Nursing homes and long-term care facilities face an insurance crisis: carriers are exiting the market, premiums have doubled or tripled for facilities with claims history, and abuse and molestation coverage is increasingly difficult to place at any price. The liability environment for nursing homes, driven by plaintiff attorney specialization and nuclear verdicts, has made this one of the hardest classes to insure in the entire commercial market.
For facilities exploring alternative risk structures, options include risk retention groups, captive participation, and self-insured retentions with excess layers. For SBA-financed nursing home properties, hazard insurance must be maintained regardless of the liability market conditions.
Key Takeaways
- Market exit: Multiple carriers have stopped writing nursing home GL and professional liability
- Premium spikes: 100-300% increases at renewal are common for facilities with claims
- Abuse coverage: Increasingly excluded or sublimited, even on available policies
- Alternatives: Risk retention groups, captive programs, and high-SIR structures
- Loss control: Facilities with documented safety programs and low claims get better access to coverage
Disclaimer: This article is for informational purposes only. Consult our licensed advisors for guidance specific to your situation.
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