In your senior living communities, it is important to address potential liabilities that can rise from partnerships with external vendors and service providers. Third-party risk exposure in senior living not only impacts the lives of your residents, but also the quality of care, data security, and overall operational integrity of these facilities.
Identifying risk
Whether through contracted services, technological use, or unpredicted incidents, the third-party factors that can impact your senior living operations range from external to internal:
- Medical equipment failures: Injuries or death resulting from leased medical equipment failure, such as malfunctioning oxygen machines, could result in general liability claims.
- Auto accidents: Senior living facilities may outsource a transportation service. In the event of an auto accident, this may lead to non-owned auto claims.
- Vendor liability: Contaminated food from providers or wet floors from janitorial services open the possibility of general liability claims.
- Lack of properly maintained generator power: Generator maintenance vendors might not be hired by the facility or may be negligent in their maintenance. A lack of operational backup generator power during power outages can lead to safety risks and create liability issues. This is especially apparent in hot climates after events such as hurricanes, where a lack of air conditioning can lead to heat related illnesses or death. This could lead to various general liability, property, or business interruption claims.
- Data breaches: Third party IT vendors may experience data breaches, resulting in cyber liability claims.
- Abuse from healthcare providers: Abuse from any healthcare provider contracted by senior living facilities could result in general liability claims.
Taking care of your staff and residents
Integrating third-party systems and services is an essential part of operational efficiency for your senior living community. While a necessity, contracting third parties creates potential exposure. Acknowledging, assessing, and acting helps minimize your risk and stay proactive to address potential third-party exposures.
To find out how you can stay proactive to minimize risk in your senior living community, please reach out to an MMA senior living specialist to explore your options.
