Long term care facilities have a long list of responsibilities. One of their biggest responsibilities is caring for the residents, which requires a lot of manpower, time and supplies. These facilities are exposed to a lot of risks, because they are responsible for providing patients around-the-clock care, medications, meals, baths and even social entertainment. With these responsibilities come lots of risks, which is why it is crucial to carry professional liability insurance.
PLI insurance, also known as errors and omissions insurance, is a requirement for all long term care facilities operating in Canada. The amount of coverage will depend on the size of your facility, the number of patients you are permitted to care for and level of exposures.
One of the biggest risks long term care facilities face is negligence. While registered nurses and licensed practical nurses supervise and delegate to CNAs, their job duties are extensive. Of course, they do what they can to make sure their CNAs are doing their job there is always room for negligent behavior. E&O insurance protects long term care facilities from financial loss associated with negligence claims and civil lawsuits.
PLI covers litigation fees and pays part or all monetary judgments and settlements. Without the insurance, your company will be at risk of a major financial loss, which could send you straight to bankruptcy court.
It is also recommended to carry a quality commercial general liability insurance policy. This coverage takes care of all lawsuits brought by third parties, such as customers, patients, vendors, landlords, subcontractors and business partners. Regardless, if the lawsuit is the result of an accident, property damage, reputation damage or copyright infringement, CGL insurance will protect you and your company from major financial loss.
Professional liability insurance quotes for long term care facilities are free and offered by local and online brokers. We recommend a coverage of no less than $1,000,000 for PLI and $2,000,000 for CGL.
Additional Coverage Options
As a long term care facility owner and operator, it is your responsibility to protect your employees and patients in the event a third-party files a negligence claim or civil lawsuit against your company. Even a minor claim can hurt your reputation, but a lawsuit could force you into bankruptcy, especially if you and your company are found liable. Protecting your company full will require additional insurance coverage, which is listed below.
CGL insurance helps those covered under the policy pay for settlements, civil judgments and litigation fees. If one of your patients accidentally slips, falls and sustains a severe hip injury, you are responsible. If the patient or their family files a lawsuit against your company, claiming negligence, you will be forced to cover the patient’s medical expenses, hospital bills and other expenses. Even though you can cover these expenses out-of-pocket, the outcome will not be in your favor.
CGL Insurance Limit Recommendations – $1,000,000 per claim/$2,000,000 aggregate
Commercial Property Insurance
Residents and patients living in long term care facilities need around-the-clock care. These patients rarely leave the facility unless their family takes them on an outing or they are transferred to a hospital for medical treatment. To protect your patients and employees in the event a natural disaster or fire damages your facility, you will need to obtain commercial property insurance.
Commercial Property Insurance Recommendations – $500,000 per claim/$1,000,000 aggregate
Another type of insurance that is recommended for long term care facilities in malpractice insurance. This coverage helps pay for claims and civil lawsuits related to sub-par medical conduct, sexual abuse, employee disputes, and accusations of criminal behavior.
Malpractice Insurance Limit Recommendations – $1,000,000 per claim/$2,000,000 aggregate
Employee Dishonesty Insurance
As an owner of a long term care facility, you will be responsible for a lot of employees. While you want to believe your employees are honest and trustworthy, this is not always the case. This insurance will cover third-party claims related to employee theft, embezzlement and fraud.
Employee Dishonesty Insurance Limit Recommendations – $100,000 per claim/$500,000 aggregate
The cost of insurance coverage will vary depending on the amount of coverage, risks, number of patients you care for, number of employees and the size of your facility.
- Professional Liability Insurance – $100 to $150 per month
- Commercial General Liability Insurance – $70 per month, depending on the coverage amount
- Malpractice Insurance – $40 per month, depending on the coverage
Please feel free to contact our office for your free insurance quote today. An agent will work to provide you with a quote the same day of your request.
Other professions we also provide insurance for: