Managing Risk & Insurance Costs for Adult Day Care Facilities

Opening an adult day care center is a worthwhile pursuit, as owners help family members of disabled or aging relatives meet their obligations. Overall, adult day care leads to a more balanced life for everyone involved. Due to the aging population, this is a growing industry and there has been a 35-percent increase in facilities since 2002, with over 260,000 participants served. The cost for Adult Day Care Services are rising too. According to the blog INSURANCEFORNONPROFIT.NET New York leads the way at an average cost per month of $1,950 a month; New Jersey is second at an average cost of $1,842.00. Still, there are shortages in the industry and, in fact, 29 percent of current adult day care facilities have waiting lists. Overall there is a lot of urgency for these businesses, but entrepreneurs should review vital criteria to do things properly, protect themselves and their businesses,  managing  risks properly to keep unnecessary costs low.  

Risk Management for Adult Day Care

Adult Day Care Business Information

Though customer base in adult day care are diverse, with differences in ages and abilities, the typical participant is 65 or older. They frequently suffer from dementia or a physical disability that require constant care or assistance with activities of daily living (ADL) which puts pressure on the Adult Day Care staff.

Because this is a thriving industry and communities need these services, there are many excellent resources available, and these include grants for startup funds and both state-level organizations and National Adult Day Services Association (NADSA). State leaders can provide a lot of detailed information about rules and regulations for each specific state, and NADSA offers mentoring and networking opportunities and a library of useful information as well as a community listserv and discounts for products needed for the business.

Strategic Partnerships Yield Lower Insurance Costs

When starting an Adult Day Care facility or program it’s best to build strategic partnerships with experts in the field so your mistakes and education won’t be so expensive. Doing it right from the outset is far less costly then getting it wrong. Correcting the issues will require the Adult Day Care director to re-engineer & re-train; at a cost. In fact, according to John Hague, a Risk Advisor at Metropolitan Risk in Irvington, NY, “Setting detailed internal policies and training protocols with your Adult Day Care staff will pay huge dividends as your Adult Day Care facility and staffing levels grow into the company’s safety manual and reduce or eliminate some of the growth challenges adult day care businesses face.”

Adult Day Care Growth and Workmen’s Compensation Insurance 

As the business grows and employees are added, having an expert risk management professional to discuss business insurance needs and workmen’s compensation challenges will focus the business on containing costs and using the right resources to help them grow the business while controlling the risk related costs that ultimately rise is such a risk laden industry.

Though starting an adult day care facility is not a simple task, it can be a very satisfying one as lives are changed for the better due to the services provided. Further, keeping an adult day care center profitable has its challenges, but taking advantage of the many resources available to adult day care center owners can make the difference between success and failure. Additionally, assessing and addressing risks in advance with someone knowledgeable and committed to the business’s success guides the business to success as well.

Due to the high labor component in the Adult Day Care space employee injuries can really drive costs. Unexpected worker’s compensation claims can be an extremely expensive lesson for a business owner not prepared for or anticipating it. According to John Hague at Metropolitan Risk, “ time spent on the up front training, educating and monitoring new and existing employees through a tight HR process can lower the cost of the inevitable employee injuries by up to 40%.” Speaking with a Risk Advisor specializing in adult day care facilities will yield substantial future dividends.  They can offer real solutions for adult day care workmen’s compensation, general liability or commercial auto insurance  as well as  other risk challenges . Don’t simply buy insurance. Focusing on risk management practices should be on the owner’s checklist of vital tasks to handle before the very first participant enters the adult day care center. More questions? Reach John at (914) 357-8456 or CLICK HERE.


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