Residential care homes
What if the owner lives in the house?
You have two policies that each assume the other responds, and a gap between them that nobody has examined. A homeowners policy generally excludes business pursuits. A commercial policy is not written to cover the owner personal property or personal liability.
Review both together rather than at separate renewals with separate people. Resolve explicitly how the property is valued, how the business use is disclosed, and where personal liability ends and business liability begins.
Non-disclosure of the business use on a personal policy is its own exposure, and it is discovered at claim time. Disclosing it and restructuring is cheaper than the alternative, even when the restructured program costs more annually.
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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 changes when we open a second house?
The aggregate basis stops being academic, and a bad year at one house can consume the limits protecting the other.
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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