Running a Residential Care Facility for the Elderly (RCFE) can be rewarding. It gives you a way to take care of people in need while also generating revenue. Because you’re housing a vulnerable population, though, you face some risks.
Fortunately, the right suite of insurance products helps to protect you here. The coverage you need depends on the type of facility you’re running, including the building(s) from which your RCFE operates.
If they’re older, you might want to consider environmental risk insurance.
Older residents, older buildings
In the same way your residents need more care as they age, buildings do, too. Older structures mean a heightened risk for problems like mold, along with now-phased-out materials like lead and asbestos.
Fortunately, a specific type of coverage can step in if you discover and consequently need to address an issue like this on your property. Environmental risk insurance, also called environmental liability insurance or pollution liability insurance, offers the protection that general liability coverage doesn’t here.
Specifically, the right environmental risk policy can help you deal with the cost of:
- Mold
- Asbestos
- Lead paint
- Lead pipes
- Radon
- Carbon monoxide
- Soil contaminants
If any of these get discovered at your RCFE, the coverage steps in to help with both the resulting losses and any liability claims that arise. If you need to relocate residents while you clean up the issue, for example, it can pay out to offset that expense. Or if a resident’s family member sues you for their lead exposure, your environmental liability insurance can cover the cost of the lawsuit and any resulting settlements (up to your policy limit).
Some policies even cover regulatory penalties your facility faces.
In short, this kind of insurance offers broad-spectrum protection if an environmental hazard is discovered at your RCFE.
Getting the right coverage for your facility
For starters, it’s important to have an inspection for your facility in place. For your environmental risk insurance to step in if an issue arises, you need to be able to prove that your building was previously checked and found uncontaminated. Your RCFE insurance broker can help you make sure you get the inspection needed to put your coverage in effect.
Generally, the best coverage for RCFEs offers protection for both sudden and gradual-onset environmental hazards. This way, you can get protection if mold develops after a sudden leak, or if you discover mold that’s been growing for some time.
Talk with your insurance broker about additional protections your RCFE might need. If you’re unsure about the site of your facility, some policies offer regular site inspections, for example. Or if you have concerns about the high cost of regulatory penalties in your area, your broker can make sure you have a policy that covers or at least offsets those.
With environmental risk insurance in place, discovering a hazard at your facility goes from catastrophic to manageable. To protect yourself and your residents, ask your broker if this coverage is right for your RCFE. Contact our team at InsureMyRCFE at (805) 413-5668 today.
