Aon Publishes 2013 Report on Long-Term Care Liability
December 6, 2013 | Aging Services Risk Management
The frequency of general and professional liability claims in long-term care is increasing 2% annually, and the severity is increasing 3% annually overall, reports Aon's 2013 Long Term Care General Liability and Professional Liability Actuarial Analysis. Developed with the American Health Care Association, the report aggregates approximately 15,800 individual nonzero claims from 34 long-term care providers representing about 220,000 beds, analyzes the frequency and severity of claims, and provides estimates of loss rates, or the cost of liability for the beds that care providers operate. Aon projects that for events occurring in 2014, the frequency of claims will be 0.91 claims per 100 occupied beds and annual liability costs will be $1,940 per occupied bed. The average claim size is estimated to be $213,000 per claim limited to $1 million per occurrence.