A nursing home’s ability to pay for abuse, neglect, and injury claims often comes down to whether it has sufficient insurance coverage. If a resident suffers from abuse or neglect, their claim usually goes through the nursing home’s insurance policy. However, if the nursing home has no insurance or has already maxed out its coverage limits, claimants might get less money than they deserve or even nothing at all.
If a nursing home has no or insufficient insurance coverage, families must rely on whatever assets the nursing home has, which might not amount to much. That’s why it’s important to understand a nursing home’s insurance situation before waiting too long to take legal action.
Nursing Homes Are Not Required to Carry Insurance Under Pennsylvania Law
Families often assume that businesses like nursing homes must have liability insurance, but that’s not always true. Pennsylvania law does not require nursing homes to carry insurance. That means some nursing homes operate with no coverage at all. Others buy only limited policies that run out quickly. If the money from a nursing home’s insurance runs out, those with new claims can be left with nothing.
Since state law doesn’t require nursing homes to purchase coverage, residents and their families must act quickly when claims arise. If you wait, you might find out too late that there’s nothing left to collect.
Annual Policy Caps and Eroding Coverage
Most nursing home insurance policies only cover a set amount each year. Some policies pay up to a certain limit, then stop. Others have coverage that shrinks with every payout. These are called “eroding” policies. With an eroding policy, there’s less money left for each new person who files a claim.
In some cases, homes start with millions in coverage, but only a fraction remains when later claims come in. At Ainsman Levine, LLC, we’ve seen policies start at $3 million but drop to $450,000 after just a few settlements. If you wait to file, you risk missing out because the available funds might already be gone.
What Happens If a Nursing Home Has No Insurance or Self-Insures?
Some nursing homes try to handle claims on their own. This is called “self-insuring.” Others let their insurance policies lapse to save money. In these cases, there may be no insurance policy to pay claims, and families must try to collect from the home’s assets. However, many self-insured homes don’t have enough cash to cover large claims. As a result, they might delay, avoid payment, or even shut down to dodge responsibility. Without a real insurance policy, the home may offer very little or nothing at all.
The Role of Bankruptcy in Avoiding Payouts
Our attorneys have seen some nursing homes file for bankruptcy to avoid paying claims. Once they file, claims against them hit a wall. This is because bankruptcy law gives filers legal protections against claims, even legitimate ones. Some nursing homes use this move to manage costs and limit what victims can collect. If you wait too long to file your claim, you might have limited options to recover money. Swift action gives you a better shot at getting paid before that happens.
Why Timing Is Critical: First Come, First Served
Nursing homes and their insurers don’t keep endless funds ready for victims, and some nursing homes have no insurance at all. If several people file claims, the first ones often get paid, and the rest get what’s left, which might not be much.
You do not want to be last in line with your claim, and waiting even a few months could make a big difference. The sooner you act, the more money may be available to cover your losses. Filing a claim quickly can protect your chance to collect what you deserve.
Contact a Pennsylvania Nursing Home Lawyer Today
If you or your loved one has suffered harm in a Pennsylvania nursing home, contact Ainsman Levine, LLC, today for a free consultation. We can review your situation and take steps to protect your claim before time and money run out.
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