From the day you opened your doors, you had one thought – to provide residents in your home with quality care. Those residents count on you on their best days and in their darkest moments. Something else happened the day you opened; you and your adult residential care home became exposed to potential risks and lawsuits. Potential risks range from visitor slip and fall accidents, to allegations of neglect, to building and property damage.
These days, all it takes is one significant hazard to wipe out all of your hard work. Having the right insurance in place is the first step to protecting your adult residential care home. Commercial property insurance is one of the most important pieces to your insurance protection plan. Many adult residential care homes skimp on this coverage to save money. That decision can cost them, and you, more in the long run.
Here are three things you need to know about commercial property insurance.
What does commercial property insurance cover?
A commercial property policy provides coverage for the things you own. At first thought, it doesn’t sound like a lot, but imagine standing in the middle of each room in your home. How long would it take to snap a picture of every item in each room? It’s probably not a task you can accomplish in one day.
Now imagine what would happen if, in the blink of an eye, it all disappeared as a result of a fire, hurricane, or theft. How would you pay to replace everything? How would you pay to rebuild your building? How would you pay off the remaining loan?
Commercial property insurance pays to replace your building, all of your belongings inside the building and the remainder of your existing loan if insured properly, if you are insured properly. If not, it could pay a reduced value. Without Commercial property insurance, you would have no way to replace what you need to continue caring for your residents.
What is business interruption insurance?
Business interruption insurance is also referred to as loss of business income. In many commercial property policies it is an optional coverage that often becomes the first place businesses try to cut insurance costs, except in the Liberty Mutual Program PCALIC offers. Before you make that mistake, understand why it is beneficial to your adult residential care home and residents.
Fires, theft, and other disasters are unpredictable. They happen at the least expected moments and can take you from open to close in a matter of minutes. What happens if you have to close because a fire destroys your adult residential care home? How will you pay for your bills? After being forced to close temporarily, business interruption insurance pays you the income you lost until you reopen.
Who can help you?
Contact your insurance agent for more information on a commercial property insurance policy. Double check with the agent to make sure they fully understand what services an adult residential care home provides. Don’t be afraid to ask questions about the policy to avoid any hidden exclusions. If you don’t have an insurance agent for your adult residential care home, contact the team at PCALIC today.