General and Professional Liability Coverage Solution for Long Term Care Facilities:
A Closer Look at Risk Retention Groups
We’re all getting old! While we are mulling over our “refinement” process, many will be faced with the topic of how to care for aging and/or disabled loved ones. This may be a daunting task. Not because of the person receiving the care, but the difficulty in selecting the best way to do so. There are varying types of long term care facilities offering a wide spectrum of medical and non-medical services. Regulation for long term care is much like the wild west. There’s no uniformity in the governance and standards from one state to the next. Despite all these intricacies, the objective is to secure the best place for your loved one. This should also be the goal of the facility owners in the industry.
The Long-Term Care industry, much like the healthcare industry at large, is constantly under scrutiny. This faction of the industry possibly has largest margin of loss. That may be attributed to any number of things ranging for the quality of staff, type of resident services, facility management practices, physical conditions of the facility and everything in between. Many of these operations are small which may mean, small revenue capacity with large exposure for loss. For these reasons, it’s imperative that facility owners protect themselves, their staff and their operation with the right coverage.
Standard coverage options for the healthcare and the long-term care sector specifically, is not always easy to come by. Standard carriers often enter and exit this market often and quickly once claims start to rise. This sends many insureds off and packing to the residual markets. Though coverage is available, it’s often at a higher cost and not necessarily designed to address the specific needs of the industry. A fantastic way for these providers to meet their general and professional insurance needs affordably, is through Risk Retention Groups. RRG’s were created for this very reason. They are established as their own insurance companies, by business owners in the industry. Therefore, coverage is controlled by groups that not only understand the industry, but operate in it. They are susceptible to the same loss exposures as the insureds therefore creating a vested interest that goes beyond profit. RRGs in this space are often connected to the professional associations governing these operations. This provides for a wholistic approach to providing coverage.
Caring for humans is a significant role. The providers of that care are taking a significant risk to offer those services. Managing the associated risk of operating long-term care facilities can be a mammoth task. When it comes to coverage, it can be like taking medication. It’s best to get something that’s prescribed specifically for your needs rather than the “over the counter” stuff!