03 Feb Insurance for Residential Care Facilities
Insurance for Residential Care Facilities
Residential Care Facilities have seen a big increase in demand over the last 20 years. This trend is likely to continue and with this increased demand comes an increased need to be properly insured. We will discuss the important coverages you need to make sure you are on track to have the right coverages.
Insurance for Residential Care Facilities – Workers Comp
Regardless of if you have employees or not, Workers Comp if often a requirement of the State of California if you plan on starting a residential care facility. It is critical to obtain the proper class code for the Workers Comp as this will affect eligibility and premium. Typically Residential Care Facilities’ employees fall under the 9070 class code. Alternatively, if you provide services that include in-home care services, these employees will fall under the 8827 ‘homemaker services’ class code. Again, the correct class code can change the premium significantly.
Insurance for Residential Care Facilities – General Liability
General Liability is a common and important coverage for Residential Care Facilities. For example, if a patient falls and gets injured, it is the General Liability that will protect your business against these types of claims. When shopping for General Liability, make sure you find a carrier that specifically includes coverage for Residential Care operations. The General Liability policies that are designed for Residential Care Facilities will often include additional coverages, sexual and molestation coverage limits and occasionally incidental Professional
Liability coverage as well.
Insurance for Residential Care Facilities – Professional Liability
Depending on your business operations, you should consider pursuing a Professional Liability policy. Professional Liability provides coverages for advice, consulting, or professional services your business may offer. If your Residential Care Facility offers medical care as well, Professional Liability is an extremely important coverage. As mentioned above, depending on your carrier, you may be able to find a General Liability that includes Professional Liability as well.
We work with many Residential Care Facilities and would love to assist you with yours. Give our Residential Care Facilities specialist a call at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.