Inflation is back at 3%. While that’s slightly better than some economists predicted, it’s still hitting Americans right in the wallet. That’s particularly true if you run a Residential Care Facility for the Elderly (RCFE). With everything from medication to food costing more, you might be feeling a squeeze.
With less budgetary wiggle room, you want to make sure that you’re getting the best price on what you need to run your facility, and that what you buy will actually meet those needs. Today, we want to focus on your RCFE insurance. In the face of inflation, it gets extra important to compare quotes and regularly review your coverage.
Inflation and your premiums
Inflation can lead to higher wage demands, which might force you to run with a leaner staff. That increases your risk for tired workers making mistakes, or something slipping through the cracks. Inflation can consequently have a direct impact on your liability coverage premiums.
Meanwhile, if you do increase employee wages, it will increase your workers’ compensation costs. The price of that kind of coverage is directly tied to your payroll.
At the same time, as inflation drives up the cost of construction materials, repairing or rebuilding your facility after an incident gets more expensive. That can mean premium increases for your property coverage.
In short, it’s a time for RCFE owners to be bracing for the potential for their insurance costs to go up. That’s what makes it a particularly good time to have an experienced RCFE insurance broker on your side.
The right broker can help you explore your policy options to make sure you’re not overpaying for coverage. Because brokers aren’t bound to one insurance provider over another, they make it easy to shop around to find the best price for the protection your RCFE needs.
Review your coverage to protect against inflation
There’s another way inflation can impact your insurance coverage and costs. As things get more expensive, you need to make sure your policies are keeping pace with those climbing costs.
Take your commercial property coverage as an example. When you put your policy in place, you probably made sure you had sufficient coverage to rebuild your RCFE if something catastrophic happens. But as construction materials get more expensive, you need to be periodically updating your policy to make sure a rebuild wouldn’t outstrip your policy limits.
Review your policies periodically to make sure you’re getting the protection you need even in our current economic climate. Again, a good RCFE broker can help you here. They can even explore finding coverage that specifically includes an inflation guard endorsement, helping you defend against finding yourself underinsured.
Clearly, inflation has a direct impact on the cost of insuring your RCFE and the way your coverage works. It puts a burden on you to make sure your policies are offering the protection your facility needs. The right broker can lighten that load. To review your coverage with an expert who can also help you make sure you’re not overpaying in premiums, contact our team at InsureMyRCFE at (805) 413-5668 today.
