According to the Center for Disease Control, around 900,000 Americans live in residential care facilities. These facilities provide a necessary service for people who can no longer live alone due to age, illness or disability. If you operate a residential facility, your insurance package must include not only general liability insurance but also professional liability coverage.
General Liability vs. Professional Liability
It is important to understand the difference between general and professional liability for residential facilities. General liability insurance protects your business if someone suffers damages while visiting your facility. For example, if a visitor trips and falls in your parking lot, general liability insurance covers the person’s medical care, as well as legal fees if the person decides to sue.
However, general liability does not cover professional errors or negligence. These situations are covered by professional liability insurance. In many professions, this is called errors and omissions insurance. For doctors, it is called medical malpractice insurance.
Why Your Facility Needs Professional Liability Insurance
Despite your commitment to your residents’ wellbeing, a resident or family member may accuse your facility of failing to provide proper care. If, for example, a resident dies due to an undiagnosed illness, his or her family may sue your facility for negligence. Professional liability for residential facilities covers legal fees and protects your business and your staff.
A lawsuit can be financially devastating for your residential facility. Having professional liability insurance protects your business, your employees and your residents.