AGENCY: DEPARTMENT OF SOCIAL SERVICES BOARD: STATE BOARD OF SOCIAL SERVICES CHAPTER: STANDARDS FOR LICENSED ASSISTED LIVING FACILITIES (22VAC-40-73) ACTION: MINIMUM LIABILITY INSURANCE FOR ASSISTED LIVING FACILITIES EMERGENCY REGULATIONS FOR LIABILITY INSURANCE FROM THE INDEPENDENT HOMEOWNERS We represent the small minority residential/assisted living homes that serve the mentally ill and the poor who receive auxiliary grant funding. We are finding it exceedingly difficult to find liability insurance for homes that are licensed for 8 to 25 beds. Your tier system is not recognized by insurance companies as there is no $250,00 insurance policy. Insurance companies are not interested in coverage less than (1) one million dollars. As small business owners this represents a hardship. Unlike private assisted living facilities, we are unable to pass this cost on to our residents. And our current funding source (auxiliary grants) has not increased to bear the additional cost. We are concerned that this additional cost could impact the quality and scope of the services we provide. We are different from nursing homes, rehabilitation facilities or convalescent homes. Assisted living standards state that we are to work within the scope of our license. We are a minimum care facility that went from board and care to assisted living. When this change occurred the insurance companies dropped coverage for small, assisted living homes throughout the State of Virginia. Now small businesses are being priced out of business by the insurance companies. The state is also failing to make the proper adjustments and funding to pay for this. As you research your records over the pass few years you will find that small minority homes have gone out of business based on changes in the assisted living standards and regulations. We are seeking a variance for small minority homes (8-25) beds to carry liability insurance as it presents a burden and hardship to the licensee’s which in turn impacts the individuals we serve. We have too many homeless citizens living on the street. This is unfair to them as they continue to need our assistance. Cc: kristoper.drew@dss.virginia.gov
