Senior Care Liability Claims Double, Driven by Courtroom Tactics
The cost of senior care liability claims has seen a dramatic increase, doubling in the last decade and reaching an average of $226,028 by the end of 2024. Skilled nursing facilities and other high-acuity settings are experiencing the most significant increases in these claims.
The Rise in Liability Claims: Key Factors
Liberty Mutual’s recent 2025 senior care claims study points to specific courtroom tactics as a major contributor to this surge. The report highlights the use of “reptile theory” by plaintiffs’ counsel, which aims to inflame juries by focusing on perceived negligence, such as understaffing and low employee wages, to circumvent damage caps.
Did You Know? The average senior care liability claim reached $226,028 by the end of 2024, doubling over the past decade.
While some states are considering tort reform to address this issue, the insurance company’s study offers insights into how providers can improve their practices to minimize incidents, claims, and overall liability. The study analyzed 2,500 closed claims reported under Liberty mutual/Ironshore policies over the past 12 years.
Falls, Pressure Ulcers, and Abuse: The Primary Drivers
Falls-related injuries account for the largest percentage of claims, representing 45% of the total. Though, while less frequent, pressure ulcers and abuse lead to higher claims costs. wrongful death allegations were present in 40% of closed claims, considerably impacting claim frequency.
Pro Tip: Consistent and meticulous documentation is crucial for resident assessments, care plans, falls risks, and wound care management.
Specifically, failure to treat or prevent pressure ulcers resulted in 331 claims in skilled nursing, 30 in assisted living, and 1 in independent living. Falls led to 557 claims in nursing homes, 209 in assisted living, and 75 in independent living.
Cost Disparities Across Care Levels
The study reveals significant cost variations based on the level of care provided. Skilled nursing facilities face the highest average claims cost at $210,000 per incident, followed by assisted living communities at $159,000 and independent living settings at $74,000.
These costs frequently enough double when indemnity is involved, due to the expenses associated with mounting a strong defense. The report attributes these disparities to the inherent vulnerabilities of residents in higher levels of care, as well as the increased complexity and expense of defending and settling claims.
Notably, claims related to resident abuse resulted in the highest costs: averaging $568,000 across four claims in independent living, $227,000 across 23 claims in assisted living, and $286,000 across 28 claims in skilled nursing settings.
“The financial liabilities linked to allegations of abuse and elopement are viewed through a lens of perceived preventability, particularly in settings with vulnerable populations,” the report states, emphasizing the importance of regular staff training, safety protocols, and thorough pre-employment screening.
Key Metrics: Senior Care Liability Claims
| Care Level | Average Claim Cost | Primary Claim driver |
|---|---|---|
| Skilled Nursing | $210,000 | Pressure ulcers |
| Assisted Living | $159,000 | Falls |
| Independent Living | $74,000 | Falls |
What steps can senior care facilities take to proactively reduce the risk of liability claims? How can technology play a role in preventing falls and other incidents?
Evergreen Insights: Understanding the Long-Term Trends
The increasing cost of senior care liability claims reflects broader trends in the healthcare industry, including rising litigation costs and increased scrutiny of care quality. As the senior population continues to grow, these challenges are likely to intensify, making proactive risk management essential for providers.
FAQ: Senior Care Liability Claims
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Why are senior care liability claims increasing?
Legal system abuse, plaintiff’s counsel tactics, and focus on understaffing contribute to the increase.
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What is the primary driver of claim volume?
Falls-related injuries account for 45% of all claims.
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which type of facility faces the highest average cost?
Skilled nursing facilities average around $210,000 per incident.
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How do pressure ulcers contribute to claims?
Failure to treat or prevent them results in significant claims, especially in skilled nursing.
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What role does documentation play?
Consistent documentation is critical for resident assessments and care plans.
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What measures can facilities take to reduce abuse and elopement claims?
Regular staff training, safety protocols, and thorough pre-employment screening are crucial.
Disclaimer: This article provides general data and should not be considered legal or financial advice. Consult with qualified professionals for specific guidance.
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