The Importance Of Care Home Insurance

Towergate Insurance speaks to ITN about the importance of appropriate care home insurance cover in the care industry.

Transcript: The Importance Of Care Home Insurance

Woodlands has just 15 elderly residents, they are just some of the almost half a million older people living in residential care in England…

To Althea, Tom and Bill this is very much their home and mementos from their extraordinary lives adorn the walls.

Tara who looks after residents here is passionate about creating a family environment

TARA UPSOT – We made this wall together, we are a family…etc.

Families whose Mums and Dads live at Woodlands are in no doubt it is a special place BUT increased scrutiny from the Care Quality Commission and a lack of government funding are putting the care industry under massive strain…

Geoff Lane whose group manages Woodlands says the challenges for the care industry are vast.

Geoff SOT – “CQC are changing the way they inspect care homes and companies, I welcome that. But there’s scrutiny from the media, and from the public at large”

But by far the biggest threat to care homes is much simpler. Low profits in the sector mean that often homes are underinsured or don’t have the right insurance at all.

Geoff SOT – it’s critical to be well insured with the right insurers because there are people in the market not supporting or paying claims…. 5’39 “You can’t be complacent, we live in a society where if something’s gone wrong, it’s somebody’s fault so you need the right Expertise behind you”.

And so Geoff decided on insurance from care specialists Towergate.

Now, Susan Lee works hand in hand with Geoff to protect this home. She has seen first hand the devastation an uninsured claim can cause…

Sue SOT – … On the extreme side of things, if there’s been a huge fire…the business might be interrupted for a period of time… residents could be moved into a different care home completely…that can have a devastating financial consequence and can in fact close a business.

“Cheap isn’t always best. It’s getting that right balance between quality of insurer, good cost effectiveness and the right advice from the team that understands insurance and the care industry”

And it was understanding that Geoff was looking for when he insured Woodlands with Towergate…

Geoff SOT - “They don’t ask a lot of doubtful questions for lots of info which isn’t necessary, they’ve got a good insight into what a good care business is and isn’t…they have credibility in the market so we feel they sell us to the underwriters”

But what about the majority of care home businesses that are small… they too need protection and hand -holding. Paul Burn runs a number of care homes and he was shocked to find out that he like thousands of others bought insurance from a broker who didn’t ask the right questions… leaving him unsupported and underinsured.

He now works with Towergate’s Simon Shaw to protect his business.

Paul Sot - “They process everything for you, the people I was with before I felt as if I was doing the hard work and I didn’t understand it anyway.

Now, I can do what I am supposed to be doing which is worrying about running my care homes and not about insurance”

Simon wants to make sure his clients big or small get more than just a policy document – by focusing on staff training in homes, and health and safety most are unlikely to make a claim…keeping premiums down across the industry.

Simon Sot… - “ Because we’re specialists we understand their complications, we can relate to that… We let them deal with the people who need the care and we make sure there are no gaps in their cover whatsoever.

But it’s not only about running a risk free care business, having the right insurer means Althea / Tom and Bill are protected in the very place that matters … in the comfort and safety of their home where they’ll play out the final days of their extraordinary lives.

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