DAY CARE–ADULTS

Category: Service

SIC CODE: 8322 Individual and Family Social Services

NAICS CODE: 624120 Services for the Elderly and Persons with Disabilities

Suggested ISO General Liability Codes: 40005, 40006

Suggested Workers Compensation Codes: 8829, 8824, 8826

Description of operations: Adult day care facilities provide respite services for family members who care for elderly or disabled adults. They provide a safe environment, companionship, food, and planned activities. Prescribed medication can be administered but most facilities do not have staff nurses. These facilities do not provide overnight stays.

Property exposures include an office, kitchen, and activity rooms. Ignition sources include electrical wiring, stoves for cooking, and heating and air conditioning equipment. All wiring must be up to code. Overriding circuit breakers and fuse boxes should not be allowed. The high volume of paper, craft supplies, and other items contribute to the spread of fire. Wood and/or plastic furnishings increase the fire load. Most equipment is susceptible to and easily damaged by fire. Food preparation is generally limited to stovetop or microwave cooking, but any cooking increases the potential for fire loss.

Crime exposures are primarily from employee dishonesty. Hazards increase without proper background checks. All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Receipts should be issued for any cash payments received. Bank deposits should be made on a timely basis to limit the buildup of cash on premises. Audits should be performed at least annually.

Inland marine exposures are from accounts receivable, computers, and valuable papers and records (client records). Duplicates of all data should be made and stored off premises. Certain types of mobile equipment may be taken off premises for various activities.

Premises liability exposures are extremely high when vulnerable adults are involved. Staffing must be sufficient for adequate supervision. Evacuation drills should be conducted regularly. Procedures should be posted that address all emergencies, with staff members trained in their use. References for all employees and volunteers must be verified, including criminal background checks. Access to the building must be limited during operating hours to keep clients from wandering away. All equipment used for physical activities should be inspected regularly to prevent collapse and injuries. Written policies must be established that address when a client is too ill to attend and when the facility will contact caregivers or medical emergency providers in case of illness or an accident.

Abuse and molestation exposures must be considered when supervision of vulnerable individuals is involved. Abusers are never covered under the policy. While there is some coverage for the facility where the abuse takes place, it is very limited. More complete coverage should be purchased from specialized markets. The facility is responsible for taking all possible care to protect its clients from predatory staff members through background checks, monitoring, and supervision and by reporting all allegations of abuse to the proper authorities. The facility must also adequately supervise clients to prevent one client from abusing or molesting another. The more vulnerable the potential victim, the more vigilant the facility must be.

Automobile exposures are a major concern and the potential for loss or injury is high if the facility transports clients to and from their home to the facility or to off-premises activities. All drivers must have the appropriate license for the type of vehicle used to transport clients. Appropriate supervision should be provided when disabled clients or those with dementia are transported. Motor Vehicle Reports (MVRs) on all drivers must be checked regularly. All vehicles must be properly maintained and maintenance records kept at a central location.

Workers compensation exposures from back injuries, lifting, hernias, sprains, strains, slips and falls can be high, along with exposure to communicable diseases. All employees should have up-to-date immunizations to prevent the spread of communicable diseases. Cognitively challenged clients may become confused and unruly and can injure employees by biting, hitting, and pulling hair or earrings. Employees should be trained in how to deal with them and have access to emergency numbers in case of problems. Unauthorized visitors can pose a threat to employees as well as clients.

Minimum recommended coverage:

Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Professional Liability, Business Auto Liability and Physical Damage, Hired and Nonownership Auto Liability, Workers Compensation

Other coverages to consider:

Building, Forgery, Computer Fraud, Mobile Equipment, Employment-related Practices Liability