Administrators looking at extra insurance coverage
Concerned with possible legal exposure, many administrators are considering a new insurance option. Individual administrators' liability insurance is a supplemental policy that helps reduce exposure when facility coverage is inadequate or dropped.Advocates say that the product is not a substitute for commercial general liability or professional liability coverage but bascically it gives administrators in nursing facilities and other long-term care settings a much-needed safety net.
For example, if an employer drops coverage or if an existing policy fails to cover an administrator's full liability, the policy offers up to $1 million in coverage (after a $5,000 deductible). This year, the American College of Health Care Administrators (ACHCA) has begun offering members a "VitalCare" policy through Lighthouse Companies. These policies can be purchased by administrators who are working as employees at facilities that have their own insurance coverage. Policy costs vary, depending on coverage options.
"We chose to discount this program for ACHCA members because this is a premier organization in the field of long-term care," said Peter W. Stanislaw, director of the VitalCare Program for the Lighthouse Companies. Chubb is the insurer, with Lighthouse acting as the "program manager," he said.
College President and CEO Mary Tellis-Nayak said many members had previously expressed concerns about legal exposure if their facility policies prove inadequate.
She added that some employers are likely to offer these policies as another way to recruit top job candidates.