Liability Insurance for Long Term Care Facilities

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 coverage in your Ontario, Canada business insurance policy.

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.

business insurance for long term care facilities

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.

Commercial General Liability Insurance

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

Malpractice Insurance

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

long term care business insurance
Average Costs

The cost of business 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 a free insurance quote for your business. An agent will work to provide you with a quote the same day of your request.

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Other professions we also provide insurance for:

Academic Testing Centres
Accident Investigation
Accident Prevention Consultants
Adoption Agencies
Advertising Agencies
Advertising Agents & Services
Aerial Mappers
Alarm Monitoring Services
Allied Health Professionals
Alternative Dispute Resolution Firms
Alternative Energy
Answering Services
Arbitrators & Mediators
Arborists / Tree Surgeons
Architects & Engineers
Architectural technicians and technologists
Auctioneers, Auction Houses
Blueprint & Photocopy
Boat Registrars
Building Designers(Bill 124)
Business Brokers/Managers
Business Consultant
Business Enterprise Agencies
Business Training Courses
Cabling Designers
Camera & Photo Supply Stores
Careers Advisory Service
Catering Consultancy
Cereal Growing Advisors
Chambers of Commerce & Trade
Civil engineers
Claims Adjusters & Administrators
Collection Agencies
Commercial Printer
Communication Consultants
Company Formation
Company Search Agency
Conference & Event Management
Conference Facilities & Services
Conservation Consultants
Conservation Organizations
Consumer Organisations
Contest Managers
Contractors Accountants
Convention Planners
Counselling & Advice Services
Court Reporters
Credit Reference Services/Bureaus
Custom House Broker
Customs & Forwarding Agents
Data Processing Services
Database Managers
Day Spas
Decorators – Interior
Dental Laboratories
Dieticians (Consulting)
Directors and Officers
Documentary creators
Employment Agencies
Employment Agencies/Recruiters
Employment Placement Agencies
Energy Audits & Assessments
Environmental Engineers
Event Planners
Excess & Umbrella Liability
Fitness Clubs
Foreign Legal Consultants
Holistic Professional
Home inspectors insurance
Immigration Consultants
Independent Contractor
Industrial Designers
Information Technology
Interior Designers
IT Contractor
IT Specialist/Technician/Programmer
Lawyer’s Excess Professional Liability
Long Term Care
Management Consultants
Medical Clinics
Medical Devices
Medical Professionals (Malpractice Insurance)
Medical Related
Medical Student Malpractice Insurance
Mortgage Brokers
Multimedia designers
New Media
Occupational Health and Safety Consultants
Placement Agencies
Private Investigators
Process Servers
Product Designers
Professional Entertainers
Professional Organizer
Professionals Liability
Project Managers
Property Managers
Publishers and Printers
Quality Control Consultants
Recruitment and Employment Agency
Recruitment Consultants
Research & Development
Roofing Consultants
Safety Engineers
Service Organizations
Solar & Wind Farm Engineers & Consultants
Spa Package
Structural Engineers
Tax Prepares
Technology Companies
Therapist Professionals
Town / Urban Planners
Training Providers/Trainers
Translators etc.
Travel Agencies
Travel Agents
Travel Agents, Tour operators
Web Designers
Web-Site Designers
Workplace Engineers & Consultants