Nursing Home Insurance
If you own or run an establishment that cares for the elderly and adults who are unable to perform the basic activities of daily living (ADLs), you’re likely to require nursing home insurance to provide financial cover for a range of eventualities.
The responsibilities and potential problems associated with running a nursing home are unique and, as such, you’ll need insurance that’s designed with your specific needs in mind. When arranging your protection, it is important to read your policy wording carefully, both to check for exclusions and to tailor the insurance package to your specific needs.
Some of the policies that can be included in a nursing home insurance package include:
- Buildings insurance:
As your business property, your nursing home can benefit from protection against risks that may threaten the main structure of the building and any permanent fixtures and fittings. If your business premises suffers damage due to factors such as extreme weather or malicious damage resulting from vandalism, commercial buildings insurance can help fund necessary repairs or replacements – including any costs involved in meeting local authority requirements.
- Contents insurance:
While buildings insurance is designed to protect the main structure of your nursing home, contents insurance is designed to protect the items contained within it against damage, theft and loss. If necessary, this can extend to cover items such as stock and medical equipment, the food, drinks and medical supplies you provide to your residents, and your residents’ personal property (there is usually a limit to the monetary amount per resident that you can insure against). Contents insurance can also provide cover for your and your employees’ personal belongings and your own household contents if you live at your nursing home.
- Tools and equipment insurance:
You may want to purchase specific cover that can protect the tools and equipment used in your nursing home against damage, theft and loss. This can also include equipment breakdown. Items that can be included under this policy can include hoists, lifts, stairlifts, central heating, air conditioning, boilers, security and sound systems, photocopiers and office equipment.
- Public liability insurance:
Supplementary to contents insurance, public liability insurance can provide cover against accusations that your business has caused damage to individuals or their property while in your premises. As your nursing home is likely to have members of the public visiting on a daily basis, and contents insurance does not cover third-party risks, this is potentially an important policy to include in your nursing home insurance package.
Your nursing home insurance package will not cover any medical practitioners involved in your nursing home – they will instead need to purchase their own professional indemnity cover. You can, however, purchase medical malpractice insurance, which can help defend against a claim that you or your employees have been guilty of malpractice – including causing bodily or mental injury, illness, disease or death to a resident.
You could choose to include abuse and molestation insurance, which can provide financial assistance if your residents accuse you or your staff of abuse. In a similar vein, employee dishonesty cover can help protect you and your nursing home from financial loss due to the fraudulent acts or activities of your employees.
You may also want to purchase residents’ personal liability protection to help cover financial costs if one of your residents is accused of causing injury or illness to a third party.
- Employers' liability insurance:
This is a legal requirement if your nursing home includes employees, regardless of whether they are full-time, part-time, temporary or unpaid workers. Employers’ liability insurance can cover any financial costs or compensation in the event that one of your employees suffers injury or illness as a direct result of carrying out their working duties. This cover is especially important if any of your residents’ behaviour is erratic and unpredictable.
- Domiciliary care insurance:
Often offered as a separate insurance package, domiciliary care insurance can provide protection for yourself or your staff if you conduct care duties and nursing services to your patients through home visits.
- Directors and Officers insurance:
If your nursing home includes executive-level employees, directors and officers insurance can help provide financial assistance if those employees are accused of committing wrongful acts during their employment.
- Business interruption insurance:
Business interruption insurance can provide financial protection if your nursing home is unable to operate due to unforeseen circumstances, such as fire, unexpected extreme weather and problems with sanitation.
- Loss of registration:
Similarly, loss of registration can provide financial assistance to help supplement the financial depreciation to your business premises that can occur if your nursing home registration is revoked due to circumstances beyond your control.
How much does nursing home insurance cost?
As mentioned before, there's a good chance that your nursing home will be exposed to a set of different threats to another, similar business. As such, you should be looking to take out nursing or care home insurance that is tailored to your individual needs. Because of this variability, it's difficult to put a figure on the exact price of a nursing home insurance premium, without an analysis of your business and its circumstances.
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