If you’re looking at opening a second location for your Residential Care Facility for the Elderly (RCFE), things are probably going pretty well. You feel solid with the team you have in place, and confident that you’re providing quality care for your residents. You’re ready to take on a new challenge.
And, undoubtedly, your second location will bring some about. A new RCFE introduces a new realm of revenue potential, but it also means more for you to manage. Fortunately, thinking through your insurance early in the process can help you defend yourself and your now-multiple locations against some of the biggest risks.
Nothing Happens Automatically
Insurance policies like the ones you have for your RCFE are almost always tied to a specific location. In fact, if you look at your policy documents, you’ll probably see that your RCFE’s address is listed.
That means that when you expand to a second location, you need to either adjust your policies or get new ones to cover it. There’s no automatic extension of your coverage to that new address.
For most RCFEs, the most important coverages to get in place for the new location are liability insurance and commercial property coverage. So let’s look at each of those individually.
Covering Your Liability
An expanded footprint means expanded liability. With more square footage, you have more risk of a resident tripping and falling, and of some resident care slipping through the cracks. You don’t want a lawsuit to eat into the added revenue you’ll see from your second location.
As a result, one of the best things you can do to optimize outcomes at your second location is talk to your insurance agent. You’ll need to update your RCFE’s liability coverage, or get a new policy that covers both locations.
Your insurance agent can help you determine the best, most cost-effective way to manage this. It might make sense to have both locations under one master policy or to break each facility out under its own coverage. It’s important to evaluate the risks at each location based on the facility, residents, and staff. Your agent can help you figure out what’s best for your specific situation.
Protecting Your Second Location Against Risk
If you bought a second home, you would get a new homeowners insurance policy for it. Your RCFE is no different. With a new physical address under your umbrella, you need new commercial property insurance.
This protects your second location against theft, fire, and a range of other risks. You have invested or will invest a lot in all of the furniture, medical equipment, and everything else you need to run that second location. Without commercial property insurance tied to that specific address, a single incident could wipe that all away.
Long story short, if you open a second location for your RCFE, you need to expand your liability and commercial property coverage with your expanded footprint. Your team of experts can help you figure out the best way to properly insure your new location, protecting your investment in it. Contact our team at InsureMyRCFE at (805) 413-5668 to get started.
