Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an assisted care facility.
This article will discuss the primary insurance coverage for assisted living facilities, general liability insurance, as well as additional policies that are appropriate for this industry.
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Assisted Living Facility General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That An Assisted Living Facility’s General Liability Insurance May Cover
Example 1: A resident requests assistance in using the restroom late at night. She stumbles and falls on her way to the restroom, shattering her hip, since no one hears her. If your company is found to be culpable, general liability insurance will most likely assist cover damages due, including court-ordered payments and settlements.
Example 2: Due to a menu mix-up, a resident obtains food that he should not be consuming. He develops diabetic shock, which leads to major medical consequences. If held accountable, your company’s general liability insurance would most likely cover any ensuing damages, medical costs, or settlements.
Example 3: A visiting family member requests that one of your staff park her vehicle while she rushes to her father’s room. The employee obliges, but the vehicle is a stick shift, and he crashes it into a pillar supporting your building’s resident pickup/dropoff area. General liability insurance would most likely assist in paying any damage to the customer’s vehicle.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American assisted care facility costs $400-$700 per year for $1 million in general liability coverage.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Your Company Requires Insurance
Get a free quotation now to find out which insurance your company needs and how much they will cost.
Other Types of Coverage Required by Assisted Living Facilities
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all assisted care homes should have are as follows:
Insurance for Professional Liability
Professional liability insurance is often used by businesses that are responsible for performing sophisticated or sensitive tasks. This policy is especially crucial for an assisted living facility that provides vital care by assisting the elderly in living dignified lives. A professional liability coverage may shield you from substantial costs if your company provides skilled medical treatment that goes wrong.
Umbrella Insurance for Businesses
Commercial umbrella plans are an excellent choice for any company that does sensitive work in general. While ineffectual on its own, an umbrella policy is acquired in addition to other existing policies, providing for extra coverage that would otherwise be neglected by conventional insurance. With so many intricate factors at play in an assisted care company, this coverage may keep you protected in the case of unforeseen losses.
Coverage Options for Some Assisted Living Facilities
In addition to the policies listed above, your assisted living facility may need a few more kinds of coverage based on particular elements of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
If your company grows past the point where you can consistently handle your customers on your own, you’ll need a workers’ compensation coverage to protect your staff. Part-time and full-time employees are required by law to have workers’ compensation insurance. This insurance will cover workers who are injured on the job, including disability and death payments as a consequence of work-related occurrences.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.