Care homes: Save us from being sued

Protect us against the crippling cost of legal claims – just like NHS, firms urge ministers

CARE home bosses are pleading with the Government to protect them from being sued over outbreaks of coronavirus.

Firms have been hit by soaring insurance premiums, and many still cannot get cover for Covid-19, which could leave them ruined if they are taken to court by bereaved relatives of residents.

The fear of being crippled by legal costs is also making some managers more cautious about allowing visitors in to see loved ones.

But the industry says ministers could easily solve the problem by giving indemnity to social care providers for Covid-related damages, just as they did for the NHS when the pandemic struck.

Professor Martin Green, chief executive of Care England, said: ‘The Government must step in. They need to do it as a matter of urgency because it’s a big issue. If they don’t, it will restrict visits and put some services out of commission.’

Mike Padgham, chairman of the Independent Care Group, said: ‘It would make a big difference to visiting. At the moment, if you get an issue from visits you can’t get covered for that.

‘We feel we don’t get treated the same as the NHS and this insurance issue is a part of that.

‘All we’re asking for is for the Government to stand behind us if we get a claim.’

Care homes are having to deal with added costs and fears over insurance after a year in which they have had to spend massively on PPE, extra staff and building works to make homes safe – as well as losing income from having fewer residents.

All care homes are required by the Care Quality Commission watchdog to be insured against potential claims arising from death or serious injury on their premises, and most have public liability and employer’s insurance cover totalling more than £10 million.

But many have struggled to get cover this year as brokers and underwriters have taken fright at the size of the potential damages arising if the estate of a resident who died from coronavirus brought a claim against a home. Others have been quoted huge increases in their premiums.

Councillors in Lancashire were told last week about one home whose premium had increased by 500 per cent. Mr Padgham, managing director of St Cecilia’s care group in Scarborough, was told his premium would rise from £10,000 a year to £98,000 – but managed to settle for £18,000.

And even those who have paid more have been told they are still not protected against Covid-related claims.

Raj Sehgal, who runs four care homes in Norfolk, said: ‘If somebody was to come into a home and bring Covid in and one of your residents dies, there’s a potential claim. It’s a hard thing to prove but we rely on the insurers to take over. We are not in a position to take over the legality of a potential claim coming in.’

The issue has become even more pressing now that the Department of Health and Social Care has asked councils to find care homes willing to put hospital patients with coronavirus in separate buildings.

The social care sector wants the Government to give it indemnity – covering damages, settlements and legal costs related to Covid legal cases – as it has done for the NHS since the spring.

James Bullion, president of the Association of Directors of Adult Social Services, said it would help the search for places to discharge infectious hospital patients. He said: ‘The easing of the indemnity question would considerably help care homes in cooperating with this process. We don’t at all wish to blame care homes for their natural caution about taking on this particular role.’

The Association of British Insurers said: ‘Insurance remains available for care homes, provided they are well managed and risks are adequately controlled. Insurers and brokers are working with care homes on managing risks as well as possible, as this will increase their chances of getting affordable cover that meets their needs.’

And the International Underwriting Association said: ‘The impact of Covid-19 has, unfortunately, dramatically increased the risk profile of care homes seeking to obtain public liability insurance cover. Many insurers have needed to adjust their premium levels and terms of cover in order to ensure they can continue to provide a service for clients in the long-term.’

Last night the Department of Health said: ‘We are working closely across government, with care providers and insurance representatives, to understand the breadth and severity of the issues, and whether there is any action the Government should take.’

‘It would make a big difference’