Skilled Nursing Facility Liability Insurance Policy Information
Skilled Nursing Facility Liability Insurance. As a skilled nursing facility (SNF), you provide an invaluable service to the patients that you care for. You go above and beyond to employ highly trained, experienced professionals, and you go above and beyond to adhere to all protocols. After all, your goal is to provide your patients with the best possible care.
Nursing homes provide care for those unable to care for themselves, including the elderly, those recovering from illness or injury, and those with long-term or chronic illnesses or disabilities such as Alzheimer's.
The facility may offer diagnostic tests, physical or occupational therapy, or short-term facilities for those whose needs are temporary. Medical assistance is available 24 hours a day.
There are several types of nursing homes:
- "Skilled care" homes provide around-the-clock physician and nursing care for patients who reside on the premises.
- "Intermediate care" homes have medical facilities and services available, but patients are able to provide a degree of care for themselves and do not need around-the-clock attention.
- "Personal care" homes provide boarding facilities and access to medical attention for patients who are ambulatory.
Nursing homes must be licensed by the state they reside in to legally operate.
But what happens if something goes awry? What if an employ makes a mistake that results in the mistreatment of a patient? What if a family member who is visiting their loved one who is residing at your facility slips and falls on the premises? What would you do if an employee was injured while he or she was on the job?
In any of these types of situations, you could be looking at serious ramifications that could have the potential to cause financial ruin.
In order to protect the residents, third-party visitors and vendors, your employees, and yourself from possible perils, it's important to carry the right type of skilled nursing facility liability insurance coverage.
Skilled nursing facility liability insurance protects your nursing home from lawsuits with rates as low as $187/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked nursing home insurance questions:
- What Is Skilled Nursing Facility Insurance?
- How Much Does Skilled Nursing Facility Insurance Cost?
- Why Do Skilled Nursing Facilities Need Insurance?
- What Type Of Insurance Do Nursing Homes Need?
- What Does Skilled Nursing Facility Liability Insurance Cover & Pay For?
What Is Skilled Nursing Facility Insurance?
Skilled Nursing Facility Insurance is a type of insurance that provides coverage for individuals who require medical and nursing care in a long-term care setting.
This type of insurance covers the cost of care provided in a skilled nursing facility, which is a type of care facility that provides 24-hour medical and nursing care for people who need help with daily activities such as bathing, eating, and dressing. Skilled nursing facility insurance can be purchased as part of a long-term care insurance policy, or as a separate policy.
The coverage provided by skilled nursing facility insurance can include things such as room and board, nursing care, rehabilitation, and other medical services.
How Much Does Skilled Nursing Facility Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small skilled nursing facilities ranges from $187 to $259 per month based on location, number of beds, payroll, sales and experience.
Why Do Skilled Nursing Facilities Need Insurance?
While a skilled nursing facility (SNF), also known as a nursing home, is an invaluable resource for the patients that you treat and their loved ones, at the end of the day, this type of facility is a business. Just like any other type of business that works with clients, deals with the public, and employs workers, there are a number of possible perils that you could end up facing.
As mentioned above, some of the potential liabilities that SNFs could face include:
- Mistreatment of a resident
- Third-party injuries (vendors, visitors, etc.)
- Employee injuries
- Property damage
These are just a handful of the types of liabilities that a nursing home has to contend with. In the event that an incident arises, you could be looking at a serious financial crisis.
For example, if a client files a lawsuit against your facility on the allegations of mistreatment, you could end up having to deal with legal costs, crisis management to undo any damage to your reputation, and settlement fees that you might have to pay if you are found liable.
With the right type of skilled nursing facility liability insurance coverage, however, you can protect yourself from financial devastation.
What Type Of Insurance Do Nursing Homes Need?
So, what type of insurance coverage should a skilled nursing facility carry? Here are a few vital policies that you should invest in:
Commercial General Liability: This type of policy will safeguard you from third-party accidents, injuries, and lawsuits.
For example, if a third-party is visiting a loved one at your facility trips over an extension cord that is not clearly marked on the floor and he or she sustains an injury, your commercial generally liability coverage would help to pay for the necessary medical care that the individual would require, as well as any legal feeds that may arise.
Commercial Property: Just like any type of business, there's a chance that your nursing home could be damaged. A tree could fall on top of the building, a fire could break out, or someone could vandalize your facility, for example.
Commercial property insurance would cover the cost of repairing your facility, and would repair or replace any of the contents inside the facility that were damaged.
