ALFs have a lot to consider when they’re electing insurance coverage options. Their activities tend to involve substantial risk, so they need to protect themselves accordingly.
Liability Insurance Policies
Some of the most important ALF insurance requirements are those that address any potential liability to third parties. A claim made against a facility could involve sizable damages. It may be necessary to carry several forms of liability policies.
- Professional liability
- General liability
- Cyber liability
- Directors and officers insurance
- Automobile collision insurance
- Protection for medical directors while acting within the scope of their administrative duties
Property Insurance Policies
An ALF needs to be insured for damage on its premises. A property insurance policy can cover damage to real property or personal property. Damage could be caused by many types of incidents such as a weather event, fire, or vandalism. It may be necessary to obtain a separate line of insurance to cover special equipment such as a boiler or machinery.
A comprehensive commercial insurance package is an integral part of an ALF’s risk management plan. A facility’s needs will depend on the value of its assets and the scope of services provided to residents. It is wise to work with an insurance company that is experienced in serving ALF clients and can advise them about individual policy elections.