Undoubtedly the majority of owner-operators of assisted living facilities have personally
experienced, or have heard of someone experiencing “sticker shock” at the current
premiums the insurers have projected upon the industry. This, of course, comes on top of the
additional costs the state has imposed due to the new power generating law.
For the past number of years, there has been a gradual but steady uptick in claims that have
cost the insurance industry heavily. The number of claims per 100 occupied beds rose from
.71 in 2007 to .92 in 2012 and to 1.02 in 2017. At the same time, the average amount to
defend, settle or litigate a claim rose 40% during the same time period.
A 2nd Impact that resulted in these increases has been the departure of a number of
insurance carriers that specifically wrote liability for assisted living facilities. This has placed a
further burden on the remaining causing their rates to explode.
Additionally, the current carriers have tightened significantly their underwriting guidelines
and imposing debits for those facilities that in the past have been fined or having negative
surveys with tags.
My suggestion at this time is to make sure your agent is providing you with the most
competitive pricing available, along with a stable carrier. Here at The Plastridge Insurance
Agency we are just as concerned in keeping your costs as low as possible. In addition to our
current insurers, we have recently contracted with another that hopefully will be able to offer
very competitive premiums.
My future articles will address what you can do to mitigate the major cause of
Ronald A. Daddio A.A.I.
The Plastridge Insurance Agency