.jpg)
.jpg)
In the world of insurance, every detail matters. When providing care, your focus is always on delivering the best possible support for your residents and service users, so it’s easy to see insurance as a necessary, albeit complex, part of operations. However, one area that can’t be overlooked is the importance of accurate declarations. Ensuring that your declarations are not only complete but also precise is essential for securing reliable coverage and avoiding potential pitfalls that could compromise the protection of your business.
In insurance, a "declaration" refers to the information provided by the insured party (in this case, the care provider) regarding their operations, exposures, and specific needs. This information allows insurers to assess risk and determine the appropriate coverage and premium. It’s the foundation upon which your insurance policy is built. When declarations are inaccurate or incomplete, the consequences can be severe, often resulting in denied claims, increased premiums, or even policy cancellation.
Consider declarations as a transparent agreement between the insurer and insured: it’s where the care provider lays out the specifics of their operations, and the insurer tailors coverage to fit those specific risks.
Despite the importance of declarations, many providers struggle with accurately communicating the scope and specifics of their business to insurers. Below are some of the most common declaration oversights, along with the potential consequences:
Underestimating Staff Numbers or Qualifications
If staff numbers or qualifications are inaccurately reported, it can lead to claims being denied or premiums being adjusted upward during a policy term. Insurers rely on this data to assess the level of risk associated with staff activities and care levels. Misreporting can lead to issues in claim settlements, particularly if incidents arise that could have been better covered with accurate data.
Care providers sometimes fail to fully disclose all care activities, particularly when there’s a range of services (e.g., nursing, dementia care, or physical therapy). Misrepresenting or omitting these details can impact coverage; specific activities may require additional coverage or specialised policies. Failure to declare these services can mean uncovered liabilities if an incident occurs.
Properties where care is provided are fundamental to insurance policies. Inaccurate information about property features, location, or security measures can lead to inadequate property insurance coverage. Ensuring all physical assets are correctly reported, including any additions or renovations, will help maintain full protection against property-related claims.
The care industry is dynamic, with regulations, care standards, and internal practices constantly evolving. If a care provider fails to update their insurer about significant changes in operations, they risk becoming underinsured or, worse, nullifying their policy. Regularly reviewing and updating your declarations ensures that your coverage remains valid and sufficient.
Ensuring the accuracy of your declarations might seem daunting, but following a few structured steps can simplify the process:
1. Conduct Regular Reviews of Your Operations
At least once a year, conduct a comprehensive review of your operations to capture any changes that might impact your insurance needs. This includes staff changes, new service offerings, and updates to your facilities.
2. Work Closely with Your Insurance Provider
Your insurance provider is there to help guide you through the declaration process. Working with a broker who understands the care sector is especially beneficial; they can highlight the details insurers prioritise and ensure you’re covered on all fronts.
3. Involve Key Stakeholders in the Declaration Process
Often, inaccuracies arise because the declarations were prepared without input from the team members directly involved in day-to-day operations. Include stakeholders from HR, facilities, and finance in the process to ensure all areas of your organisation are accurately represented.
4. Be Proactive in Reporting Changes
The responsibility to report changes lies with the policyholder. Keep an open line of communication with your insurance provider and proactively report changes in your operations. This includes everything from staff qualifications to property upgrades or new service offerings.
5. Double-Check Your Policy at Renewal
Insurance policies are typically renewed on an annual basis, providing a natural opportunity to review and verify your declarations. Taking the time to revisit each detail ensures that your coverage aligns with the current state of your organisation.
In the care industry, maintaining trust and continuity is critical. Accurate insurance declarations ensure that you’re not only complying with legal and regulatory standards but also protecting your business, staff, and clients. When a claim does arise, you can rest assured that your policy will respond as intended, without the risk of disputes over undeclared details.
Ultimately, accurate declarations reflect a proactive approach to risk management. At Quality Care Group, we’re here to support care providers with navigating the complexities of insurance to ensure that their policies truly reflect their operations and needs. If you have questions about your current declarations or want to discuss your coverage, feel free to reach out to our team for expert advice tailored to the care sector.
If you have any questions about the, or anything else to do with your care home insurance, domiciliary care business insurance or general insurance policy, please do not hesitate to contact myself, or a member of the team on 01273 424904.
.png){kind=small}
