Residential care homes
What changes when we open a second house?
The aggregate basis. With one home, whether the annual aggregate is shared or applies separately to each location makes no practical difference. With two or three it decides whether a bad year at one house consumes the limits protecting the others.
Ask for a designated location general aggregate endorsement when the second home opens, and confirm it is actually attached with every home on its schedule. An operator who acquires a home mid-term can end up with an endorsement covering the original locations and silently omitting the new one.
Weigh the cost against your own claim frequency by house rather than against the premium difference alone, but for a licensed operator with more than one location it is usually the right purchase.
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More residential care homes questions
Why is a business owners policy not enough for a licensed care home?
Because it has no adequate professional services grant, and a negligent care claim is a professional liability claim.
Can a six-bed home get specialty market access?
Yes. What the markets need is a submission that describes the operation accurately rather than one that treats it as a generic small business.
What if the owner lives in the house?
Two policies each assume the other responds. A homeowners policy generally excludes business pursuits and a commercial policy is not written for personal property.
Do small homes need abuse and molestation coverage?
Yes, and small size arguably increases the exposure, because supervision is thinner and a single caregiver spends unsupervised time with residents.
Do we need workers compensation for live-in staff?
Almost certainly, and live-in arrangements complicate both the compensation question and the wage and hour question.
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