Senior Care Claims Have Doubled — Here’s What Nursing Home Operators Must Do Now!
The cost of risk in senior care is rising — fast. According to Liberty Mutual’s 2025 Senior Care Claims Study, the average indemnity payment has more than doubled in the last decade, driven by aggressive legal strategies, chronic understaffing, and gaps in safety protocols. Long term care facilities and nursing homes face unique challenges that contribute to these increasing risks, making effective risk management essential. Findings include:
- Average claim cost skyrocketed to $226K in 2024 — more than 2X the cost from 10 years ago.
- Over 40% of closed claims involve wrongful death allegations.
- Fall-related injuries make up 45%+ of all claims. Fall prevention is a critical component of risk management in skilled nursing facilities and long term care facilities.
- Pressure ulcers, elopements, and abuse are less frequent but far more financially severe.
These claims expose operators to significant potential liabilities, underscoring the importance of ensuring compliance with regulatory standards to minimize risks.
Diligent risk management processes and programs are important to protecting your reputation, patient referrals and of course, your profitability. Launch a corporate-wide review of your risk management strategies today, with a focus on proactive risk management to address these unique challenges. When partnering with insurance companies and brokers, prioritize those who provide effective tools for risk management. The Liberty Mutual study offers valuable insights for operators seeking to strengthen their approach.
The Rise of the Risk Manager
Not having an active risk management strategy is like playing roulette—you may be fine, then again you may be devastated with just one claim. Risk managers play a critical role in protecting patient safety and the community’s safety by implementing comprehensive risk management strategies. When your team is ready, here are some risk management next steps:
- Expand your conversations with your insurance companies and brokers. They do not want to see claims, either. You are aligned in the risk reduction mission. Only partner with insurance teams that provide robust risk management support. If you’re in a captive model, read more below.
- Hire risk management leadership or a consultant to drive this strategy on a disciplined, daily basis.
- Review your staff training and education programs to include risk management strategies such as falls prevention, documentation, infection control, clinical care, and emergency preparedness. Risks happen, many times documentation does not happen.
- Add or expand your risk management software. SNF Metrics’ Risk Suite is a cloud-based workspace to easily capture all risks, communicate, document, and trend your risk plan. Risk Suite supports thorough risk assessment and helps regularly review safety measures and potential hazards. It includes a risk tracking application, rapid response tools, legal claims management and even worker’s compensation, along with a full suite of live risk management analytics.
Need help on how to get started? We’re here to help.
A strong risk management program in senior living communities and health care settings leverages proactive strategies and preventive measures to improve resident care, care outcomes, and patient safety. These programs also ensure compliance, operational resilience, and foster a culture of safety.
To help SNFs manage and mitigate this growing risk, we’re launching a new series breaking down each threat area and how SNF Metrics can help you stay ahead. As risks evolve in health care and senior living facility environments, ongoing decision making and adaptation are essential to maintain safety and compliance.
Explore the series:
- Legal System Abuse: What Every Operator Needs to Know
- Falls in Senior Care: The Leading (and Most Preventable) Cause of Claims
- State-by-State Breakdown: Where Risks — and Lawsuits — Are Highest
- Pressure Ulcers: High-Cost Mistakes from Poor Documentation
- The Power of Documentation: Your First Line of Defense
- Wrongful Death Allegations: The Risk of Doing Nothing
- Abuse & Elopement: How Safety Gaps Lead to Million-Dollar Claims
We’ll cover each of these topics in detail in the weeks ahead. Stay tuned — or get ahead by scheduling a walkthrough of our Risk Management Dashboards now. As you strive for exceptional care, remember the importance of regularly reviewing risk assessment processes to ensure your community’s safety.
Medication Errors: A Hidden Risk in Senior Care
Medication errors are a real problem in senior care. They happen more often than most people think, and they can seriously hurt residents. Senior living facilities face growing complexity in care, which means more chances for things to go wrong with medications. You need solid risk management strategies to protect residents, stay compliant, and keep your facility financially stable.
Build a risk management plan that gets ahead of medication errors. Run regular risk assessments to spot weak points in how you handle medications. Train your staff continuously on safety protocols and what works. Create a culture where everyone knows the risks and takes responsibility. This approach stops problems before they hurt residents.
Stay on top of regulatory requirements. Your medication management practices must meet industry standards, period. Make sure every staff member understands what can go wrong and what it costs. Review and update care plans regularly. Run quality improvement initiatives. These steps help you catch and fix new risks as they emerge.
Electronic medication management systems work. They cut down on errors by streamlining documentation and improving communication between care teams. They send real-time alerts that prevent mistakes. Investing in this technology shows you’re serious about resident safety and creates a more secure environment.
Communication drives effective risk management. Talk openly with residents, families, and healthcare professionals. Make sure care plans fit each individual and address risks quickly. This collaborative approach protects residents and reduces your liability exposure while supporting your bottom line.
Protect yourself financially with strong insurance coverage. Get general liability insurance and property insurance. Run internal audits and regular risk assessments to find areas that need improvement. Build actionable plans to address specific risks you identify.
Preventing medication errors takes a proactive approach that puts resident safety first. Invest in staff training, smart technology, and continuous improvement. This protects lives, keeps you compliant, and builds long-term success in senior living.
