We are often asked what insurance Domiciliary Care and Supported Living Services require? Here, we address eight specific areas you should consider when arranging insurance for Domiciliary Care providers or care home insurance. Whilst there are other additional insurances that may apply to your organisation, these provide a solid starting point.
1. Employers’ Liability Insurance
Employers’ Liability insurance is required by Law (Employers’ Liability (Compulsory Insurance) Act 1969). It covers you (the owner of the company) against any legal action from your employees in respect of an accident or injury suffered while at work. Should an employee launch a compensation claim, for example, for a back injury incurred while moving a service user, you would be able to make a claim (subject to the policy’s T&Cs). This will cover defence costs as well as any potential compensation.
2. Public Liability Insurance
Public Liability insurance covers you for action taken against you by a Third Party. This could be a service user injuring themselves or having an accident while in your care, for example. Public Liability insurance will cover your defence costs and any potential compensation if a claim is successfully instructed against the company.
3. Medical Malpractice/Treatment Liability Insurance
Medical Malpractice is a legal cause of action that occurs when a medical or health care professional, through a negligent act or omission, deviates from standards in their profession, thereby causing injury to a patient. This could be, for example, a failure to administer or prompt the use of drugs.
4. Professional Indemnity Insurance
Professional Indemnity insurance pays your legal costs, as well as any compensation payments that may be due, if your client takes legal action against you for a mistake you have made when providing professional services or advice to them. Dependent on policy coverage, this can also extend to cover claims in respect of Medical Malpractice.
5. Legal Expenses
There is a wide range of services covered under a Legal Expenses Insurance Policy; this includes coverage in respect of Employment Disputes and Tax Investigations. It is extremely important to understand the conditions applicable to a legal expenses policy, such as the prospect of success clause and advice precedent clauses, which your broker should explain prior to cover being incepted.
6. Buildings & Contents Insurance
Substantial money can be spent on assets, so it is important you have the correct Buildings & Contents insurance coverage in place to protect these. Buildings owned by the company should be insured for the rebuild costs and contents, computer equipment and other general contents for their reinstatement value. Failure to insure for the correct levels can result in underinsurance, and therefore the ‘condition of average’ applying in the event of a claim.
For example, if a policy is covering a building with a sum insured of £80,000 noted, and at the time of a loss the real insurance value is £100,000, the insurer would be able to apply to condition of average, whereby the pay out value would be reduced by the same proportion as the underinsurance, i.e. the claim pay out could be reduced to 80% of the initial claim value.
7. Cyber Insurance
As the world has evolved, general insurance policies have not adapted to include cyber threats. Cyber Insurance policies are therefore available and can have various sections of cover; Cyber Liability can protect you in respect of a data breach and third-party claims against the company, whereas Cyber Crime cover can protect theft of monies from the company. There are also extensions available for Business Interruption and System Restoration in the event of cyberattacks.
Given the amount of personal and sensitive data care organisations naturally hold to effectively support service users, cyber insurance is a key cover to consider and one we would highly recommend.
8. Directors & Officers Insurance
Directors and Officers insurance policies offer liability cover for company directors, managers and even employees, to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties.
Any allegations of wrongdoing naturally need to be investigated and defended, and this can cost a significant amount, even if the case does not reach court. This means directors’ and officers’ personal finances are at risk, so it’s essential that companies provide protection through an insurance policy.
How McClarrons can help arrange insurance for Domiciliary Care & Supported Living Services
There are many different elements of insurance for Domiciliary Care & Supported Living Services, therefore it is important to use a broker that understands your sector.
We have a dedicated care & social welfare insurance team who understand the work of Domiciliary Care & Supported Living Services and who can provide you with a complimentary insurance review. We can discuss your specific activities and requirements and provide a policy tailored to your needs.
We have access to many specialist care provider insurers, allowing us to provide cover for your organisation’s individual needs and, should the worst happen, we have an in-house claims team who manage our clients’ claims from start to final settlement.
If you would like some more information or would like to take advantage of a complimentary insurance review, please email care@mcclarroninsurance.com or call our Care Team on 01653 600477.
