Understanding the risks your clients face requires a tremendous amount of expertise on the part of you, the broker. Agencies hoping to aid nursing homes and assisted living centers with their expansive need for insurance for nursing homes need to do a thorough job of listing the many risks that exist. In this way they can then provide the coverage required for the many exposures associated with running this sort of enterprise.
Nursing homes in particular seem to find their organizations constantly under investigation for claims that they were not providing adequate care to their residents, and while that may not be the actual case, the perception is really all that’s required for the media to highlight a facility coming under such accusations, whether abuse, or any other complaints when issues occur with residents.
Nursing homes often unfairly targeted
There may be a higher likelihood of nursing homes experiencing claims due to the nature of the services they offer and the clientele they serve. It’s quite easy to find news stories on nursing home scandals and attorneys heavily target this class of business as well. While the focus may primarily involve the professional liability side, other lines of insurance can also play into the equation, having great potential for brokers.
While nursing homes come in various sizes to accommodate groups of residents both small and large, the coverages needed are invariably the same. The fact remains that insuring nursing homes requires a high degree of expertise and extreme attention to detail. The reason being that this market represents some unique exposures and has the potential to experience significant losses.
Agents should be aware that education and training are crucial, so it is strongly suggested that brokers handling this class receive all of the tools necessary to ensure their success. As with many classes of business, there are always carriers looking to get into new segments, therefore they’ll need to show a commitment to this market and explain which risks they are willing to insure, as well as what makes their product offering unique in comparison.
While liability is probably the major issue, property losses also do occur from time to time. Ensuring that property values are current is a very important aspect in determining policy needs. Brokers should go over any and all available lines of insurance for nursing homes.