As of late, the natural disasters in the United States seem to be supercharged, with each storm more deadly, devastating, and costly than the next. For long-term care and assisted living facilities, the risk is especially great because so many lives are under care and often times spread across multiple sites.

Q: Where do I begin my disaster plan?

A: The elements of a well-defined plan will address the following elements and considerations related to an evacuation situation: food; medication; offsite shelter arrangements; transportation for both ambulatory and non-ambulatory residents; patient identification system; communication tools for the recovery team; a communication plan for contacting patients’ family; staffing pool and accommodations; command center for the recovery operations. These are just a few examples of the many considerations in preparing for a disaster. A complete plan would also include shelter-in-place protocol and the responsibilities of each team member on the disaster recovery team.

Q: How will my sublimits and policy exclusions impact my recovery?

A: A sublimit places a maximum on the amount available to pay that type of loss. For example, under a commercial property policy with a $200 million blanket limit applicable to loss from all other causes, there may be a $100,000 sublimit on coverage for loss from flood, and a debris removal sublimit of 25 percent of the direct damage loss amount. It is critical that you understand what the sublimit is for evacuation response expenses, business interruption, and remediation. Also, know what officially triggers the evacuation – depending on policy structure sublimits may only apply at the insured’s discretion (i.e. evacuation when safety of patients is at risk) or the discretion of an official governing body (i.e. the state, the county, the national weather service). Also, be aware of what your policy excludes – and the breadth of those exclusions. A flood exclusion is much less broad than a “water” exclusion and can change recovery by dramatic amounts.

To learn more about maximizing coverage before a disaster strikes, contact the Health & Human Services Division at 1-888-472-4262 or [email protected]. Or, read a more detailed article on this topic in the Knowledge Center.