Nursing Home Liability Insurance: Policy Terms Defined

The cost of protecting a nursing home from lawsuits through nursing home liability insurance can be prohibitive. However, knowing the terms below will help you to keep costs down:

Deductible - Per Occurrence and Policy

Your deductible is the amount you must cover out of pocket before your nursing home liability insurance kicks in. There is typically one deductible for each occurrence and one cumulative deductible for each year. Raising your deductible may lower your premium.

Limit - Per Occurrence and Policy

Your policy limit is the highest amount your insurance will pay. Determine how much you can truly lose before setting this limit with your company. You should not lower your limit to save on premium. A lawsuit from a resident can become systemic if other residents join and the suit becomes a class-action case. In the case of such a catastrophic loss, you will need high limits to protect your business.


Due to the nature of the business and the location of your nursing home, you may face exclusions. These are usually listed at the end of the policy. Nursing homes are particularly at risk for liability claims. Consider self-insuring to lower your premium for the exclusions that deal with small, frequent claims.

Experience Rating

Your experience rating will not be listed in your policy. You may be able to get it from a broker. This will show you the factors which are leading to your exact premium.


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