The right insurance portfolio goes a long way toward protecting your Residential Care Facility for the Elderly (RCFE). With proper coverage in place, you get a place to turn when things don’t go the way you expect.
That, of course, means a strong liability insurance policy. But you shouldn’t necessarily stop there. Here are seven add-on coverage options that can help you put more robust protection in place.
#1: Business Interruption Insurance
If a covered event — like a fire — forces your RCFE to temporarily close down, this coverage can step in to make up for the money that stops coming in.
A good business interruption insurance rider can help you handle everything from payroll to any operating costs that persist during your closure. At the same time, it gives you a way to keep money coming in because it offers replacement for lost revenue.
#2: Equipment Breakdown Coverage
This rider offers protection if a key piece of equipment breaks down at your facility. That could be the medical equipment your residents need or something that helps your facility operate, like your kitchen oven or your HVAC system.
Equipment breakdown coverage helps cover repairs for the broken-down piece of equipment. It can also step in to replace lost income due to the breakdown.
#3: Cyber Liability Insurance
While you can — and potentially should — explore getting a standalone cyber insurance policy, you could alternatively explore adding this protection as a rider on your liability policy.
In either case, you’ll put a safeguard in place if your RCFE faces a serious digital issue like a data breach. The cyber coverage steps in to cover everything from any resulting legal fees to the cost of notifying people that their data has been compromised.
#4: Employment Practices Liability Insurance
Ideally, your team functions as a happy, cohesive unit. But if you end up with a disgruntled staff member on your hands, you’ll want to know you have somewhere to turn.
Employment practices liability insurance (EPLI) helps you with legal fees and settlements if an employee brings a case against you. It can help with everything from a sexual harassment claim to a wrongful termination lawsuit.
#5: Umbrella Liability Insurance
If you want protection over and above the coverage limit of your liability policy, talk with your insurance agent about this add-on coverage option. With an umbrella rider, you can get a higher dollar amount of coverage in the event of a major claim.
#6: Flood or Earthquake Insurance
If your facility is located in a flood plain, talk with your agent about adding some protection against floodwaters. And in California, earthquake insurance is generally recommended.
Standard property insurance policies generally exclude both of these coverages, so you need to be proactive about putting these protections in place.
Clearly, there are a broad range of add-ons that can help you bolster safeguards for your RCFE. You don’t have to determine which ones are right for your facility on your own. Our team of RCFE insurance specialists can help you build the right policy with the right riders. Call us at (805) 413-5668.
