The fear of lawsuits related to the COVID-19 is to flee the insurers who refuse to renew coverage for owners of seniors homes or take on new clients.
An owner of residences for seniors has recently seen his insurance terminated and hit a wall of refusal when it has approached key players in the industry.
The eight insurers contacted by the broker are either denied outright or offered to take care of only a small percentage of the risk.
Some even spoke of a “moratorium” on new clients.
No coronavirus yet
“I’ve never seen it. There is not even proposals!” said the owner who requested anonymity. However, its residences have not been affected by the coronavirus, he swears.
Photo courtesyYves Desjardins
Grouping residences seniors
In that time, his property is, therefore, no coverage at all. “I don’t have insurance for civil responsibility, fire, theft, nothing!”, lance-t-il.
The Regroupement québécois des résidences pour aînés, there are concerns about the situation. “We have been informed of several cases of residences that were denied a renewal of civil liability insurance of directors and officers”, confirmed its chairman and ceo, Yves Desjardins.
“This situation is very worrying, especially as this insurance coverage is required by the Regulations on the certification of private residences for seniors,” he adds.
This is that insurers are afraid of class actions in the wake of the many deaths caused by the COVID-19.
In the industry, we expect to see premiums climb sharply to ensure the residences, increases generally recycled back to the tenants.
A Industry cautious
For its part, the insurance Office of Canada recognizes that the current situation may push some of its members not to take new clients.
“The risks they already have and that they agree to keep are already the biggest, that at the moment they have subscribed, but they still want to keep them,” explains director of communications, Pierre Babinsky.
“It’s going to get an insurer to take a new risk,” he continues. But, generally speaking, in the current context, it is actually more difficult than it was six months or a year ago. This, indeed, has been observed.”
Class action lawsuits against homes
- CHSLD Herron: $2 Million
- CHSLD Sainte-Dorothée: $13 Million
- Company Revera in Ontario: $50 Million
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