nursing home insurance coverage

Ensuring for Abuse Allegations Against the Elderly

While nursing homes certainly have many concerns when it comes to the care of their residents, none is more alarming or gets reported more often than concerns over elderly abuse. It’s estimated that around five percent of facility residents have been subjected to some form of mistreatment or abuse while maintaining residency in a nursing home or other living facility.

Owners need to be aware of such conditions and address any mistreatment that occurs since they will ultimately be made accountable and need adequate nursing home insurance coverage to deal with any pending litigation. Families who have reason to believe that abuse has occurred to a loved one will often seek retribution in a courtroom.

A serious issue that often goes unreported

The fact is that many incidents of abuse are either undiscovered or go unreported. Some of the reasons why this is true are due to embarrassment or fear of reporting by those who have been subjected to abuse. The frailty of the victim and the lack of physical means to report the abuse, such as having a disability or lack of access to a telephone are both contributing factors.

Victims often fear that reporting the crime will result in further attacks by the caregiver or nurse responsible for the assault, and they also fear that by reporting abuse they will be left alone leaving them to believe that they are now expected to care for themselves. Because of their fragile state of mind, they are good targets for predators, and their own self-consciousness, in turn, makes them unwilling accomplices.

Evidence suggests that in many cases the staff in nursing homes do not have adequate training to deal with residence and their constant needs. This can result in a failure to provide sufficient care to residents, improperly dispense medications, and fail to follow admission and discharge policies required by state regulators. In cases where residents have dementia, more aggressive incidents of mistreatment by staff have been reported.

This is a problem that is a concern for families, owners, and staff, and needs to be addressed properly and immediately. More stringent supervision may help resolve some issues, but when neglect and abuse are concerns, nursing home insurance coverage for abuse issues is an important policy that your client should be carrying at all times.


D&O Coverage Essential for Board Members in Healthcare Industry

Directors and officers working in the nursing home industry, whether for a public, private or nonprofit company, are entrusted with the management of corporations and their assets. It is vital that they exercise due care and diligence in managing any and all corporate affairs. Acts of negligence by an officer or director that results in losses to the corporation or its shareholders can result in their being held personally liable.


You should inform your clients in such a position, that to properly protect themselves in the event of a lawsuit, they, along with the organization itself, should purchase nursing home insurance coverage specifically under a directors & officers (D&O) policy. D&O insurance covers the corporation’s loss from indemnified directors and officers and the personal liability of directors and officers who are not indemnified by the corporation.


Types of claims that are covered by a D&O policy


There are a number of allegations that directors and officers working at assisted living facilities, nursing homes, medical facilities, or companies performing home healthcare, could potentially face. Claims and lawsuits are brought about by many different parties, including shareholders, physicians, creditors, employees, and patients.


Allegations can range from conflict of interests to fraudulent conduct. In addition, claims stemming from financial statements, a breach of contract, violation of articles or by-laws, improper self-dealing, and other wrongful acts can be filed. These institutions also come under fire for allegations of financial mismanagement, mistakes or errors in judgment, and negligence, which are all risk areas for directors and officers at healthcare organizations. Any covered loss will include payment for defense costs and indemnification if a settlement, up to the policy limits, is reached.


The important thing to remember for anyone assigned to a position as a director or officer is that, in the absence of D&O coverage, individuals, as well as the company itself, can be held personally liable for a number of allegations. These are exposures that can and should be covered by a comprehensive nursing home insurance coverage program that protects both, the entity, and the assets of the individuals on the board.