Securing Insurance with an Inadequate CQC Rating
The Care Quality Commission (CQC) requires all care and nursing homes to have insurance, and without it, you will be unable to operate. The mandatory insurance requirements from the CQC are Employers’ Liability and Public Liability cover. Any additional covers will depend on the type of care facility you own. If a care facility is unable to secure adequate insurance, residents will need to find alternative accommodation, and staff are likely to lose their jobs.
Many care homes have no difficulty in securing insurance but when a care home has an inadequate rating by the CQC, finding insurance can prove extremely challenging. Not all insurers are willing to provide terms for care facilities with an inadequate CQC rating, and when they do, premiums can be higher, and restrictions may be put in place, such as a limit to the number of service users (residents allowed).
According to the National Institute for Health and Care Research, around 1 in 5 care homes are rated ‘inadequate’ or ‘requires improvement’ in the UK, which can leave these care homes with only a small range of insurance options and in turn, at risk of closure.
Barnes Commercial has built strong relationships with an extensive panel of insurers, who specialise in care home insurance, including some that will offer terms to care homes with inadequate CQC ratings.
Case Study: Obtaining insurance with an inadequate CQC rating
Our client is the owner of several care homes in the southeast of the UK and is an example of how working closely with a broker can help secure favourable insurance terms, even with an inadequate rating. Our client came to Barnes Commercial because he was unhappy with his current provider and their ability to find him an affordable insurance solution.
One of the care homes had an inadequate CQC rating but our client and his team had been working with the CQC to create an action plan for improvements. We shared this with potential insurers who wanted to see evidence of what work was being planned, by when, and what had already been done to improve the care home. Ensuring the action plan was up to date was vital in arranging the insurance.
Areas to focus on to improve your CQC rating
When speaking with our care home clients whose facility had an inadequate CQC rating, they tell us that some of the most common reasons cited are poor record management and health and safety issues.
If these areas are not managed effectively, you could be putting your patients/residents, staff and your business at risk. Patient care will be at the heart of everything you do, so having robust systems in place will help you to perform at your best. For example, having a digital recording system in place, can provide you with greater governance, stronger compliance and help to ensure quality outcomes for those in your care. It can also mean recording of data will be faster, medication management will be safer and you are more ready for inspections.
Health and safety hazards are also a regular source of inadequate ratings and an area that every care home owner needs to be on top of at all times. One of CQCs fundamental standards includes safety, which means providers must assess the risks to your health and safety during any care or treatment and make sure staff have the qualifications, competence, skills and experience to keep you safe.
Our process to secure your care home insurance
Our specialist Care Home Insurance adviser, Luke Green, can support you with tailored advice on how to secure an insurance solution that will bring you peace of mind, whilst satisfying the CQC.
He will take the time to get to know your business and its current situation, so he can fully understand how he can help. He will also help you to gather and collate all your supporting documentation, including your action plan and any evidence to support your submission, for example, from your local authorities. He will then use these to advise a panel of insurers on your situation and what your business is doing to improve your ratings. Demonstrating your commitment to improving your situation will typically be positively received by the insurers and helps us to obtain an insurance quotation for you that will protect your business from commercial risk.
