The Rising Cost of Claims

Running a care home comes with unavoidable risks. From safeguarding allegations to staff injuries or slips and trips, claims against providers are not only becoming more frequent but also more expensive. Recent market data shows a sharp rise in the average cost of liability claims, which has a direct impact on both your premiums and your reputation.

At Quality Care Group, we see first-hand how a single incident can escalate. A relatively minor accident can quickly turn into a large financial claim if evidence, documentation, or procedures aren’t watertight.

“For care home owners, the key is being proactive rather than reactive.”

Why Are Claims Rising?

Several factors are driving costs up:

• Higher compensation awards – Courts are awarding larger settlements, particularly in cases involving vulnerable individuals.
• Regulatory pressure – The Care Quality Commission (CQC) is scrutinising governance and safeguarding more closely than ever.
• Social media amplification – Complaints and incidents can spread quickly online, attracting unwanted attention and sometimes fuelling claims.
• Staff shortages – Understaffing increases the likelihood of accidents and missed procedures.
• Reliance on agency staff – Transient workers may lack familiarity with specific procedures, have less loyalty to the business, and may not receive the same level of ongoing training as permanent staff.

What Can Care Homes Do?

Strengthen Documentation

The best defence in any claim is a strong paper trail. Incident logs, safeguarding records, risk assessments and training documentation should be up to date and easily accessible.

Manage Reputational Risk

Reputation is one of a care home’s most valuable assets. A clear crisis plan avoids confusion when issues arise, safeguarding transparency builds trust with families and regulators, and sharing positive news ensures one negative story doesn’t define your home. You can read more about this in our reputational risk & media scrutiny guide.

Invest in Staff Training

Frontline staff are your first line of defence. Regular refreshers on moving and handling, safeguarding, and reporting processes can dramatically reduce the risk of incidents escalating.

Carry Out Risk Audits

An independent risk audit will highlight gaps in governance, premises safety, or HR practices. Addressing these before a claim arises is far cheaper than reacting after the fact.

Review Your Insurance Cover

Many care providers are unknowingly underinsured or have gaps in their cover, particularly around abuse allegations, management liability, or cyber incidents. A policy health check ensures you’re not left exposed.

A Real-World Example

One provider we recently supported faced a claim after a resident fell and fractured a hip. Thanks to robust training records, risk assessments, and a clear incident response, the claim was settled quickly and at a much lower cost than anticipated. Without that preparation and the financial and reputational damage could have been severe.

The Bottom Line

The cost of claims isn’t just about money, it’s about your ability to continue delivering quality care without disruption. By taking proactive steps now, you can reduce the likelihood of incidents, protect your reputation and keep premiums under control.

For a free risk audit with me, Risk and Claims Manager, Jade Concannon, please complete this quick form.