Continuing care retirement community insurance

How is a continuing care retirement community insured?

A continuing care retirement community (CCRC) is usually insured under a single program that covers every level of care on campus, rather than separate policies for independent living, assisted living and skilled nursing. The program combines professional and general liability, property for the whole campus, workers’ compensation, auto and cyber, with management coverages above it. One program avoids gaps when a resident moves between levels and lets limits be shared or set by building as the risk requires.

Points a CCRC program must get right that a single-setting facility does not face:

• Every level is classified correctly. Underwriters price skilled nursing beds, assisted living units and independent apartments differently; an outdated census misprices the whole program.
• Transitions are covered. A resident moving from an apartment to assisted living or skilled care should never fall between policies or coverage forms.
• Limits match the highest-risk level. Shared limits must be large enough for a serious skilled nursing claim without leaving independent living underinsured.
• Campus amenities are included. Dining, fitness, pools, transportation and events add general liability exposure on top of care.

How do care partners and contractors affect a CCRC’s insurance?

Most CCRCs rely on a network of outside partners, such as therapy providers, pharmacies, medical directors, home care agencies, staffing firms and food service companies. When a resident is hurt, the claim often names the community along with the partner. Your contracts should require each partner to carry appropriate insurance, name the community as an additional insured, and agree to indemnify you for their own work. Your own policy should clearly state who counts as an insured.

We review partner contracts and certificates against your program so the risk sits where the contract says it should.

What does a CCRC board need insurance protection for?

CCRC boards and executives make long-term promises to residents about housing, care and finances, so their decisions draw scrutiny from residents, families, lenders and regulators. Directors and officers liability protects leaders against claims over those decisions. Fiduciary liability covers errors in managing employee benefit plans, crime coverage protects funds against theft and fraud, and media event expense coverage helps pay for communications when an incident or investigation becomes public.

• Directors & officers. Claims alleging mismanagement, misleading disclosures to residents or poor financial decisions.
• Fiduciary liability. Errors in administering retirement and health plans for employees.
• Crime. Employee theft, forgery and funds-transfer fraud involving community or resident funds.
• Media event expense. Reimburses covered costs of responding to a media event that threatens your reputation after an incident, claim or investigation.
• Surety. Bonds that contracts, lenders or regulators may require.

How should a CCRC insure campus construction and expansion?

New buildings, renovations and added units need builder’s risk coverage for the structure while it is under construction, and construction liability for injuries and damage the project causes. On an occupied campus, the project also creates exposure for residents living next to the work. Before construction begins, the community should confirm who carries builder’s risk, how the contractor’s liability limits stack with its own, and how new buildings move onto the property policy at completion.

1. Confirm whether the owner or contractor carries builder’s risk, and that the limit matches the full completed value.
2. Review primary and excess construction liability and the contractor’s additional insured requirements.
3. Plan for resident safety, access and noise around the work area.
4. Schedule the handoff to permanent property coverage before occupancy, along with updated values for the whole campus.