Nursing home professional liability insurance has undergone many changes since the late 1990s. This was brought about by a number of litigation that began around mid-1990s that introduced the changes in the structure of residential care facilities.
Many insurers have left the market sub segment in the recent years thanks to a spate of economic losses. At the same time a number of nursing homes have also closed down. Both providers and self insured nursing homes have been badly affected by the economic downturn.
A new breed of ‘surplus line’ insurers has now come in that are subject to lesser regulations. This has caused the insurance price to shoot up. Simultaneously the providers have become more averse to taking risks and this has resulted in extremely high priced coverage with minimal protection.
Before purchasing a long term residential care coverage it is important that the buyer notes coverage exclusions of the policy. The coverage exclusions can be so vast that it is possible that the policy may deny coverage for any kind of claim that the insured may make. It is thus imperative that the buyer examines the exclusions thoroughly before purchasing a policy.
Also, you must be aware of sham policies that offer very less protection. There is a substandard form of policy that is referred to as “wasting” or “eroding” policy that offers very low coverage. It is best to buy a policy after consulting a legal professional who will be able to inform you in detail about the policy.