilities are prone to various liabilities, such as slips and falls, medical errors, and incidents of abuse and neglect.
Technology Integration: Implementing new technologies for record-keeping and medical monitoring, though costly, is essential.
Resident Mental Health: The growing number of residents with mental health conditions like dementia and Alzheimer’s requires specialized care and increased safety measures.
Rising Insurance Claims: Recent studies, such as CNA’s recent ‘Aging Services Claim Report,’ highlight a worrying trend in insurance claims. Assisted living facilities are facing higher payouts per claim compared to skilled nursing facilities, with the gap averaging almost $9,000 more per claim. This trend is driven by factors like higher-acuity residents and greater expectations from residents and their families.

How much does insurance for assisted living facilities cost?

Facility Size: Larger facilities with more residents usually pay more because of a higher risk exposure.
Location: Insurance costs can vary by region, influenced by local regulations and claim rates.
Services Offered: The range and nature of services provided can affect risk levels and insurance costs.
Claims History: A history of insurance claims can lead to higher premiums. Almost all claims are filed by relatives and not residents themselves, and most result from poor communication. Learn more about avoiding malpractice claims. Read: Risk Management in Nursing Homes and Assisted Living Facilities.
Coverage Limits and Deductibles: Higher coverage limits and lower deductibles typically increase insurance costs.
Safety and Risk Management Practices: Facilities with robust safety protocols may qualify for lower premiums.

Westwood Insurance Group partners with multiple insurance carriers to find you the best coverage at the best price. Get a Quick Quote today.

You may also want to consider a Single Parent Captive, a micro captive, or a protected cell captive. These options offer an alternative to traditional insurance which can be cheaper and more flexible.