Running an aged care facility is a huge responsibility. You care for people who need daily help, medical support, and a safe environment. Families trust you to look after their loved ones. But this important job comes with many risks. Accidents, legal claims, property damage, and health emergencies can happen anytime.
This is why having the right insurance for aged care facilities is essential. It protects your business from financial loss and legal problems.
But there are so many insurance options, so you need to know exactly what to look for to make the right choice. If you’re struggling with this situation, you’re on the right post. In this post, we will talk about the 10 tips to buy insurance for an aged care facility.
Let’s have a look!
1. Understand the Risks in Aged Care
You must know the risks associated with an aged care facility before buying. These include patient injuries, staff accidents, medical mistakes, property damage, and even allegations of neglect. When you know risks, you can choose the right policy that offers full protection to your facility.
2. Types of Insurance
An aged care facility often needs several types of insurance.
Let’s know!
- General liability insurance covers accidents, injuries, and property damage.
- Professional liability protects against claims of mistakes in care.
- Property insurance covers your building and medical equipment.
- Workers’ compensation insurance covers staff injuries on the job.
- Abuse and molestation coverage protects your facility in case of abuse
- Business interruption insurance covers lost income if you must close temporarily.
You should make sure your policy includes the coverage your facility needs.
3. Check the Coverage Limits
Coverage limits decide how much your insurer will pay for a claim. If the limit is too low, you have to pay the rest yourself. Remember one important aspect: aged care claims are very expensive. So, you need to look for higher limits that match your risks. This way, you don’t have to face financial problems in case of any trouble.
4. Consider Exclusions
You should focus on the exclusions before buying. Not all policies are the same and have the same benefits. If your facility has aged people with a special kind of illness, you must ask for additional. In other words, every facility owner should buy according to their needs to avoid future problems.
5. Compare Several Options & Providers
You should get quotes from at least three providers, especially those who specialize in aged care insurance. Then you need to compare coverage, limits, exclusions, and other costs. Many people try to buy simple coverage. The reason is that it costs them little. But this could be a problem when an accident happens.
6. Check Online Reviews
Your insurance is only useful if the company is reliable. For this, you should check online reviews on their website and social pages. You can also ask for customer contacts. That way, you can know how they treat their clients. Besides, you can ask for suggestions from other aged care owners.
7. Think About Additional Coverage
Basic policies might not cover all your risks. You might need extra coverage for:
- Emergency evacuation costs
- Cyber liability
- Special medical equipment
- Vehicles used for patient transport
- Flood or earthquake damage
But it doesn’t mean you must add these options. Yes, you should include if there will be related chances of risks.
8. Work with an Experienced Insurance Agent
An insurance broker knows exactly what coverage you need. They have years of experience in this field and understand the insurance ecosystem. They can explain complex terms in simple language. They also help you compare options and even negotiate better rates. But they charge a consultation fee that’s why many people avoid them. But if you join hands with them, you can buy the right policy for your facility.
9. Review Your Policy Every Year
Your facility might grow, add more residents, and upgrade equipment. If your insurance policy doesn’t match your future growth, you could be underinsured. So, you should review your policy at least once a year. If you see any gaps, it is better to update. But how do you know that you’re able to change your policy? For this, you must read the terms and conditions before buying the policy.
10. Understand Claim Process
If something goes wrong, you should know the exact steps to file a claim. For this, you contact your insurer, but not all are good responders. Some have a very difficult claim process, which could be hectic. So, before buying any policy, you must understand the claim process. You can also ask their clients about their process. If they say yes, they’re good, you can go with them.
Final Thoughts
Buying insurance for your aged care facility is challenging. Because it isn’t just about meeting legal requirements, it’s about a huge responsibility of residents and staff. No doubt, you have more insurance options than ever in 2025, but the best choice is the one that covers your real risks. In this article, we have discussed the useful tips to buy insurance for your aged care facility. If you own an aged care facility, you must read this article before buying coverage.