As a care home owner, ensuring the safety and well-being of your residents is your top priority. Insurance is a crucial part of managing risk and protecting your business, but it’s important to regularly review your policies to ensure you have the right cover in place. Here are 10 reasons why care home owners should review their insurance policies in 2023:
- Changes in the Care Industry: The care industry is constantly evolving, with new regulations, legislation, local authority requirements and industry developments. This means that insurance requirements can change over time, and it’s important to ensure your policy covers any new risks or areas of concern.
- Evolving Risks: The risks associated with running a care home can change over time. For example, in recent years there has been an increase in cyber security risks, which may not have been a concern in the past. By reviewing your insurance policies regularly, you can ensure that you have cover in place for the risks that are most relevant to your business.
- Rising Costs: Insurance premiums can increase over time due to factors such as inflation, increased claims or changes to the insurance market. By reviewing your policies regularly, you can identify any cost-saving opportunities, such as combining policies or changing provider.
- Underinsured: Many care home owners underestimate the risks associated with running their business, and may be underinsured as a result. Especially with high inflation there is a growing number of care home owners who are not increasing their cover limits in line with inflation. By reviewing your policies regularly, you can ensure that you have adequate cover in place to protect your business and your residents in the event of a claim.
- Overinsured: On the other hand, some care home owners may be paying for cover they don’t need, or have duplicate policies in place. By reviewing your policies regularly, you can identify any areas where you may be overinsured and make adjustments accordingly to save you money.
- Changes to Property: If you have made changes or renovations to your care home, it’s important to review your insurance policy to ensure that your property is still adequately covered. This includes both structural changes, increased bed capacity and changes to your contents or equipment.
- Reputation Risk: Care homes are particularly vulnerable to reputation damage in the event of a claim or incident. By reviewing your policies regularly, you can ensure that you have the right coverage in place to protect your reputation and manage any potential fallout.
- Third-Party Claims: Care homes can be held liable for a wide range of third-party claims, such as slip and fall accidents or negligence claims. By reviewing your policies regularly, you can ensure that you have adequate cover in place for these types of risks.
- Staffing Changes: Changes in your staffing levels or structure can impact your insurance requirements. For example, if you hire new staff members, increase the number of agency staff or change your staffing ratios, you may need to adjust your liability cover accordingly.
- Peace of Mind: By reviewing your insurance policies regularly, you can have the peace of mind of knowing that you have the right cover in place to protect your business, your residents and your reputation.
Working with an insurance broker like Aldium can help ensure that you have the right cover in place for your care home. A broker can help you identify any gaps in your cover, provide advice on insurance requirements and help you find the best policy at the right price.
In summary, reviewing your insurance policies regularly is essential for ensuring that you have the right cover in place to protect your care home. By identifying any gaps or areas of concern, you can adjust your policies accordingly and have the peace of mind of knowing that you are protected from potential risks and liabilities. Working with an insurance broker like Aldium can help simplify the process and ensure that you have the right cover in place for your specific needs.
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