Work smarter, not harder. It’s an old adage that still rings true today. That’s particularly true when you run a Residential Care Facility for the Elderly (RCFE), which requires you to split your focus in a myriad of directions.
Third-party vendors can seem like a perfect solution. By hiring a company that specializes in an area you need to fulfill, you offload work to theoretical experts. You don’t add more work to your team’s plate, and resident or facility needs still get met.
Strong third-party relationships can be an asset to RCFEs, but they can also be a liability.
Why third-party vendors introduce risk
Let’s say you hire a vendor to provide cleaning services at your facility. Then, months later, a family starts complaining of substandard cleanliness in common areas. The situation escalates, and they end up mounting a legal case claiming negligence.
Obviously, the vendor should be in the direct line of fire there. If you contracted cleaning out, they’re responsible for the results of that cleaning, right? Sort of. But it’s common for the RCFE to get named in the suit, too.
If you have something in your resident contracts about providing clean and safe living spaces, you can absolutely be held liable. It’s important, then, to put some safeguards in place.
How you can protect your RCFE
If you’re thinking about working with external companies, take these three steps to mitigate risks.
#1: Vet the vendor
When you hire a vendor, you allow them access to your facility and your residents. You need to be sure that they will perform in line with your expectations and standards around safety and care.
Before you hire a vendor, make sure you learn everything you can about them. Research them online. Ask if they have other customers you can speak to about their experience with the company’s services. If they don’t, that’s a definite red flag.
#2: Make sure you’re clear on their insurance coverage
If a vendor holds up to your initial analysis, the next step is to make sure they’re properly insured. If they have insufficient coverage, your own policy may need to make up the shortfall.
Ask to see their certificates of insurance for:
- General liability insurance
- Professional liability insurance
- Workers’ compensation
Also, check that they have policy language that covers abuse and neglect if they’ll be interacting directly with residents. And on their liability coverage, make sure there’s no clause that the policy covers “designated premises only”, unless your facility is specifically designated.
Then, you want to get your RCFE named as an additional insured on their policies.
Finally, make sure you have a waiver of subrogation. That prevents the vendor’s insurer from going after your policy to reclaim money.
#3: Establish strong contracts
Finally, before you hire a vendor, have a legal professional review your contract with them. This helps you avoid taking on liability you didn’t expect or facing gaps that leave you exposed.
We can help here, too. We’re experts in liability mitigation for RCFEs. To make sure your own policies offer the protection you need when you hire third-party vendors, contact our team at InsureMyRCFE at (805) 413-5668 today.
