What's Happening?
A study by Liberty Mutual/Ironshore reveals that indemnity payments for senior care facilities have more than doubled over the past decade, driven by aggressive legal strategies. The average indemnity payment reached $226,028 in 2024, with resident falls accounting for over 45% of claims. The study highlights the need for multifaceted risk management approaches to prevent falls and improve safety. Changes in federal Medicaid and Medicare funding are adding pressure to senior care facilities, affecting their financial stability and risk management strategies.
Why It's Important?
The increase in indemnity payments and legal system abuse in senior care liability claims could lead to higher insurance costs and impact the financial viability of senior care facilities. The prevalence of resident falls as a major cause of claims underscores the need for improved risk management practices. As federal funding evolves, facilities may face added financial pressure, potentially affecting their ability to manage risks effectively. The findings highlight the importance of strategic planning and relationship-building with insurers to navigate these challenges.
What's Next?
Senior care facilities may need to adopt more comprehensive risk management strategies to mitigate liability claims and improve safety. The insurance industry might see increased demand for specialized coverage and risk management services tailored to senior care facilities. As federal funding changes, facilities will need to closely monitor their financial health and reimbursement processes. Agents and brokers are advised to build strong relationships with insurers to better understand client needs and develop effective risk management strategies.
