What Senior Living Owners Need to Know Now
Is your senior living facility one bad storm away from financial ruin? Or are you overpaying for insurance coverage you don’t need? In today’s unpredictable insurance market, the answer might surprise you…
Hey there, savvy senior living operator. Pull up a chair, because we need to talk about something that’s keeping your colleagues (and probably you) up at night: the current state of the insurance market.
Now, I know what you’re thinking. “Insurance? Yawn. Wake me when it’s over.” But hold your horses, because this isn’t your grandma’s insurance market we’re dealing with. It’s what industry insiders are calling a “tender” market – and it could make or break your business faster than you can say “increased premiums.”
Let’s break it down, shall we?
The Good, The Bad, and The Downright Ugly
First, the good news: We’re not in the same boat we were in during the COVID chaos. Remember those dark days? Insurance carriers were running for the hills, jacking up prices, and tightening coverage terms faster than toilet paper was flying off the shelves.
But here’s the kicker: We’re not out of the woods yet. The market is what experts call “tender” – and no, that doesn’t mean it’s going to give you a warm hug and tell you everything’s going to be okay.
Here’s what “tender” really means for you:
- Property Insurance: A Rollercoaster Ride
- Good news: Rates are decelerating. We’re seeing some decreases in Natural Catastrophe pricing.
- Bad news: If you’re in a hurricane-prone area or wildfire zone, you’re still in for a bumpy ride.
- Ugly truth: One big storm could send this market into a tailspin faster than you can say “Category 5.”
- General and Professional Liability: The Calm Before the Storm?
- Good news: Pricing is back to pre-COVID levels for many.
- Bad news: Large claims are becoming more frequent, and even small claims are starting with demands at policy limits.
- Ugly truth: Juries are becoming desensitized to large verdicts. Your next claim could be a doozy.
- Cyber Insurance: The Silent Killer
- Good news: Rates are relatively stable… for now.
- Bad news: Ransomware attacks increased by 64% from 2022 to 2023.
- Ugly truth: One software update gone wrong could bring your entire operation to its knees.
Now, you might be thinking, “Great. So what the heck am I supposed to do about all this?” Well, my friend, that’s where the rubber meets the road. Here are some actionable steps you can take right now to protect your business:
- Don’t Be a Stranger to Your Underwriter Listen up, because this is important. Your underwriter isn’t just some faceless entity stamping “APPROVED” or “DENIED” on your policy. They’re your partner in this crazy insurance game. So treat them like one.
- Set up regular check-ins throughout the year. Not just at renewal time.
- Share your wins. Did you implement a new fall prevention system? Tell them about it!
- Be transparent about your challenges. They appreciate honesty more than you know.
- Data is Your New Best Friend I’ll be honest with you – in today’s market, data is king. And if you’re not using it to your advantage, you’re leaving money on the table.
- Benchmark your rates against industry peers. (Psst… we can help with that.)
- Track and report on your own risk metrics and KPIs.
- Use this data to tell your unique story. Stand out from the pack!
- Start Early, Finish Strong Here’s the bottom line: Your insurance renewal isn’t a one-and-done deal. It’s a year-round process.
- Begin preparing for your renewal months in advance.
- Involve all departments – risk, finance, operations, clinical, legal. Everyone has a role to play.
- If you can’t reach fair terms with your current carrier, give yourself time to explore alternatives.
- Embrace Technology (But Do It Smartly) Technology can be your best friend or your worst enemy. Use it wisely.
- Invest in robust cybersecurity measures. Multi-factor authentication is no longer optional.
- Implement EMR systems and fall prevention tech. Show underwriters you’re serious about risk mitigation.
- But remember: With great tech comes great responsibility. Make sure you understand and can explain your systems to underwriters.
- Tell Your Story (And Make It a Bestseller) In a world of negative headlines about senior living, you need to be your own best advocate.
- Highlight your community involvement and resident satisfaction.
- Showcase your staff training and retention initiatives.
- If you’re growing through acquisitions, detail your integration plans and timelines.
Look, I’m not gonna sugarcoat it. The insurance market is tough right now. But here’s the thing: Tough markets separate the wheat from the chaff. And I’m betting you’re not chaff.
By taking these steps, you’re not just protecting your business. You’re positioning yourself as a leader in the industry. You’re showing underwriters, residents, and staff that you’re not just reacting to the market – you’re shaping it.
So, what are you waiting for? The time to act is now. Because in this tender market, the only thing we know for sure is that change is coming. And when it does, you want to be ahead of the curve, not scrambling to catch up.
Remember: In the world of insurance, the early bird doesn’t just get the worm. It gets the best rates, the broadest coverage, and the peace of mind that comes with knowing you’re prepared for whatever the market throws your way.
Now, go out there and show this tender market what you’re made of. Your residents, your staff, and your bottom line are counting on you.
Don’t let the “tender” insurance market catch you off guard. Act now to protect your senior living facility, or risk being left behind when the market inevitably shifts.