by: Michel
Beauregard - Senior Living Insurance Specialist
Rhodes & Williams Insurance Brokers
Operating a retirement residence places a great deal of
responsibility on the shoulders of those we trust to look after our
elderly. You do everything in your power to protect those who are
under your care, but are also responsible to ensure you have the
right professionals protecting your business interests. You protect
them - but you have to make sure someone is protecting you!
Risks that your business may be exposed to can involve property,
for example a fire or spoilage of medication resulting from off
premises power failure; or they can be of a totally different
nature not involving physical property. One such risk is lawsuits
that can have consequences up to and including bankruptcy.
Retirement home owners and operators are held to the highest of
standards and are in a position of trust. People expect the elderly
to receive proper care while being treated with dignity. All of
this, combined with the fact that our society is becoming more
litigious, contributes to increase your organization's exposure to
losses.
The public, your residents, and their children are much more
aware and eager to pursue abuse charges involving elderly
residents. Nursing home abuse can take the form of physical, sexual
or mental abuse. Thousands of cases are reported every year. It is
my sincere hope that you never experience this situation, resulting
in a lawsuit affecting your organization, however, if you do, your
insurance policy needs to offer the appropriate protection. Certain
insurance policies offer coverage under the Commercial General
Liability section for "Abuse". Depending on the circumstances, this
coverage would provide, up to the limit of insurance you purchased,
Compensatory Damages and Civil Defence costs with extensions of
coverage to include Criminal Defence Costs, Rehabilitation and
Counselling (keep in mind coverage may vary from insurer to
insurer). Not sure if you have this coverage? Make sure you discuss
with your trusted insurance broker. Not all policies have it
included, even though legal costs and resulting negative publicity
could have dire consequences for your business.
A combination of proper insurance coverage and the
implementation of loss prevention measures will save you money and
help you to ensure the safety of those under your care. Written
procedures for employees, and auditing by management, are one way
to prevent abuse claims. Should claims happen despite your best
effort, these procedures are helpful in successfully defending
against such allegations. Background checks and following up on
information obtained during the interview process, are all
recommended. Supervisors and staff need to be aware of your loss
prevention program and be adequately trained on these
procedures.
Your insurance broker is an invaluable service provider and your
primary point of contact regarding your policy. If they have
particular expertise in your industry, they should have templates,
tools and/or advice to help you in your loss prevention program,
resulting in lower costs and better care for your residents.
Regular contact with your insurance broker will help you avoid
the sometimes-tragic consequences of under-insurance. As your
business evolves, so do your insurance needs. For this reason, it
is critical that your insurance professionals be a partner in your
business, and up to date on the evolution of the care you
provide.