A Yorkshire care provider is calling for urgent government intervention after finding it almost impossible to get affordable insurance due to the coronavirus pandemic.
Saint Cecilia’s Care Group says it was quoted up to an 880 per cent increase in insurance premiums to get cover for its care homes in Scarborough.
The company previously paid £10,000 per year but when it came to renew they were quoted £98,000 – an increase of 880 per cent – and £41,000, an increase of 300 per cent.
It was only after a seven-day extension past their renewal date that they finally received a quote for £18,000, an increase of 80 per cent.
Even with the increase in cover premium, the company will not be covered for Covid-19 in the future.
“Our previous insurer, like many others, has stopped offering cover to care providers because the risk is too great,” said chief executive Mike Padgham (pictured).
“Those that are offering cover are charging huge premiums because of the risk involved and because they know that we have to have insurance,” he added.
Padgham said the government should intervene and support care providers because they are effectively being penalised for helping the fight against coronavirus.
“We stood up and accepted discharged patients into our homes from hospitals, aware of the risk but willing to do so to provide care to people with the virus and to keep our provision viable,” he added.
“Now, because of that, we cannot get insurance without paying premiums that will put enormous financial strain upon our business.”
Membership body Independent Care Group, of which Padgham is chairman, has written to the government asking it to indemnify care providers against insurance claims that might be made over residents who die from Covid-19 while under providers’ care.
The call is supported by Care England. “It is imperative that the government considers what policy mechanisms and guidance are at its disposal to support the frontline for example the indemnification of the sector and local support strategies,” said chief executive Martin Green.
“With care homes being under such immense financial pressure at the moment this could spell catastrophe,” he added.
