Senior Living

Continuing Care Retirement Centers, Independent Living, Assisted Living, Memory Care, Respite/Rehabilitation, Skilled Nursing as part of CCRC

According to the Population Reference Bureau the population of those age 65+ in the United States will nearly double from 52 million in 2018 to nearly 95 million by 2060 with ~2 million needing nursing care by 2030 and many more living alone and independently.   As a provider of services to this segment of the population you are probably keenly aware of these figures 

 

Those of you vested and investing further in the quality of services provided, developing and retaining your staff, enabling the fulfillment of positive life experiences for your residents through all levels of care and ultimately developing outstanding reputations deserve to be seen through an equally positive lens when looking for your insurances solutions.    As an independent agency, Distinction Risk Solutions has worked diligently and deliberately to find insurance partners who will do just that.

Exposures

Bridging the gap from understanding to "covered"

Risks associated with providing professional advice, guidance and recommendations while protecting your clients' information and assets in a highly digital world should be front and center in your exposure profile assessment and your mind for insurance protection; however, other exposures from client visitation to employee theft, benefit plan construction, employment and client engagement practices, and bad weather can have a meaningful impact on your bottom line as well.

The exposures to loss you face as a business providing services and residence to the Senior  population are as varied and complex as the operations you conduct, certainly more than can be captured in one page. On top of exposures from your customers are those exposures resulting from your responsibility to your team of employees, employees with responsibilities 

  • Liability arising from your facilities, ongoing operations and services can be signficant with falls by residents falls at the top of the list with potential significant injury  - According to CDC's Injury Monitor "every 11 seconds an older adult is treated in an emergency room for a fall and every 19 minutes one dies from a fall in America"

  • Patient Care practices can result in liability claims of abuse (physical, psychological, sexual) and neglect as well as result in unintentional injury

  • Food handling and preparation, medication administration

  • Your employees are a key asset in your ability to deliver quality services and given the interactive nature  of their roles they are at significant risk for injury ranging from soft tissue injuries like back strains to broken bones from slip, trip and fall hazards, burns, vehicular accidents and more.

  • Hiring and maintaining teams means potential for 

  • Providing transportation services for your residents, their guests and others can lead to accidents resulting in physical injury to multiple clients, other drivers and lead to loss of use to your vehicle fleet.

  • Property losses  can vary significantly from location to location based on the services and amenities provided: ranging from specialized equipment like AEDs to property of residents and staff to your facility buildings and are exposed to multiple sources of loss. 

    • Natural weather perils like wind/hail, flood, freeze

    • Fire hazards from kitchens or allowed heating sources in individual units

    • Theft

    • Power failure, equipment breakdown

Liability 

  • Errors in advice provided, recommending investments not compatible with strategy, or execution of plan not in alignment with client goals and risk tolerance

  • Improperly executed or stored client agreements and customer authorizations

  • Fiduciary breach by trading or investing in ways not optimally beneficial to client

  • Failure to ensure maintenance of confidentiality of financial statements and other personal information

  • Misleading/misinterpreted marketing and advertising or client reference without appropriate permission

  • Failure to adequately explain investment risks of various products

  • Missed execution dates leading to adverse tax consequences for client

  • Computer virus or hacking attack of systems results in disclosure of client information

  •  Though less likely to occur in a professional office setting, slips, trips and falls can occur due to loose mats, computer cords, slick entrances and sidewalks.

  • While providing employee  benefit plans investment options aren't monitored resulting in excessive plan fees and underperformance

  • Failure to effectively document reasons for declining an employment applicant or releasing an employee

Property 

Varies significantly dependent upon whether you work from home, lease your office or own your building.  

  • Loss to electronic equipment (computers, printers, servers) and records from: power failure or surges, malicious attacks on computer hardware and software, loss or irreparable damage while traveling

  • Faulty wiring or overheated equipment leading to fire

  • Fund misappropriation and theft

  • Wind/hail in the Central US and increasingly more states, flood nearly nationwide, wildfires in the Mountain West and West 

Personnel 

  • Despite the low hazard nature of an office environment employees can be impacted by auto accidents while out on client visits or from repetitive motion injuries.  

  • Death or injury to a key employee can mean lost expertise, relationships and an impact to your bottom line

Automobile

  • Employees traveling  in their personal vehicles, rental vehicles or company owned vehicles between office locations, to client visits, for business errands or to professional conferences 

.

Key Liability Coverages

Meant to cover you and your business for loss allegations from and indemnification of third parties (e.g. customers, visitors to your premises, shareholders, competitors, etc.) arising from bodily injury, property damage or financial damage.  While you'll face some normal general liability exposures, as a financial firm in a highly digitized environment your highest severity exposures will likely come from the professional advice, fiduciary responsibilities and services you offer as well as your exposure to Cyber loss.

