Operating without insurance is an “existential threat” to facilities
A worrying number of assisted living facilities are dragging their feet on renewing or securing insurance coverage for their operations. That’s a mistake that could cost them millions and their future in the long run. When paying double-digit percentage increases for necessary protection isn’t a financial option for you, take charge of your risk with a trusted Poms & Associates partner to lower cost.
Along with upending many of our ways of life, the pandemic shifted Americans’ views on aging and long-term care. Because of the pandemic, the majority––54%––of participants in a new MDRT study out this month are more anxious about dying early, becoming disabled or needing long-term care.
That translates to more Americans acquiring or maintaining life, disability and long-term care insurance.
While nearly one million Americans currently reside in assisted living facilities according to the National Institutes for Health, that number will only grow as Baby Boomers, or those between the ages of 57 and 75, age. In fact, 70% of those over age 65 will need some form of long-term care, according to the U.S. Department of Health and Human Services.
More Patients, More Risk
For many industries, this impending consumer glut could be nothing short of opportunity. But assisted living facilities face serious challenges brought on and exacerbated by the pandemic. Policy rates were increasing 5-30% annually even in 2019. Now, some businesses have seen their premiums triple for 2021 coverage.
COVID-19 has heightened everyone’s sensitivities around health risks. Claims from wrongful death to common slips, trips and falls can put a single mid-size facility out of business. There are so many risks that you must manage to secure and maintain professional and general liability insurance.
Combined with the skyrocketing cost, these factors have led a worrying number of care facilities to go without insurance coverage. You shouldn’t be one of them.
Cutting Costs, Not Corners
While you can’t control the number of insurers willing to cover you, there are several ways you can address your business’s risk. Many solutions that Poms experts assist in implementing also help facilities tackle associated challenges like employee hiring and retention, and local, state and federal regulation compliance.
It can be hard for your mid-size facility to find, inventory and reduce every risk that elder care homes face on your own. That’s why Poms’ experienced risk management consultants work with clients to evaluate vulnerabilities and leverage our support to mitigate them.
Common areas where facilities can reduce cost by reducing risk:
- Health department inspection pretest and audit: When we help our clients prepare for required inspections, they find and fix issues before they become unmanageable.
- Occupational Safety and Health Administration pretests and audits: Keeping team members healthy and safe is one of Poms’ priorities, no matter the industry. Our training inspections find areas for improvement and also reinforce employees’ good habits.
- Employee training: Facilities are facing a hiring crunch on top of everything else. By ensuring that all employees start with the same foundation of prevention and safety knowledge, they’re equipped for success.
- Data and tech adoption and utilization: Implementing data tracking and high-tech solutions can help these facilities keep tabs on their real-time risks. Our team knows what options work for bringing down costs and increasing ROI.
Our loss prevention team has nearly a century of combined experience reducing an organization’s risk and costs. They also become trusted advisors and partners for assisted living facilities navigating increasingly complex regulatory and operational challenges.
Find out how you can ensure your organization’s longevity by talking with a Poms advisor today.