The Mississippi Supreme Court has upheld a lower court’s decision that a nursing home operator is responsible for $701,153.54 in claims expenses under a high deductible nursing home malpractice insurance policy they purchased from Lloyds of London. It was also upheld that the first named insured on the policy, Southern Healthcare Services Inc, was responsible for the deductible on claims against the bankrupt companies who operated the nursing homes against whom the claims were brought. Daleson Enterprises, LLC operated Jones County Rest Home in Ellisvill and Medforce Management, LLC operated Willow Creek Retirement Center
The case brings to light the issues that come with not reading the fine print. The insured claims they believed they were purchasing a $25,000 deductible when they were actually delivered a policy with a $250,000 per claim retention eleven months after the effective date.
ProtectNursingHomes.com is working with it’s carriers on “contract certainty” – making sure the terms of the contract are clear and in writing to all parties on the effective date of the policy.