CGL
Cyber
Management Liability
Financial Professional E&O
CGL
Cyber
Management Liability

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  • General Liability (via BOP or CPP)

    • Premises and Ongoing Operations

    • Products and Completed Operations

    • Damage to rented premises

    • Medical payments to others

    • Personal and Advertising Injury 

  • Professional Liability/E&O (Errors & Omissions) 

  • Cyber - While coverage for cyber perils is far from standardized some key liability coverages available are:

    • Data breach mitigation

    • Network security liability

    • Funds transfer fraud

    • Media liability

    • Social engineering

    • PCI, Regulatory proceedings and assessment 

  • Management/Executive Liability While coverages can be purchased separately, a more encompassing program includes key management liability coverages in one offering, reducing your chances of having unintended gaps, which could leave your organization and you personally open to significant financial consequences.

    • Directors and Officers (D&O) 

    • Employment Practices Liability (EPL) 

    • Fiduciary 

      • Employee Benefits Liability (EBL) 

 

Some things to consider:

 

  • Limits of protection relative to your risk profile, the legal climate of your location(s), your client profile and the overall cost of insurance

  • Defense costs provided within or outside of limits for your liability covers

  • Defense provision basis (right and duty, at carrier option, etc.)

  • Basis of coverage, claims-made vs. occurrence

    • Are claims-made step factors utilized?

  • Presence of hammer clauses

  • 1st and 3rd Party coverage for Cyber and/or your EPL coverages

  • Interplay of Side A, B and C limit availability in D&O coverage

  • When purchased as a full Management Liability suite, are limits shared and if so, how

Property Coverages

Focused on indemnifying you for a covered loss to buildings and associated equipment, your business personal property, valuable papers and records, and business income.  It's important to remember you are only made as whole as your coverage is structured for and your causes of loss are applicable to.   Given the generally straight forward property exposures of many advisory firms, your core property, including business income, and general liability needs can likely be met by a BOP (Businessowners Policy) with a few added endorsements.  

Other Property
Fidelity
Business Income
Business Personal Property
Cyber1stParty
Building

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  • Building

  • Business Personal Property

  • Inland marine

  • Equipment Breakdown

  • Business Income with Extra Expense

  • Crime Coverage or Financial Institution Bonds

  • Cyber - 1st Party

Some things to consider:

  • Coinsurance requirements

  • Covered causes of loss: Multiple forms exist, ensure you have the right one for your circumstance.

  • Coverage needs for property away from your business location: Dependent upon the types of property you travel with or move from office to 

  • Deductibles 

  • Levels of Business Income coverage:  Are you subject to a defined dollar limit? Are you covered for actual losses sustained on an unlimited basis for one year?   Is utility service disruption an included cause of loss? Are you exposed to cyber loss and dependent on electronics for your core operations?

  • Loss reimbursement basis:  Actual cash value, replacement cost, agreed to value, functional value or other basis determines the level of indemnification you might receive.

Additional Coverages & Protection

Beyond your property and key liability coverages, you may have need for additional coverage, dependent upon: whether or not your firm has the number of employees in a state requiring you to provide workers' compensation coverage, whether you provide vehicles for your team to use in business or have them drive or rent autos on behalf of the business, your desire to obtain higher limits of insurance than can be obtained by your primary liability policies.

 

 

 

 

 

 

 

  • Workers' Compensation

  • Employers Liability

  • Hired and Non-Owned Auto

  • Business Auto

  • Excess/Umbrella

Some things to consider:

  • State requirements for providing Workers' Compensation coverage based on business legal structure and employee counts

  • Even if you are not required by law in your state to provide Workers' Compensation, do you have employee exposures which you could be liable for, creating a coverage gap

  • Required underlying limits to prevent coverage gaps between primary and excess coverages

  • Auto coverage completeness:  If your only auto is a business auto, are you or your employees appropriately covered for driving other vehicles?

WC
Hired and Non-Owned
Excess and Umbrella
Business Auto
EL

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Services

Navigate your way to us, then sit back and enjoy the serenity of knowing your covered.

 

Focused on the Senior Living industry, facilitated by Distinction Risk Solutions and delivered in conjunction with our selected partners, for your benefit.  

  • The Distinction Way insurable risk advisory services

  • Partner provided services

    • Access to risk control experts with over two decades of industry related experience - phone, email, in person

    • Access to training media for patient transfer safety, abuse prevention, facility safety and more

    • Expert claim staff dedicated to the healthcare industry 

    • Access to HR and Employment Practices help line

    • Access to discounted background checks 

Content on this page is for informational purposes only and may not be applicable to all circumstances.