Regarding Skilled Nursing Facilities/Adult Assisted living Centers
Because the premiums are still varying wildly, it is important to thoroughly present this exposure to the markets specializing in this type of professional and general liability insurance.
Evidence suggests that our nation’s demographics demand these centers evolve, grow and provide the same services available at a hospital.
Rates are increasing in Assisted Living Facilities:
According to American Health Care Association, Professional Liability costs are on the rise for long term care facilities, finds AHCA and Aon. In the medical malpractice insurance market, physician premiums have remained stable in spite of an average in claims of 5 % per year.
“Across the country, long term care and post-acute care centers provide care for 1.1 million frail and elderly and employ more than 1.5 million people. Rising liability costs drive up the cost of doing business and not only threaten access to care but could ultimately cost jobs,” said Mark Parkinson, President & CEO of AHCA.
The 2013 Long Term Care General Liability and Professional Liability Actuarial Analysis provides estimates of loss rates, or the cost of liability to the beds that care providers operate. The projected national 2014 loss rate, which is a combination of claim severity and frequency, is $1,940 per occupied bed. This means that an operator with 100 beds can expect $194,000 in liability expenses in 2014. (source AHCA)