According to a report by the Conference Board of Canada, by 2026 an estimated 2.4 million Canadians aged 65 and over will require continuing care support – a 71% increase from 2011. Senior care will only become riskier as facilities begin to serve more and more of the population, resulting in the need for broader insurance protection.
While common coverage basics, such as property, crime and professional liability, are surefire coverages in a senior care insurance policy, other important needs are often overlooked.
MedThree Insurance Group’s Myra Capinpin and Eugene Wangyal, senior underwriters, share the common coverage gaps they come across when insuring senior care facilities.
• Non-existent or inadequate cyber coverage, especially cyber crime.
• Insufficient liability limits to handle aggregate exposures where multiple residents are affected.
• Lack of third party bonding coverage for theft of resident funds by employees.
• Inadequate sub-limits for landscaping, paved walkways, and parking lots.
• Non-existent or low levels of coverage for alternative accommodation costs for residents following a loss.
• Insufficient business interruption limits and periods of indemnity – 18-24 months should be a minimum.
• Not obtaining prior acts cover when moving from claims made form to an occurrence form.
• Underinsured property limits as building and equipment costs are climbing quickly in this sector.
• Lack of sufficient business income coverage for evacuation or restricted access due to an outbreak of infectious disease.