Senior living and long-term care operators will face commercial liability insurance policy rate increases of 5% to 30% in 2019, according to a new report by Willis Towers Watson.
Potential class-action lawsuits and natural disasters are contributing to increased scrutiny of operators by underwriters, the authors of “Marketplace Realities 2019” said. “Class action lawsuits focused on anti-consumer, staffing, marketing and [Americans with Disabilities Act] violations could be coming in more states,” they predicted.
Senior living and long-term care operators are facing closer examination than are healthcare providers in general, according to the report, because of the increasing frequency and severity of claims.
“Recent studies indicate assisted living and memory care communities are averaging higher severity losses than those in skilled nursing facilities,” the authors said. “Buyers will need to keep a keen eye on verdicts, settlements, class action matters and the evolution of tort conditions in various venues.”
Insurance carriers are increasing their focus on management of falls, memory care and prescription drugs, they added.
States seeing “significant” rate increases, according to the report, are California, Illinois and Florida. Overall, operators should expect to be asked to submit more detailed information, meet face-to-face and wait longer for price quotations, the report said.