More changes to the Care Sector Insurance Market
2014 has seen another dramatic change to the already restricted Care Sector Insurance market. Ecclesiastical Insurance and Ansvar Insurance have announced that with effect from 1st March 2014 they will not be writing liability new business or offering renewal terms for the care sector unless the organisation is a UK based registered or exempt Charity. This means that many businesses will now have no choice but to be look for an alternative to Ecclesiastical Insurance.
Sadly the care sector has proven to be an unprofitable area of insurance for many insurers. Liability claims are all too common, especially those involving:
- Slips and trips
- Assault of staff by service users
- Back injuries
- Allegations of physical or mental abuse
Those markets that do continue to actively write insurance for registered care homes, domiciliary care agencies, hospices, supported living providers and other associated businesses will be inundated with new enquiries.
Help obtaining alternative Care Home Insurance
In a restricted market with lots of risks vying for the underwriter’s attention, my tips on how to approach the renewal of your care sector insurance package include:
Never use more than two or three brokers. The market is limited and nothing turns off an underwriter’s interest like seeing the same risk in from a half dozen of more sources
- Make sure the brokers you are speaking to have proven credentials in the care sector (find out more about ours here!)
- If you have had claims make sure that the insurers are fully aware of the positive steps you have taken to try to prevent similar incidents occurring in the future.
- Make sure that the new insurance company is fully aware of the range of services you offer, the types of service user you care for, their age ranges, whether any of them have a history of violence, arson, sexual offences or other challenging behaviours.
- If you are a registered with the Care Quality Commission then underwriters will look at the CQC reports. This should be a positive for your business if it shows you in a good light and highlights how responsive you were to comply with any recommendations or requirements that they may have had. Make sure the prospective insurers know exactly how good your policies, procedures and risk management measures are.
- If you are not CQC registered, for example if you are a Supported Living Provider, prospective insurers will need to know more details about your staff, how you vet, them, the training you provide for them, the duties they carry out etc.
- Start early!
2014 will be a difficult year for the care sector insurance market. Hopefully by employing the tips above the process will prove to be a little bit smoother for you, especially if you are insured with Ecclesiastical.