Insuring Adult Day Care Centers

October 22, 2018

The growing number of elderly, federal and state efforts to meet consumer demands, and increased costs of overall long-term care services, have led to an expansion of adult day and home and community-based service programs. These centers can be medical/health or social centers, or a combination of both. Medical adult care centers provide the same services as social models, but include a nurse on staff and offer health and medication monitoring. Core services that most facilities offer include therapeutic activities, meals, transportation, social services, and education. Centers typically contract with other organizations to provide at least one or more of the core services, particularly transportation and meals. Many facilities are affiliated with other organizations, including home care agencies, skilled nursing facilities, medical centers, or other senior service providers.

What Are The Adult Day Care Risks and Preventions?

The risks associated with adult day care centers include patients choking, falling, medication administration errors (if medical care is provided), contagious diseases, food poisoning and reports of abuse or neglect. It is therefore critical that a total business insurance solution is put into place when discussing coverage needs with insureds. To address these exposures, adult day care centers and programs should secure General Liability and Professional Liability, including molestation and abuse coverage with the appropriate limits and coverage endorsements required. Depending on the insured’s risk profile, Excess Liability that extends the underlying coverage amount available in the General Liability policy is also recommended to respond in the event of a catastrophic loss. In addition to these fundamental liability coverages, be sure to look at an insured’s needs and requirements for Employment Practices Liability (EPL), Property, and Workers’ Compensation insurance.

To help prevent losses, a sound risk management plan should also be a part of an adult day care center’s insurance program. This includes having policies and procedures in place for everything from staff training to facility maintenance; food storage, service, and sanitation; storage of chemicals, medications, and supplies; emergency preparedness and disaster planning, including fire and evacuation procedures; transportation if provided by the facility; abuse and neglect prevention; among others.

About Manchester Specialty

Manchester Specialty provides total business insurance solutions for a wide range of facilities, including adult day care centers. We can help you offer the following insurance lines to your clients: General Liability, Professional Liability, Workers’ Compensation, Management Liability, Cyber Liability, and Non-Owned & Hired Auto insurance, among other key coverages. For more information about how we can help you protect your insureds, please contact us at 855.972.9399.