23rd May, 2008
CAT is most competitive way for US Long Term Care facilities to insure excess liability
CFC Underwriting announces today, the launch of CareSurance™ CAT an innovative excess liability policy for America's Skilled, Assisted and Independent Long Term Care facilities.
CAT is designed to react specifically to multi-resident catastrophe events, and provides competitively priced excess liability cover for the first time in the LTC market. The policy is triggered by five or more residents bringing a claim against the facility in relation to a specific event (e.g. fire, flood, hurricane, or single source abuse). It offers $5,000,000 worth of cover either as a standalone policy or in addition to an LTC's existing primary liability cover.
With nursing home litigation one of the fastest growing areas of healthcare liability in the US, premiums in this sector have traditionally been high. CFC's new wording ensures that the policy only responds to genuine multi-resident catastrophe events, and in so doing is able to offer substantial limits at a fraction of the cost of most competitors, with premiums starting at $10,000 per $1m.
CFC Underwriting's Business Development Director, Graeme Newman comments: "Insuring excess liability in this industry has hitherto been disproportionately expensive. With our innovative approach to understanding risk, we have been able to develop a policy which responds when it needs to. But the single resident cap of $1,000,000 and additional $10,000 deductible per claimant ensures that the policy is only triggered in genuine multi-resident catastrophe events."
- Professional and General Liability (including Products and Completed Ops Liability)
- Sexual Misconduct and Physical Abuse Liability
- Available as a standalone policy or in excess of existing liability cover
- All risks trigger, subject to the event being identifiable in time and place
- Cover for abuse claims originating from a single cause
- An incident sensitive trigger - a lawsuit does not have to be brought against the client for the policy to respond - it responds to any incidents which could give rise to a claim
- No compulsory risk management
- Aggregate claim event limit of $5,000,000 in excess of between $500,000 and $5,000,000 per claim event, with a minimum premium of $10,000 per $1,000,000 of limit.
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