Top 10 Care Home Insurance Cover Mistakes

We have put together the Top 10 Mistakes that are made when taking out Care Home Insurance Cover. Don't get caught out!

1. Failing to spot the difference between ‘claims occurring’ and ‘claims made’. ‘Claims made’ policies only  cover claims made while the policy is still active, whereas ‘claims occurring’ policies will provide cover for incidents occurring during the life of the policy, even after the policy has expired. Don’t be left in a situation where a claim isn’t covered  because it happened  before your current (claims occurring) policy was taken out but after your previous (claims made) insurance expired.
2. Not asking first – the majority of legal expenses policies operate on a “seek and obey” basis. This means you should contact your insurer before making a decision that could involve legal fees. Such decisions could include; disciplinary procedures, complaint handling and issues with payments.
3. Not taking emergency measures – a prudent insurer will have no problem if you take emergency action to prevent a situation from worsening, ie, using an emergency plumber to stop a leak or boarding up a broken door or window.
4. Failing to check policy conditions and warranties – Insurers apply their own conditions and warranties to a policy, examples include electrical installation inspections, kitchen ducting cleaning, flat roof inspections, as well as the statutory obligations of the CQC, HSE etc.  
5. Failing to report building works – your insurers will be paying to rebuild your property if something goes wrong with building work, so they need to know about the work you are planning, particularly, if this requires areas to be cordoned off for a prolonged period. General redecoration is not normally notifiable.
6. Insufficient turnover projection – as the name suggests, you should base your cover on future, not previous/current turnover levels – particularly If you have plans to expand or increase fees in the next 12-24 months.
7. Underinsure your contents – most insurances provide cover on a new-for-old basis; therefore, it’s important that you use the ‘new’ replacement value when calculating the cover you need. For multiple rooms, take the average contents value of a resident’s room and multiply this by the number of your rooms. Don’t forget communal and staff areas, including the whitegoods!
8. Underinsure your buildings – buildings insurance usually needs to cover the reinstatement cost of the property: the cost of demolition and rebuilding from scratch, as well as the associated professional fees (architects, solicitors etc.). Most policies apply an ‘average’ to claims where the sums insured are too low, which will act to reduce your claim in proportion to the amount that you’re underinsured. To avoid problems, ask for a reinstatement cost report from a professional surveyor, at least every five years.
9. Opt for specialist rather than local - care is a specialist market and should be dealt with by a specialist who understands the requirements of your organisation.
10. Ignore good housekeeping – requests by an insurer to store data back-up off-site, install a lockable cabinet for keys and reduce cash holdings should be considered good practice rather than an obstacle to putting cover in place.

Speak with us today on 01273 424904 if you have any questions regarding your Insurance!