Care homes are facing significantly higher insurance premiums now than before the pandemic, putting many at risk of going out of business.
Martin Green of charity Care England stated that some are paying 300 to 400 per cent more than they were prior to Covid-19, reported the Financial Times.
He stated: “Allied to all the other enormous financial pressures, such as energy costs, staffing and a significant increase in the general inflation rate, [these] could combine to destroy many care providers.”
Business insurance is required by care homes to protect themselves against staffing shortages, care, buildings damage and operations.
As there are now fewer insurance providers that offer this protection, those that are can push their premiums up.
Mr Green added: “If you can’t get insurance, you can’t get registered by the [Care Quality Commission] and you have to close down.”
There were more than 20,000 deaths in care homes linked to Covid-19 at the beginning of the pandemic, which concerned insurers that they would incur a surge in claims.
While the NHS received immunity for litigation over Covid-19 from the government, it did not extend this to the social care sector. Consequently, insurance providers raised their prices, despite the surge in claims not materialising.
This could be incredibly damaging for care homes, 70 per cent of which do not feel confident in being able to sustain their business over the next 12 months, according to the National Care Awareness Report.
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