Coronavirus: ‘Colossal’ insurance costs threaten to make care homes ‘go out of business’

A lack of insurance cover for the coronavirus and rising insurance renewal premiums are threatening to put care homes ‘out of business’, care leaders warn.

Mike Padgham, managing director of St Cecilia’s Care Group and chair of the Independent Care Group (ICG), which represents care homes, says his premium has skyrocketed.
Care home director faced 880% rise
Mike Padgham had a 880 per cent increase on his insurance premium, when compared to what he paid last time. He had previously paid £10,000 but his quote for renewal was £98,000.
“I do have some sympathy with the insurance companies because they’re worried about the risk, which is why I want the government to step in and help the industry.
“We stood up and accepted discharged patients into our homes from hospitals, aware of the risk but willing to do so to provide care to people with the virus and to keep our provision viable.
“Now, because of that, we cannot get insurance without paying premiums that will put enormous financial strain upon our business.