Adult Daycare Insurance Policy Information
Adult Daycare Insurance. As the baby boomers are approaching their golden years, the need for adult day care centers has exponentially increased.
These facilities provide the elderly with safe havens while their loved ones are unable to look after them; they offer assistance with personal care, provide transportation, assist with medications, and provide opportunities for socialization, too.
Adult day care facilities provide respite services for family members who care for elderly or disabled adults. They provide a safe environment, companionship, food, and planned activities for their clients. They may assist clients with daily living activities, such as eating or toileting.
Prescribed medication can be administered but most facilities do not have staff nurses. There may be volunteers as well as paid staff members. Social activities may include crafts, exercise, games, parties, or field trips
These facilities are generally open five days a week but do not offer overnight stays. Adult day care centers are regulated by the states.
As the operator of an adult day care center, the services you provide are invaluable; however, there are a number of risks that are associated with operating this type of facility.
Accidents can happen that can affect patrons, employees, and vendors; your property could be damaged in an act of nature or vandalism; someone could file a lawsuit against you.
These are just some of the examples of the issues that can arise. In order to protect yourself from the financial obligations and legal implications that are associated with the liabilities you face, having the right type of adult daycare insurance coverage is essential.
Adult daycare insurance protects your facility from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked adult daycare insurance questions:
- What Is Adult Daycare Insurance?
- How Much Does Adult Daycare Insurance Cost?
- Why Do Adult Day Care Centers Need Insurance?
- What Type Of Insurance Do Adult Day Care Centers Need?
- What Does Adult Daycare Insurance Cover & Pay For?
What Is Adult Daycare Insurance?
Adult daycare insurance is a type of insurance coverage specifically designed for businesses that provide daycare services for older adults or adults with disabilities. This type of insurance typically includes coverage for general liability, property damage, and medical expenses related to injuries or accidents that occur on the property or while under the care of the adult daycare facility.
It may also include coverage for employee injuries or accidents, as well as protection against lawsuits or other legal actions. Adult daycare insurance is designed to protect the business and its employees from financial loss in the event of an accident or incident.
How Much Does Adult Daycare Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small adult daycare facilities ranges from $77 to $99 per month based on location, size, payroll, sales and experience.
Why Do Adult Day Care Centers Need Insurance?
Adult daycares need insurance for several reasons:
Liability Protection: Adult daycares are responsible for the well-being and safety of their clients. Adult daycare insurance can provide protection in case a client is injured or suffers harm while in the care of the daycare.
Property Damage: In the event of a fire, flood, or other natural disaster, insurance can cover the cost of repairs or replacement of damaged property.
Business Interruption: If the adult daycare is forced to close temporarily due to an event such as a natural disaster or a pandemic, insurance can provide coverage for lost income.
Legal Defense: If a client or their family files a lawsuit against the adult daycare, insurance can cover the cost of legal defense and any potential settlements.
Employee Coverage: Adult daycares may also need insurance to cover their employees, including workers' compensation and liability protection for employees who may be injured on the job.
Overall, insurance provides adult daycares with financial protection in the event of unforeseen circumstances, allowing them to continue providing care for their clients without incurring significant financial losses.
What Type Of Insurance Do Adult Day Care Centers Need?
The specific types of adult day care insurance coverage required depends on a variety of factors; the location and size of the facility, the number of clients that you work with and staff that you employee, and the specific services you offer are just some of the factors that will affect the type of coverage you should carry.
However, with that said, there are certain types of insurance that all adult day care providers should carry, regardless of the aforementioned factors. These include:
- Commercial General Liability - This type of coverage is an absolute must. It provides coverage for third-party injuries and property damages. For example, if you inadvertently damage a client's wheelchair, this type of insurance will pay for the damages; or, if a vendor slips and falls at your facility, this coverage will pay for the necessary medical care.
- Commercial Property - You'll also need to invest in commercial property insurance, which protects the physical structure of your business, as well as anything that it contains. If a fire breaks out, your policy will cover the cost of repairing or replacing anything that was damaged or lost.
- Workers' Compensation - Should an employee sustain an injury while performing a work-related function, workers' comp insurance will cover the cost of his or her medical care, as well as any wages that the employee may lose while recovering.
These are just some examples of the type of adult day care insurance coverage that should be considered. Comprehensive policies are available that offer all of these coverage options - and more - in a single policy
Adult Daycare Center's Risks & Exposures
Premises liability exposures are extremely high due to the ongoing presence of elderly clients at the facility, some with cognitive or physical impairments. To prevent slips, trips, or falls, all areas must be well maintained with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Staffing must be sufficient for adequate supervision. Evacuation drills should be conducted regularly. Procedures should be posted that address all emergencies, with staff members trained in their use. References for all employees and volunteers must be verified, including criminal background checks. Access to the building must be limited during operating hours to keep clients from wandering away.
