As a care home owner or manager you will offer a variety of services to meet the needs of your residents. Typically the care you provide is likely to vary with anything from basic care and accommodation through to respite, end-of-life and specialist care for dementia patients.
Providing the very best care for your residents will be at the heart of everything you do, but the care you deliver is not without risk and therefore having the right insurance in place is something that should be high on your list of priorities.
Not only does your insurance need to be tailored to protect the care services you provide, but you also need to consider the regulatory bodies you adhere to, protection for your staff, as well as covering the premises and its contents.
Here are some covers you must consider.
The Care Quality Commission (CQC) states that all care and nursing homes require insurance, and without it they are unable to operate. The mandatory insurance requirements from the CQC are Public and Employers’ Liability cover. Any additional covers will depend on the type of care facility you own.
Public Liability Insurance will cover the cost of compensation to third parties in the event of death, bodily injury, or damage to their property, which occurs because of your business activities, for example, if a resident’s family member slips on an upturned carpet.
Unlike Public Liability, Employers’ Liability cover is a legal requirement for anybody employing staff, including volunteers. It covers you financially for any compensation costs or legal fees that may occur because of company negligence. Employers’ Liability Insurance will also cover you for employees that have long left your business and may only now bring a claim against you.
Your carers will be skilled in what they do and usually have several qualifications, but their decisions are often determined by best practice to ensure the resident or patient is as comfortable as they can be. Unfortunately, this means mistakes can creep in. A single mistake can result in a negative impact on your patient, whether that be from medical treatment or advice. This can lead to a potential claim for medical malpractice.
Medical malpractice cover is not only a legal requirement to anyone providing professional healthcare services, but also offers peace of mind, by covering the cost of any losses that arise from defending and settling a claim. This means that during a claim, your business can continue to operate with as little disruption as possible.
Buildings and Contents Insurance
Of course, your business is home for your residents or patients. Ensuring ample furniture is provided should be a necessity. If they are accidentally damaged, you may need to replace them. The building itself is just as important. If, for instance, the premises suffer a flood, how would the building hold? In extreme cases such as a fire or explosion, a total rebuild may be necessary, which would cost a considerable amount.
Buildings insurance covers the cost of repairing damage to the structure of your property and provided that accurate sums insured are declared, it should cover the cost to rebuild the entire property. Contents insurance covers the cost of replacing or repairing your possessions if they are damaged, destroyed or stolen. It includes everything you would take with you if you moved premises, for example your furniture, kitchen appliances and computing equipment.
Are you at risk of underinsurance?
If a business is underinsured in any capacity, it could leave them with a financial burden, should a claim be made. While large corporations may be able to recover from the financial losses incurred because of underinsurance, small to medium sized businesses may feel the effects of the loss more keenly, owing to their sometimes already tight profit margins.
Underinsurance may happen for many reasons e.g., using out of date estimates of your building sums insured, having inadequate or unrealistic indemnity periods, or not reviewing your level of cover as your operating models change.
The most effective way of overcoming the risk of underinsurance, is by talking to an experienced and knowledgeable insurance broker.
The friendly team at Barnes Commercial can review your policy and make sure you have the correct level of cover in place.
Send an email to firstname.lastname@example.org or call 01480 272727 to make an appointment.