Professional Liability: As a skilled nursing facility, employees work directly with patients to provide them with the care that they need. Should a nurse administer the wrong medication, or if any employee intentionally harms a resident, you could be looking at a serious lawsuit.
Professional liability insurance provides coverage for issues like neglect and errors that end up harming your patients.
Workers Compensation: Depending on where the facility is located, you will likely be legally required to carry workers' comp coverage. This type of insurance is mandatory in most states, and it protects employees in the event that they suffer a work-related injury or illness.
Workers comp insurance covers the medical bills, lost wages, and lawsuits that could be associated with an employee-related incident.
Nursing Home's Risks & Exposures
Premises liability exposure is extensive due to the large number of visitors to the premises and the impaired physical mobility of patients. Public and life safety code compliance is very important. Excellent housekeeping is required to reduce the number of trips, slips, and falls.
Spills must be cleaned up promptly. Hallways, rooms, and recreational areas must be orderly and well maintained. Stairways, elevators, railings, and floor coverings should be in good condition. Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage. Steps must have rails, be illuminated, marked, and in good maintenance and repair.
There should be a temperature-monitoring device in all bathing and showering areas to prevent scalding. Parking lots should be maintained free of ice and snow. A major concern in the area of patient safety is the type of backup facilities available for power outages and loss of normal utilities. Emergency evacuation procedures are important and should be reviewed on a regular basis. Emergency generators should be in place, checked and maintained periodically.
Should an emergency situation arise, there should be evacuation plans in place to quickly move patients to a safe area. Security at the facility, as well as in the building, corridors, and any owned parking area needs to be carefully checked and reviewed, as the facility may be held liable should a patient or visitor be attacked on the premises. Personal injury exposures include discrimination, invasion of privacy, and wrongful eviction. Having the right skilled nursing facility liability insurance is very important here.
Maintaining a patient's privacy is critical. Examination rooms, check-in and checkout stations must be in private areas so one patient cannot view information or overhear conversations regarding another patient's confidential information. Inappropriate touching and sexual misconduct must be considered. Background checks should be conducted before hiring any employee.
The nursing home should be accredited and operate within the guidelines of that accreditation. If it is on probation, there should be active plans to comply with open recommendations to be taken off probationary status.
Environmental impairment exposure is significant due to the potential for contaminating the air, ground, or water supply by improperly disposing of medical waste, including contaminants such as hepatitis B or the AIDS virus. Disposal must be documented and meet all FDA and EPA standards.
Professional liability, medical malpractice, and directors and officers exposures are high. Staff turnover is high, disrupting continuity in patient care. The exposure increases if the facility fails to conduct thorough background checks to verify employees' credentials, education, and licensing. Nursing homes should be subject to regular inspections by their accreditation organization. It should also be licensed and staffed based on federal and state requirements.
The staff/patient ratio should be sufficient to provide adequate care for patients. Supervision is essential along with regular training, monitoring, and well-written and followed procedures. Patients must be informed of their rights to obtain or refuse medical care as described by state and federal law. Very serious losses may result from failure to secure patient approval before performing procedures.
Access to patients' records must be restricted to those having a legitimate reason for viewing them. Patients' records must be duplicated and stored off-site. Both on-site and off-site records must be safeguarded to protect patients' right to privacy. Patient plans should be in place and followed by all staff members. Only patients who are within the appropriate level of care within the nursing home's license should be admitted and allowed to remain in the facility.
There should be a formal review process in place for reviewing all incidents that may give rise to a claim of medical malpractice. Access to all pharmaceuticals must be carefully controlled, with procedures in place for the proper dispensation to patients. Finally, inappropriate touching and sexual misconduct must be considered. Having the best fit skilled nursing facility liability insurance is vital.
Workers compensation exposure comes from contact with patients, from infections, and from communicable diseases such as hepatitis, HIV, AIDS, or MRSA. Employees should have access to vaccinations to prevent diseases. Gloves and masks should be worn at all times when working around any bodily fluids. All CDC recommended procedures for handling bodily fluids must be followed.
Constant cleansing with disinfectants can result in lung, eye or skin irritations, and reactions. Accidental piercings from needles are common. Back injuries, sprains, and strains can occur when assisting or lifting patients. Procedures should be in place for safely handling unruly or violent patients to minimize injury to both the patient and the employees.
Slips and falls can occur from tripping over objects or slick floors. Kitchen work includes the possibility of cuts, scrapes, and burns. Since patient information and billings are done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Property exposure can be extensive. Ignition sources include electrical wiring, heating, and air conditioning systems, laundry equipment, and cooking appliances. All electrical wiring must be up to code and equipment properly maintained. Smoke detectors should be installed in all patient rooms and common areas.
