DE SB 333

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Long-term care facilities provide an important function in caring for the most vulnerable populations of the State of Delaware. However, these facilities are not required to have liability insurance to protect residents from harm caused by the facility. The bankruptcy filing of Genesis Health Care, one of the nation’s largest nursing home providers, which has operated facilities in Delaware, shed new light on the problems of long-term care facilities not being required to have liability insurance. Hundreds of claims across the country, including Delaware claims, related to substandard care causing injury or death to individuals face having no legal recourse to hold these facilities accountable. These claims include claims which Genesis had agreed to resolve for set amounts, which were to be satisfied with payments made in the future. Genesis filed for bankruptcy prior to making payments on many of these claims, including several claims resolved in Delaware, forcing the claimants to engage in a new and expensive process to pursue justice they had already resolved on their behalf or on behalf of their loved one. This Act requires long-term care facilities to have insurance policies that provide a minimum of $1 million per claim/$3 million aggregate coverage each for general liability and professional liability. This Act takes effect 180 days after enactment.