According to a recent report published by The Population Reference Bureau, there will be over 98 million Americans age 65+ by 2060. And, along with the fast aging American population, assisted living facilities are bursting in cities across the nation. Let’s face it, the tradition of taking care of your elderly parents is becoming extinct and expecting millennial children to take care of you isn’t even an option.
Long-term care facilities, or senior assisted living facilities, require adequate coverage as they are exposed to a variety of risks working with the elderly.
They need to protect themselves with professional liability of this growing market segment. The biggest claims come from falls resulting in broken bones and bedsores for lack of movement or not being positioned correctly. Another serious exposure is called “elopement” or when a resident wanders off unattended. This sometimes results in falls, serious injury or even death. The elopement related insurance claims are one of the costliest professional liability claims associated with assisted living facilities. These can be very expensive if not properly insured.
Because of the variety of risks faced by senior assisted living facilities, more markets are pulling out and rates are increasing steadily. Long term care markets are toughening, although professional liability, as it relates to malpractice, remains soft.
Strike While the Iron is Hot
The flood of senior assisted living facilities opening nationwide has created a great opportunity for brokers and agents looking to enter this field. Despite contested market conditions, they still can advise clients on insurance offerings and requirements to meet the exposure needs. Nonetheless, knowing what markets are writing for long-term care and being familiar with what’s being offered is imperative before entering this space.