Care Homes: The Rising Cost Of Being Taken To Court

But what is a limit of indemnity? In this instalment of our jargon buster series, we explore this very question – and why you should care.

The rising cost of indemnity

When you think of a successful claim, you might think of the final awarded figure when it comes to considering how much liability cover your care organisation needs.

But the costs that surround a successful claim tends to comprise of much more, including:

• Investigative costs – loss adjusting, third-party background checks, financial accounts, etc
• Legal fees – both yours and the claimant’s
• Medical fees – short-term expenses and costs incurred from long-term illness or injury
• Future care needs – in the case that someone is harmed for life by the actions of someone at your care organisation
• Loss of earnings – if the claimant can’t work
• Physical damage – for example, property damage.

There are many different components that go into the final figure awarded to successful claimants. In recent years, a combination of factors, particularly Brexit and the cost-of-living crisis, have seen awarded damages rise to staggering sums – in some cases, up to double what they would have been a few years ago.

Your limit of indemnity, then – the amount which your insurer will cover you for in the event you’re accused of negligence – may no longer be enough to adequately cover you. That could leave your care organisation in an extremely vulnerable position.

Curious about how Towergate can assist your business?

Contact their friendly expert adviser today: richard.barnes@towergate.co.uk or by calling 07768 314 298.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.