If the nursing home has been converted from other occupancies, it must meet current codes for its current occupancy, including electrical wiring, heating, and plumbing systems. If flammable gases such as oxygen are used on premises for patient care, adequate controls must be in place for patient safety. Smoking must not be permitted on premises. All kitchen grills and deep fat fryers must have fire extinguishing protection, hoods, and filters. There should be an automatic fuel shut off valves and adequate hand-held fire extinguishers.
Theft is a concern, as large quantities of drugs may be stored on premises. Tight controls must be in place including, but not limited to, inventory control and limited access to the drug room. Business income and extra expense losses can be severe due to the cost of equipment, the time it may take to repair or replace a damaged item, and unavailability of backup facilities.
Equipment breakdown exposures are high as operations are dependent on medical equipment being available and the property meeting requirements for elderly or disabled occupancy. All equipment should be maintained on an ongoing basis.
Crime exposure is from employee dishonesty and money and securities. The potential for theft, directly or by means of identity theft, is great. Pre-employment checks, including criminal background checks, should be required of any employee with access to drugs or money. Inventory must be reviewed regularly and the drug areas must have limited access. Regular monitoring with cameras can be helpful in deterring employee theft and monitoring patient treatment.
All ordering, billing, and disbursements must be handled as separate duties. Regular audits must be conducted. Money and securities can be a concern if payments are accepted on premises. Deposits should be made regularly and no money kept on premises overnight. Patients' property may be stolen by employees.
Inland marine exposure comes from accounts receivables for billings, computers, medical equipment, and valuable papers and records for employees', patients', and vendors' information. Most medical equipment is now run by computers and should be covered on a computer form. Some medical equipment may be shared with other facilities or be kept in mobile care units, requiring separate coverage as it is transported between locations.
Equipment in transit must be adequately secured to prevent movement during transit. Duplicates should be made and kept off site. Some homes may have extensive fine arts and statuary that should be covered under a fine arts coverage form. There may be a bailees exposure if the nursing home takes custody of the goods of patients, such as cleaning wigs or doing dry cleaning or laundry.
Commercial auto exposure is high if there is any transport of patients as some may have limited mobility. If there are owned vehicles, all drivers should be licensed with acceptable MVRs. Vehicle maintenance should be ongoing and documented in a central location. Any transport for non-ambulatory patients must include supervision.
What Does Skilled Nursing Facility Liability Insurance Cover & Pay For?
Skilled Nursing Facilities (SNFs) can be sued for various reasons, and appropriate insurance policies can help protect them from the financial consequences of lawsuits. Here are some common reasons for lawsuits against SNFs and how insurance can help:
Negligence: SNFs may be sued for negligence if they fail to provide an adequate standard of care, resulting in injury or harm to residents. Professional liability insurance, also known as malpractice insurance, can help cover the costs of defending against negligence claims and any settlements or judgments awarded.
Abuse or neglect: SNFs can face lawsuits if their staff members are accused of abusing or neglecting residents. General liability insurance can help cover costs related to these claims, including legal defense and potential settlements or judgments.
Medication errors: Lawsuits may arise if SNFs make errors in administering medications, leading to adverse reactions or other health issues for residents. Professional liability insurance can help cover the costs of defending against these claims and any settlements or judgments awarded.
Slip and fall accidents: If a resident or visitor suffers an injury from a slip and fall accident on the premises, the SNF may be sued for premises liability. General liability insurance can help cover legal defense costs, settlements, and judgments related to these claims.
Breach of contract: SNFs can be sued for breach of contract if they fail to provide the services promised in their contracts with residents or their families. Commercial general liability insurance may cover legal defense costs, settlements, and judgments related to these claims.
Employment-related issues: SNFs can be sued for issues related to employment, such as discrimination, harassment, or wrongful termination. Employment practices liability insurance (EPLI) can help cover the costs of defending against these claims and any settlements or judgments awarded.
Violation of privacy: Lawsuits may arise if SNFs fail to protect residents' personal or medical information, resulting in a privacy breach. Cyber liability insurance can help cover the costs of defending against privacy-related claims, as well as any settlements, judgments, or fines.