All equipment used for physical activities should be inspected regularly to prevent collapse and injuries. Written policies must be established that address when a client is too ill to attend and when the facility will contact caregivers or medical emergency providers in case of illness or an accident. Off-premises exposures include visits to clients' premises.
Abuse and molestation exposures must be considered when employees and volunteers supervise vulnerable individuals. Abusers are never covered under the facility's policy. While there is some coverage for the facility where the abuse takes place, it is very limited. More complete coverage should be purchased from specialized markets. The facility is responsible for taking all possible care to protect its clients from predatory staff members through background checks, monitoring, and supervision and by reporting all allegations of abuse to the proper authorities.
The facility must also adequately supervise clients to prevent one client from abusing or molesting another. The more vulnerable the potential victim, the more vigilant the facility must be.
Workers compensation exposures are high from hernias, back sprains, and strains from lifting, slips and falls, and exposure to communicable diseases. All employees should have up-to-date immunizations to prevent the spread of communicable diseases. Cognitively challenged clients may become confused and unruly and can injure employees by biting, hitting, kicking, and pulling hair or earrings. Employees should be trained in how to deal with these clients and have access to emergency numbers in case of problems. Unauthorized visitors can pose a threat to employees as well as clients.
Property exposures include an office, kitchen, and activity rooms. Ignition sources include electrical wiring, stoves for cooking, and heating and air conditioning systems. All wiring must be well maintained and up to code. Overriding circuit breakers and fuse boxes should not be allowed. The high volume of paper, craft supplies, and other items contribute to the spread of fire. Wood and/or plastic furnishings increase the fire load.
Most equipment is susceptible to and easily damaged by fire. While food preparation is generally limited to stovetop or microwave cooking, any cooking increases the potential for fire loss.
Crime exposures are primarily from employee dishonesty. Hazards increase without proper background checks. All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Receipts should be issued for any cash payments received. Bank deposits should be made on a timely basis to limit the buildup of cash on premises. Audits should be performed at least annually.
Inland marine exposures are from accounts receivable if the facility offers credit, computers, and valuable papers and records for clients' information. Duplicates of all data should be made and stored off premises. Certain types of mobile equipment may be taken off premises for various activities.
Business auto exposures are very high if the facility transports clients to and from their homes to the facility or to off-premises activities. The age and physical condition of clients will result in higher medical and liability costs if there is an accident.
All drivers must have the appropriate license for the type of vehicle used to transport clients and have acceptable MVRs. Appropriate supervision should be provided when disabled clients or those with dementia are transported. All vehicles must be properly maintained and maintenance records kept at a central location.
What Does Adult Daycare Insurance Cover & Pay For?
Adult daycares can be sued for various reasons, including negligence, abuse, inadequate care, and more. Insurance policies, such as General Liability Insurance, Professional Liability Insurance, and Workers' Compensation Insurance, can provide financial protection to these facilities in case of lawsuits. Here are a few examples:
Reason: If an adult daycare fails to provide adequate care or supervision, resulting in injuries or accidents, they may be sued for negligence.
Insurance: General Liability Insurance can help cover the costs of legal fees, settlements, and judgments related to the lawsuit.
Abuse or Mistreatment:
Reason: Cases of physical, emotional, or sexual abuse against clients by staff members or other clients can lead to lawsuits against adult daycares.
Insurance: General Liability Insurance and Professional Liability Insurance can help cover the costs associated with these claims, including legal fees, settlements, and judgments.
Reason: If an adult daycare provides medical care and a client suffers harm due to misdiagnosis, improper treatment, or medication errors, they can be sued for medical malpractice.
Insurance: Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, can help cover the costs of legal defense, settlements, and judgments arising from these claims.
Breach of Contract:
Reason: If an adult daycare fails to fulfill the terms of a contract with a client or family, they may be sued for breach of contract.
Insurance: Professional Liability Insurance can help cover the costs associated with defending against a breach of contract claim and any resulting settlements or judgments.
Employment Practices Liability:
Reason: Adult daycares can be sued for wrongful termination, discrimination, harassment, or other employment-related issues.
Insurance: Employment Practices Liability Insurance (EPLI) can help cover the costs of legal defense, settlements, and judgments related to these claims.
Slip and Fall Accidents:
Reason: If a client or visitor is injured in a slip and fall accident on the adult daycare's property, the facility may be sued for not maintaining a safe environment.
Insurance: General Liability Insurance can help cover the costs of legal defense, settlements, and judgments related to slip and fall claims.
Reason: If an employee is injured while working at the adult daycare, they may be entitled to workers' compensation benefits and may sue the facility if their claim is denied or mishandled.
Insurance: Workers' Compensation Insurance can help cover the costs of medical expenses, lost wages, and rehabilitation for injured workers, as well as legal fees and settlements related to workers' compensation claims.
