Unlike most businesses, nursing homes and assisted living facilities have many different needs when it comes to insurance policies. In addition to carrying liability coverage and workers’ compensation, assisted living facilities must also consider coverage for directors and offers as well as instances of physical and sexual abuse. All of these factors help to determine the cost of nursing home insurance.
Major Factors to Consider
Assisted living facilities are in a unique situation, and they need coverage that’s flexible while providing benefits that will protect them in the event of a tragedy. When determining what insurance policies they need, many nursing homes consider:
- Probability of employee dishonesty – actions like theft or physical assault can be covered by insurance policies
- Condition of the property and its additions – older property will more likely necessitate insurance coverage
- Transportation – the more frequently assisted living facilities drive their residents around, the more they need automobile coverage
- Residents’ personal property – nursing homes that allow residents to bring many of their personal effects may want to look into policies that cover such items.
The cost of nursing home insurance may seem high at first, but the financial consequences of being uninsured far outstrip the price of a quality policy. Assisted living facilities that plan for long-term success take into account the possibility of a tragedy and take steps to protect themselves from financial ruin.