If you’ve been watching your insurance premiums rise over the last few years, you’re not alone. Your independent living facilities insurance is a shared risk. You may not have had a claim, but other elder care businesses have. The insurance company has to balance your risks against those of the industry.
Insurance companies used to be able to put the premiums you pay into government bonds and receive a 5-7% payout, which helps offset the claims. Today’s government bonds are barely paying 1%, which means that cushion is no longer there. This has led to many companies raising their premiums.
Another area that affects your insurance premium is the location of your facility. A facility in Oklahoma where tornadoes have hit heavily over the last few years faces more risk than one in Arizona. You may even have to be careful that your insurance doesn’t exclude major factors that increase your risk. This could include a flood or earthquake, not just a tornado.
Your previous insurance history is another factor that goes into your premium. This is why your risk management policy is so important. By taking care to mitigate your risk and implementing procedures that keep clients safe, you limit the claims to your policy. The independent living facilities insurance company takes that into account when calculating your premium. Work with your specialized agent to find the right balance of coverage while staying within your budget.