Insurance policies play a crucial role in protecting adult daycares from the financial burden of lawsuits. By selecting the appropriate coverage, facilities can minimize the impact of legal claims and ensure the continued operation of their services.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8322 Individual and Family Social Servicess
- NAICS CODE: 624120 Services for the Elderly and Persons with Disabilities
- Suggested Workers Compensation Code(s): 8829 Nursing or Convalescent Home - All Employees, 8824 Retirement Living Centers - Health Care Employees, 8826 Retirement Living Centers - All Other Employees & Salespersons, Drivers
8322: Individual and Family Services
Division I: Services | Major Group 83: Social Services | Industry Group 832: Individual And Family Social Services
8322 Individual and Family Services: Establishments primarily engaged in providing one or more of a wide variety of individual and family social, counseling, welfare, or referral services, including refugee, disaster, and temporary relief services. This industry includes offices of specialists providing counseling, referral, and other social services. Government offices directly concerned with the delivery of social services to individuals and families, such as issuing of welfare aid, rent supplements, food stamps, and eligibility casework, are included here, but central office administration of these programs is classified in Public Administration, Industry 9441. Social Security offices are also classified in Public Administration, Industry 9441. Establishments primarily engaged in providing vocational rehabilitation or counseling are classified in Industry 8331; and fraternal, civic, and social associations are classified in Industry 8641.
- Activity centers, elderly or handicapped
- Adoption services
- Adult day care centers
- Aid to families with dependent children(AFDC)
- Alcoholism counseling, nonresidential:except medical treatment
- Centers for senior citizens
- Child guidance agencies
- Community centers
- Counseling centers
- Crisis centers
- Crisis intervention centers
- Day care centers, adult and handicapped
- Disaster services
- Emergency shelters
- Family counseling services
- Family location services
- Family service agencies
- Helping hand services
- Homemaker's service, primarily nonmedical
- Marriage counseling services
- Meal delivery programs
- Multiservice centers, neighborhood
- Neighborhood centers
- Offender rehabilitation agencies
- Offender self-help agencies
- Old age assistance
- Outreach programs
- Parole offices
- Probation offices
- Public welfare centers, offices of
- Referral services for personal and social problems
- Refugee services
- Relief services, temporary
- Self-help organizations for alcoholics and gamblers
- Senior citizens associations
- Service leagues
- Settlement houses
- Social service centers
- Telephone counseling service
- Traveler's aid centers
- Youth centers
- Youth self-help organizations
Adult Daycare Insurance - The Bottom Line
There are many risks that adult day care's face. Speak to a reputable insurance agent to learn more.
Additional Resources For Miscellaneous Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Adult Daycare
- Agriculture, Forestry, Fishing & Hunting
- Bail Agent
- Control of Well
- Electric Utilities
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Mail Order
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Portable Sanitation
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guard
- Surety Bonds
- Waste Disposal Landfill
- Wedding Planner
- Specialty Accident And Sickness / AD&D
- Specialty Amusement Parks And Rides
- Specialty Auctions And Farmers Markets
- Specialty Business Risks
- Specialty Communication
- Specialty Design
- Specialty Drugs And Alcohol
- Specialty Employee Protection
- Specialty Energy
- Specialty Environmental Risks
- Specialty Firearm And Shooting
- Specialty Hazardous Materials
- Specialty Health Risks
- Specialty Machinery And Tools
- Specialty Merchandise
- Specialty Mobile And Modular Homes
- Specialty Motorcycle Risks
- Specialty Natural Disasters
- Specialty Oil And Chemical
- Specialty Prize Indemnification
- Specialty Programs
- Specialty Railroad
- Specialty Security Risks And Equipment
- Specialty Substandard Risks
- Specialty Travel
- Specialty Weather Related
Businesses need insurance for several reasons. Firstly, insurance protects businesses from potential financial losses that may result from unexpected events, such as accidents, natural disasters, or lawsuits. This financial protection can help businesses recover from unexpected events and continue to operate.
Secondly, business insurance can provide businesses with liability protection. This means that if a business is sued for damages or injuries that occurred on their property or as a result of their products or services, the insurance company will cover the legal costs and damages. Without insurance, businesses may have to pay these costs out of pocket, which can be financially devastating.
Thirdly, commercial insurance can also provide businesses with peace of mind. When businesses have insurance, they can focus on running and growing their business without constantly worrying about potential financial losses or legal issues.
Finally, business insurance can also be a requirement for certain businesses. For example, many businesses that work with the government or large corporations may be required to have certain types of insurance in order to do business with them.
In conclusion, businesses need insurance for financial protection, liability protection, peace of mind, and to meet certain requirements. It is an important aspect of running a successful business and can help ensure the long-term stability and growth of the company.