WARREN, N.J.--(BUSINESS WIRE)--For the very first time, original research has been conducted on the latest insurance trends within the senior living industry. This resulting report concludes that Directors & Officers Liability (D&O) and data breach insurance are the top concerns of senior housing investors and owners. Across the board, industry leaders in senior living have grown more cautious in their coverage options and levels as a result of being more prone to loss than many other industries. The trends identified in this report will help industry professionals, including insurance agencies at healthcare practice groups, learn best practices in purchase limits, peer deductibles, and loss trends.
That's one of the findings in the data from the 2015 Management Liability Purchasing Trends For Senior Living Communities, a survey conducted by Professional Risk Solutions. The report compiled insurance related statistical data from 353 communities that posted total combined assets of $7.8 billion, with 90 percent of them classified as non-profit corporations. The report covered a wide range of senior living models, such as Assisted Living Facilities, Skilled Nursing, Continuing Care Retirement Communities, Nursing Services and Home Health Care enterprises.
Some of the key findings for senior living D&O purchasing trends include the following:
- 32 percent of those insured in the report purchase $1,000,000 shared limits for D&O and Employment Practices Liability (EPL), while close to 33 percent purchase $5,000,000 in shared limits for D&O and EPL. (Asset size of the insured is the primary factor for purchasing higher limit.)
- 95% of the claims paid under the combo D&O/EPLI policy form are employment practice claims.
- Amongst those insured with paid claims, the average claims total was $68,495 (Defense and Settlement).
In reviewing the results of his company's survey, De'Andre Salter, founder and CEO of Professional Risk Solutions commented, "Recent economic conditions have challenged some communities to operate with a great deal more attention to their risk exposure. They have become more fragile as revenues have dwindled and investment capital evaporates, which is perhaps the primary reason for the increase in bankruptcy filings."
The growing importance of greater coverage represents a fundamental shift in operational focus overall from cost reduction to risk protection. Salter warned, "In this environment, the burden and cost of defending lawsuits and data breaches could easily become the final catalyst for bankruptcy of the organization."
A full copy of the 2015 Management Liability Purchasing Trends For Senior Living Communities can be downloaded from the Professional Risk Solutions website.
