Care Home Insurance

Care homes generally require a comprehensive package of policies, which typically includes:

• Employers’ Liability Insurance: Legally required to protect staff against workplace injury or illness claims.
• Public Liability Insurance: Can cover claims made by residents, visitors, or third parties for injury or property damage.
• Medical Malpractice / Professional Indemnity Insurance: Helps protect against claims alleging professional negligence, malpractice, or errors in resident care.
• Buildings & Contents Insurance: Safeguards the physical property, furnishings, and resident belongings against damage or loss.
• Business Interruption Insurance: Helps covers financial losses if the care home is unable to operate due to an insured event (e.g. a fire or flood).

Requirements will vary and it’s always best to speak with a specialist care home insurance broker or provider.

Care home insurance is a specialised commercial insurance package tailored to protect residential care facilities, nursing homes, and assisted living providers. It should cover the unique risks associated with running a care facility, blending standard business protections (like property and public liability) with sector-specific safeguards (like medical malpractice and residents insurance for personal belongings).

Care homes face a potentially high volume of unique daily risks. Insurance is essential to help:

• Safeguard against costly liability claims and lawsuits
• Protect physical property and specialised equipment from damage or loss
• Support financial security following employee injuries or resident care disputes
• Maintain regulatory compliance and meet legal mandates (such as holding Employers’ Liability insurance)

A standard care home insurance policy typically covers:

• Public liability
• Employers’ liability
• Medical malpractice and professional indemnity
• Buildings, contents, and specialist care equipment
• Business interruption and loss of revenue
• Legal expenses

Policies can be tailored to meet specific needs.

Insurers determine premiums based on several core risk factors, including (but not limited to):

• Size and capacity: The number of beds and scale of the facility
• Location: Local environmental risks, crime rates, and regional claim trends
• Staffing levels: Total number of employees and use of agency staff
• Services provided: Specialised care types (e.g. dementia care, nursing, or learning disabilities)
• Claims history: The organisation’s previous loss and claims record
• Coverage limits: The level of indemnity and policy deductibles chosen

Certain elements of care home insurance are legally mandatory, while others are important for business security and peace of mind:

• Employers’ Liability Insurance is a legal requirement in the UK for businesses employing staff.
• While comprehensive care home insurance packages as a whole may not be entirely required by law, they are strictly required by industry regulators (such as the CQC) and local authorities.

Public liability insurance for care homes can cover legal defence costs and compensation payouts if a resident, visitor, or third party suffers an injury or property damage linked to the care home’s operations, premises, or staff negligence. It is therefore considered a fundamental component of any care facility risk management strategy.

If you need to make a claim on your care home policy:

1. Contact your insurer or broker immediately to report the incident.
2. Gather supporting documentation, including incident reports, photographs, witness statements, and correspondence.
3. Follow your broker or insurer’s specific claims process closely to avoid delays.

As a McClarrons client, our specialist in-house claims team will be able to support and assist you throughout the process.