Because the risks they face require a tremendous amount of expertise and understanding, agencies hope to help nursing homes and assisted living centers with their need for nursing home insurance and the coverage they may require for the many exposures associated with running an enterprise of this sort.
Nursing homes and/or assisted living centers seem to find their organizations under fire for not providing adequate care to their residents, which may not be the actual case, but the perception is all that is required for the media to showcase a facility that comes under accusations of abuse, or other complaints when an issue occurs with someone living in residence.
Are nursing homes unfairly targeted businesses?
There may be a higher likelihood of these types of businesses experiencing claims due to the nature of their work and the clientele they serve. It is often quite easy to find articles or TV ads indicating that attorneys heavily target this class of business. While the focus may primarily involve the professional liability side, other lines of business can also have significant potential for legal professionals as well.
While nursing homes and assisted living centers come in various sizes to accommodate a small, or large group of residents, the coverages needed are fairly consistent. One thing is certain; insuring nursing homes requires a high degree of expertise as well as a solid commitment and extreme attention to detail. The reason for this is that they represent some unique exposures and have some significant severity potential.
Agents interested in targeting this area should be aware that education and training are crucial, so it is strongly suggested that the staff (producers, account execs, customer service reps, etc.) handling this class receive all of the training necessary to ensure their competency.
Chances are that there will probably be a limited number of carriers for this type of risk. However, as with many classes of business, there are always carriers looking to get into new segments, therefore they need to show a commitment to this market, and explain the risks they are willing to insure, as well as what makes their product offering unique.
While liability is probably more of the major issue, property losses also do occur. Ensuring that property values are current is very important. Agents should be well educated in other available lines of valuable nursing home insurance coverages as well.