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Important Insurance Considerations for Aged Care Facilities

Aged care businesses may be exposed to a range of risks, as these facilities have a duty of care to their residents and therefore a responsibility if anything were to happen to them. When it comes to Aged Care Insurance considerations, there are a range of policies that should be considered to provide positive outcomes for staff and residents and ensure minimal business interruption.

From Liability Insurance to Cyber Risk Insurance, see the full range of insurance considerations for the aged care industry here.

Liability Insurance

Cover for liability is extremely important if you are in the aged care sector, where your facilities have a duty of care to your residents, other users of the facilities and your staff. There are a number of policies that should be contemplated when selecting the appropriate cover for your aged care business.

1. General Liability Insurance

This is a necessary policy to carry which extends to Cover you against allegations of personal injury or property damage which could arise as a result of your negligence.  With the range of visitors to facilities extending to include contractors, family members, residents or any other members of the public, there is great risk of personal injury occurring from slips, trips, falls or accidents in any areas, or in connection with the provision of Aged Care services.

2. Professional Indemnity Insurance

With medication management and a wide range of other patient care services now arranged within Aged Care, this risk is high and is necessary to protect against claims of professional indemnity or negligent instruction, errors in advice or recommendations.. 

3. Medical Malpractice Insurance

There are a range of services provided by Aged Care providers and inherent in this is the risk of medical malpractice.  In the event of an alleged act of negligence related to dispensing medication or providing medical services, having malpractice Insurance cover can alleviate stress. 

4. Management Liability Insurance

Directors, Officers, Board Members, Key persons and employees all benefit from having Management Liability Insurance in place. A policy response may be triggered in relation to  claims of negligent act, allegations or substandard levels of care or even allegations of harassment by employees against others within your organisation.  This is an essential policy to consider and early intervention and a well informed legal response can ensure a more reasonable outcome for all involved.

Workers Compensation Insurance

All employees within these facilities benefit from having Workers Compensation cover in place in the event that anyone experiences accident, injury or illness while at work.

1. Workers Compensation Insurance

If your workers experience an event at work which leaves them injured or ill, this cover will ensure that any medical expenses or rehabilitation needs are compensated. This policy will also ensure that any wages will be covered if or while the worker is unable to continue working for a period of time.

To learn more about registering for WorkCover Insurance for Victorian businesses, head to the WorkSafe Victoria website.

2. Voluntary Workers Insurance

Most Aged care facilities enjoy the benefit of a large number of volunteers performing unpaid work and various other services on their behalf. This cover will assist in the case of accident or injury of these people should anything occur while they are undertaking work for the facility. This is an important consideration as Aged Care providers often rely heavily on volunteers and this policy will ensure you are able to look after them should anything happen to them.

Other policies to consider

Aside from Liability or Workers Compensation Insurance, here are some other important classes to be aware of.

1. Property Cover (ISR)

This policy covers both the physical assets of the Facility together with its Gross Profit under a Business Interruption Provision. This ensures that in the case of a claim a facility can continue to provide the level of care expected of its residents and continue to perform its important services within the community. The ISR policy covers an extensive range of exposures from Fire, Storm and Flood through to Burglary, Machinery Breakdown and Prevention of access. In the case of a claim it also contains provisions such as claim preparation costs which provides access to specialist claims handlers that can help to ensure that your are returned to your pre-loss provision in the shortest time frame possible.

2. Cyber Risk Insurance

This form of insurance protects against the real and emerging threats of cyber risk. Dealing with potentially sensitive information for patients, residents or visitors of the facilities, this may be important to protect against losses to the business or to others in the event of a cyber breach. This policy should be considered by any entity especially when you consider the scale of this threat and current mandatory reporting laws in Australia. It can also cover the costs of ransom demands, exploratory costs, ongoing credit monitoring or any one of a range of other remedial actions required once you have sustained a breach or cyber intrusion.

Aged Care Insurance with Atlantic Insurance

With over 25 years of claims settlement experience, Atlantic Insurance have learnt first-hand about industry trends, best practices and legislative requirements of the aged care field. Our qualified, knowledgeable team has a range of procedures in place to minimise the financial impact of claims to ensure you can continue to have resident care as your main focus.

We are also proud members of the ACCPA, highlighting our commitment to the industry and the continued support we provide.

Contact us to begin developing a tailored insurance plan for your aged care facility and be assured that you are protected from industry risks and have access to a range of professionals that are here to help.

Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.

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