(800) 869-8643

admin@hayesbrokers.com

The ABCs of Elder Care

The ABCs of Elder Care

As the Baby Boomer population continues to age, the number of assisted living facilities in the US grows. Everything from nursing homes to independent living communities, to those facilities with respite and Alzheimer’s care are available to the more vulnerable of our citizens: aging seniors. Working with the elderly can render these facilities vulnerable, as well. Abuse and other types of crime are easy to perpetrate, exposing elder care facilities to claims of abuse and neglect, whether it be physical or financial in nature. Here are insurance coverage options that every facility should have. Abuse, Neglect and/or Molestation The National Council on Aging (NCOA) reports that 1 in 10 Americans aged 60+ has been a victim of some sort of elder abuse. Seniors in assisted living facilities are particularly vulnerable to abuses of all kinds. Coverage for abuse and molestation should be included in your assisted living facility insurance portfolio. This coverage protects the facility not only against actual cases of abuse, but also offers legal help to those facilities that may be wrongly accused of abuse. This coverage is not included under a standard Commercial General Liability policy, as intentional acts are excluded from coverage. While it may be included under some package policies for care facilities, it may need to be purchased separately in some cases. Board of Directors Many assisted living facilities are run by a board of directors. As such, the board members themselves may be subject to scrutiny on a personal level due to decisions made as a board member. Directors and Officers Liability (D&O) insurance should be in the portfolio of any company...
Why Has the Price of D&O Insurance Increased?

Why Has the Price of D&O Insurance Increased?

As a result of the recent recession, it seems that the price of everything went up: gas, groceries, interest rates, you name it. We’re paying more for everything. In this increasingly litigious society, many lines of insurance have increased, but none more than Directors & Officers (D&O) Liability Insurance.  Have you ever wondered why? We did, so we did some checking around to find out why.   Directors & Officers Is Important Coverage D&O is often the most overlooked type of coverage.  Other lines of coverage like liability and property cover tangible things like slips & falls or a building lost in a fire. What does D&O cover?  Decisions. D&O is also called Professional Management Liability because it covers decisions made by board members, company owners and officers, and even upper management.  The decisions of these leaders can make or break the success of a business, but those leaders shouldn’t be held personally responsible for any fiduciary losses.  That is why D&O coverage is so important.   The Mortgage Bubble Burst Between 2008-2010 a number of banks, mortgage loan companies and other lenders were accused of predatory loan practices, leading to what is known as the mortgage or subprime mortgage crisis.  Home buyers were assured that the already high-priced homes they were purchasing would increase in value over time, but they didn’t. In addition, the home buyers themselves were purchasing 100% mortgage loans with poor or no credit and when the job market collapsed they found themselves upside down on their payments.  Those buyers had to default on their loans, causing even more financial upset in the home lending...

Does Your Business Need D&O Insurance?

Directors & Officers Liability (D&O) Insurance is perhaps one of the most misunderstood types of insurance coverage, but also one of the most valuable.  D&O coverage is most often associated with large publicly held companies, those with boards of directors and stockholders, but if you think that D&O insurance may not be right for your business, think again. D&O Insurance Isn’t Just For Big Business The very name “directors and officers” may lead you to believe that only large companies with boards of directors and stockholders need this coverage.  That isn’t the case. A 2013 private company risk survey found that D&O lawsuits are nearly as common for private companies like yours as they are for publicly held companies.  In fact, 27% of all D&O lawsuits filed in the past 10 years were against private companies versus 33% of public companies. Most startling:  38% of the D&O lawsuits filed against private companies in the last 10 years weren’t filed by stockholders.  They were employee-related claims.  While EPLI would cover most employee-related claims, company officers who are personally sued need D&O coverage to protect them. You Could Be Held Personally Liable You may think that decisions you and your company officers and managers make during the course of business are covered under the company insurance.  However, commercial general liability policies usually exclude financial consequences due to alleged misdeeds. If a lawsuit is filed against any officers or managers personally, the defendant’s personal assets may be at risk.  Even if the lawsuit isn’t filed directly against company officers, the courts could determine that the officers should be held responsible by piercing the...