Stuart Hulbert, Joint Managing Director at Brents Insurance on the shifting risk landscape in the care sector and why a tailored, value-led approach to insurance is now essential for opera
How is the risk landscape changing for care home operators?
The risk landscape has changed considerably. Traditional risks like property damage and employer’s liability still exist, but new complexities have emerged, especially in litigation related to safeguarding and clinical care. Increased regulatory oversight and accountability further add to these challenges. Workforce issues, such as staffing shortages and dependence on agency staff, are also creating additional risks. Moreover, digital transformation exposes organisations to cyber threats and data protection concerns.
What are the risks of focusing on cost when buying insurance?
Cost pressures are unavoidable, but concentrating solely on premium can pose significant risks. Typical problems involve outdated valuations of buildings and contents, insufficient business interruption periods, and liability limits that no longer align with current claims environments. Restrictive policy language or exclusions often go unnoticed until a claim occurs. Insurance should be evaluated based on value rather than cost, especially in a sector where a single uninsured loss could cause severe operational and financial impacts.
How can insurance support compliance and governance?
As expectations from regulators like the Care Quality Commission grow, insurance can proactively aid compliance efforts. An effective program should bolster robust risk management, offer access to specialist services like legal and HR support, and align with governance standards. In this situation, insurance evolves beyond mere safety coverage, enhancing an operator’s overall compliance strategy.
Why is a tailored approach to insurance important in care?
Each care home is unique, and a “one-size-fits-all” approach seldom offers sufficient protection. Elements like the type of care, resident acuity, property features, and staffing structures all impact risk. A customised program ensures coverage aligns with the actual risk profile of the facility, minimising gaps that can occur with standard policies.
What emerging risks should operators be aware of?
Several risks remain underestimated, including cyber threats from increased digital reliance, vulnerabilities in the workforce, and rising clinical complexity as residents present with more advanced conditions. Supply chain disruptions also impact repairs and medical supplies. Acknowledging these risks is key to building resilience.
In this dynamic and changing sector, insurance should offer clarity, confidence, and support. We aim to foster long-term partnerships, ensuring coverage adapts to the challenges and opportunities that care providers face