Insurance costs can make or break a senior living facility’s bottom line, yet many continue to approach their coverage in ways that cost them dearly. With healthcare expenses climbing and liability concerns mounting, effective risk management has never been more crucial. Scott Reese, founder of Echo Assurance, brings nearly two decades of specialized experience working with long-term care facilities to address this challenge. After placing nearly $2 billion in insurance premiums throughout his career, Scott identified systemic problems in how facilities handle their coverage.
Stop Just “Shopping Policies”: Start Strategizing
Scott doesn’t mince words about what he’s seen. “Most facilities are handling insurance completely backward, and it’s costing them significantly,” he says. The biggest mistake? What he calls the “spray and pray approach”. Every year, facilities and their brokers shop around for the best policy price, hoping for a good deal. Scott shakes his head at this practice. “Insurance isn’t just a commodity to be purchased at the lowest price. It’s a strategic asset that needs proper planning.”
The constant switching creates problems most facilities don’t see coming. Instead, Scott pushes for something different: commitment. “By staying with one carrier for multiple years, you’ll build profitability or what Scott calls “Bank” with that carrier,” he explains. This relationship-building pays off when the inevitable happens – a claim. With established carriers, your loss won’t immediately trigger massive rate increases because you’ve built that goodwill through years of partnership. There’s a stability benefit too: when facilities think long-term, they position themselves for better coverage and more predictable premiums, even during the market’s ups and downs.
Deploy Risk Management To Prevent Claims
Scott doesn’t just fix insurance problems – he wants to prevent them. His second point gets straight to business: “The most expensive claim is the one that doesn’t happen in the first place.” This isn’t just talk. Scott breaks down exactly where facilities should focus: “The three most common losses in senior living and long-term care communities are resident falls, medication errors, and elopement/wandering incidents.”
These aren’t random targets. These specific problems drain resources and drive up insurance costs across the industry. Tackling them head-on doesn’t just protect residents – it makes financial sense. When facilities implement targeted prevention, insurance companies notice. “Deploying that message in your renewal submission upfront will gain you a lot of positive results in the underwriting process,” Scott points out. It’s a simple truth: show insurers you’re serious about prevention, and they’ll be more serious about offering you better terms.
Leverage Data To Negotiate Like A Pro
Scott’s third point might be his most valuable. Insurance negotiations shouldn’t be a guessing game, but that’s how many facilities approach them. “When negotiating with underwriters, bringing the right data makes all the difference in the world,” he insists. Too many facilities simply fill out standard applications without showing their true risk profile. Scott’s solution? Get professional help measuring your risk. “Work with an actuary annually so you can better understand what your total cost of risk is,” he advises. This investment gives facilities hard numbers to work with – both for internal planning and insurance negotiations.
With this data, facilities can evaluate different retention points and make informed decisions about their coverage. More importantly, it changes the dynamic with insurers. “This helps you help the underwriter understand your premium target goals and why your ask is defensible,” Scott explains. It’s about turning a typically one-sided conversation into a partnership backed by facts.
Scott’s message boils down to something surprisingly hopeful. “You’re not powerless when it comes to insurance costs. You just need the right approach,” he says. The right strategy goes beyond saving money – it creates safer environments for residents and staff while protecting the business itself. Through Echo Assurance, Scott continues putting these principles into practice, helping facilities break out of costly insurance cycles. It’s not revolutionary – it’s evolutionary! Just smart business that too few companies have embraced.
Follow Scott Reese on LinkedIn to explore more ways to improve your facility’s insurance strategy.
