Buyer Beware Bulletin Liability Insurance 2017

As we approach the 2-year anniversary of the CA-AB1523 liability insurance law, it is a good time for a Buyer Beware bulletin.

BEWARE of agents who require you to sign a letter to get competitive quotes. Seeking competitive quotes is smart, but don’t fall for the “sign here” ploy. You should not have to sign anything to get a competitive quote for your liability insurance renewal. Save your signature for a firm commitment once an agent has offered the best combination of low-premium and high-quality customer service. You want to be aligned with ethical partners in business who are responsive to your needs.

It is standard practice for insurance companies to send you a renewal quote 3-5 weeks prior to renewal. Call your agent if you have not received a renewal quote 3 weeks prior to your policy expiration.

Amy McNamara

General Manager

CA Lic#0L26522

Sierra Professional Insurance Services

SPI Specializes in Liability – Commercial Property – Worker’s Comp

Save money with the best coverage to protect your business. Free quotes at


RCFE Liability Insurance – What you should know before buying or renewing 2017

What you should know before buying or renewing your liability insurance policy:

  • Does the insurance agent charge more if you do not obtain an insurance quote through their website?
  • Does your insurance agent charge more for your insurance policy for any phone contact with the agent?
  • Does your insurance policy provide $1m of coverage for elopement or bed-ridden?
  • Does your policy have a limit of number of bedridden residents?
  • Does  your facility property insurance allow RCFE or DD operations?
  • Does your insurance agent help your business with safety training and approved RCFE/ARF continuing education credits?

Eldercare Training Academy and Sierra Professional Insurance Services have developed a liability insurance compliance chart with side-by-side comparison of liability insurance coverage, benefits, and annual premiums.   Liability Compliance Chart and Best Premium 2016

Eldercare Training Academy will provide up to 4 hours of RCFE/ARF CEU’s for Sierra Professional Insurance facility policy holders as part of their safety program.  Topics will include:

  • Dispute Resolution
  • Reduce the risk of a claim
  • How to read and understand your insurance policies
  • Property, auto, worker’s compensation, surety bonds and more

Sierra Professional Insurance    775-298-7273




CCLD Enforcement for Required RCFE Liability Insurance

Community Care Licensing has begun to enforce RCFE facility compliance with Liability Insurance which includes the following:

Proof of Liability Insurance Requirements

  • All RCFE facilities shall maintain proof of liability insurance at the facility.  (Declaration page of certificate of insurance)
  • All RCFE facilities shall submit to their LPA proof of liability insurance (newly obtained, renewed or revised policy)
  • New facility applicants shall submit proof of insurance within 60 days of licensure

LPA facility visits  (routine or complaint)

  • LPA will cite licensee who do not provide proof of insurance at time of site visit
  • Citation is considered either type B or C depending on the level of risk the violation represents
  • Civil penalties shall be assessed when the licensee fails to correct the violation
  • If cited for non-compliance, the facility will have 30 days to correct

RCFE Liability Insurance Comparison Chart                                                                                                                                                                   For RCFE insurance quote contact:  Sierra Professional Insurance @ 775-298-7273


Liability Insurance Required for RCFE by July 1, 2015

AB 1523

Requires all RCFEs, except those facilities that are an integral part of a continuing care retirement community, to maintain liability insurance covering injury to residents and guests, caused by the negligent acts or omissions to act of, or neglect by, the licensee or employee, in an amount of at least $ 1 Million per occurrence and $3 Million in the annual aggregate.  Eldercare Training Academy has partnered with Sierra Professional Insurance to provide information on the new insurance regulations.  Sierra Professional Insurance can provide each facility with an estimate and quote for the required coverage.  In addition, Sierra Professional is offering several incentives to facilities and will be sponsoring Eldercare Training Academy continuing education courses on the best practices for dispute resolution for  RCFE facilities.  For more information contact Dave Wertzberger at  408-623-2255 (cell) or 888-443-6856 (Toll Free fax)



RCFE Liability Insurance Requirements July 2015


Requires all RCFEs, except those facilities that are an integral part of a continuing care retirement community, to maintain liability insurance covering injury to residents and guests, caused by the negligent acts or omissions to act of, or neglect by, the licensee or employee, in an amount of at least $ 1 Million per occurrence and $3 Million in the annual aggregate.

Facility owners with an existing liability insurance policy must check to see if the policy is complaint with AB 1523 by July 1 2015.

To verify a RCFE  liability policy meets the new requirements email for a compliance checklist.



Learning About RCFE Required Insurance

There is a misconception “that” homeowners insurance is sufficient coverage for a six bed capacity residential care facility.  Nothing could be farther from the truth!  If there was a claim, “based on RCFE business activities”, on a traditional homeowner’s policy, it would be categorically denied.  All RCFE facilities need to acquire Commercial Insurance for their “business liabilities.”  Commercial insurance covers: “property (building, contents, business income as well as general and professional liability.”   Learn more about RCFE insurance requirements and obtain continuing education credit at the same time.  Contact Eldercare Training Academy for a continuing education class in your area with a guest speaker on RCFE required insurance.  800-585-6556


Employee vs. Independent contractor in a RCFE

The characterization of whether an individual is an independent contractor or employee is based upon what is actually occurring not what is written in a contract. The substance of a relationship (reality) will prevail over the form (the contract). The Courts weigh a series of factors in making this determination, the most important of which is the actual control exercised over the individual. The ramifications of a mischaracterization can be very large as an employer is mandated to withhold and pay employment related taxes, cover employees for such things as workers compensation, unemployment, disability, and the like. Employers have also been found liable for failing to pay for health insurance with employer-based policies and failing to make pension contributions for them. If you would like a checklist to evaluate whether your workers are employees or independent contractors, please e-mail Stuart Furman, Esq. at or call at 877-820-3335.