By having the appropriate insurance policies in place, SNFs can protect themselves from the financial consequences of lawsuits, ensuring they can continue to provide care for their residents. However, it is essential for SNFs to prioritize the quality of care, staff training, and adherence to regulations to minimize the risk of lawsuits in the first place.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8051 Nursing Homes - Skilled, 8052 Nursing Homes - Intermediate Care, 8059 Nursing and Personal Care Facilities, Not Elsewhere Classified
- NAICS CODE: 623110 Nursing Care Facilities (Skilled Nursing Facilities)
- Suggested Workers Compensation Code(s): 8829 Nursing or Convalescent Home - All Employees
8051: Nursing Homes - Skilled
Division I: Services | Major Group 80: Health Services | Industry Group 805: Nursing And Personal Care Facilities
8051 Nursing Homes - Skilled: Establishments primarily engaged in providing inpatient nursing and rehabilitative services to patients who require continuous health care, but not hospital services. Care must be ordered by and under the direction of a physician. The staff must include a licensed nurse on duty continuously with a minimum of one full-time registered nurse on duty during each day shift. Included are establishments certified to deliver skilled nursing care under the Medicare and Medicaid programs.
- Convalescent homes with continuous nursing care
- Extended care facilities
- Mental retardation hospitals
- Nursing homes, skilled
8052: Nursing Homes - Intermediate Care
Division I: Services | Major Group 80: Health Services | Industry Group 805: Nursing And Personal Care Facilities
8052 Nursing Homes - Intermediate Care: Establishments primarily engaged in providing inpatient nursing and rehabilitative services, but not on a continuous basis. Staffing must include 24-hour per day personnel with a licensed nurse on duty full-time during each day shift. At least once a week, consultation from a registered nurse on the delivery of care is required. Included are facilities certified to deliver intermediate care under the Medicaid program.
- Intermediate care facilities
- Nursing homes, intermediate care
8059: Nursing Homes Nursing and Personal Care Facilities, Not Elsewhere Classified
Division I: Services | Major Group 80: Health Services | Industry Group 805: Nursing And Personal Care Facilities
8059 Nursing Homes Nursing and Personal Care Facilities, Not Elsewhere Classified: Establishments primarily engaged in providing some nursing and/or health-related care to patients who do not require the degree of care and treatment that a skilled or intermediate care facility is designed to provide. Patients in these facilities, because of their mental or physical condition, require some nursing care, including the administering of medications and treatments or the supervision of self-administered medications in accordance with a physician's orders. Establishments primarily engaged in providing day-to-day personal care without supervision of the delivery of health services prescribed by a physician are classified in Industry 8361.
- Convalescent homes for psychiatric patients, with health care
- Convalescent homes with health care
- Domiciliary care with health care
- Homes for the mentally retarded with health care, except skilled and
- Nursing homes except skilled and intermediate care facilities
- Personal care facilities with health care
- Personal care homes with health care
- Psychiatric patient's convalescent homes
- Rest homes with health care
Skilled Nursing Facility Insurance - The Bottom Line
To find out more about what type of insurance policies nursing homes should carry, how much coverage you need, and if there is a specialized policy that is designed specifically for skilled nursing facilities (SNFs), speak with a reputable commercial insurance broker.
Additional Resources For Health & Beauty Insurance
Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.
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- Specialty Medical Malpractice
The medical industry is a crucial sector that plays a vital role in ensuring the health and well-being of individuals. It is a complex and highly regulated industry that requires specialized knowledge and expertise. As a result, the medical industry is exposed to a variety of risks, including legal and financial liabilities.
One of the main reasons why the medical industry needs commercial insurance is to protect against medical malpractice. Medical malpractice occurs when a healthcare provider deviates from the standard of care and causes harm to a patient. It can lead to costly lawsuits and significant financial losses for the healthcare provider. Business insurance helps to cover these costs and protect the financial stability of the medical facility.
Another reason the medical industry needs business insurance is to cover the cost of regulatory fines and penalties. The medical industry is subject to strict regulations and any violations can result in significant fines and penalties. Business insurance helps to cover these costs and protect the financial stability of the medical practice or facility.
In addition, the medical industry is vulnerable to data breaches and cyber attacks. These incidents can result in significant financial losses and reputational damage for the medical facility. Business insurance helps to cover the cost of recovering from a data breach or cyber attack and helps to protect the reputation of the medical facility or practice.
Overall, business malpractice insurance is an essential component of the medical industry. It helps to protect against the financial and reputational risks associated with the medical industry and helps to ensure the financial stability and success of medical practices and facilities.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Physicians and Surgeons Floater, Valuable Papers and Records, General Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage and Stop Gap Liability.