Quick reminder: Virginia Administrative Code specifies that nursing facilities must carry both:

• general liability insurance of at least $1 million, and

• professional liability coverage in an amount at least equal to the recovery limit for the medical malpractice cap set forth in § 8.01-581.15.
  • For state fiscal year July 1, 2024-June 30, 2025, the recovery limit set forth in the medical malpractice statute is $2.65 million.
  • From July 1, 2025-June 30, 2026, the recovery limit will be $2.70 million.
  • The medical malpractice recovery limit increases by $50,000 each year until July 1, 2030 when it reaches $3 million.

Why it matters: We are aware that surveyors are actively reviewing liability coverage.

• 12VACS5-371-160, which has been in effect since 2013, states that failure to maintain either minimum insurance shall result in revocation of the facility’s license.

Action for nursing facilities: Consult with counsel and your insurance broker to verify that coverage minimums are in place.

• A change of note: SB 1152, which is effective July 1, 2025, requires each nursing home to maintain per facility, non-eroding general liability insurance coverage of $1 million per occurrence. Limits of coverage cannot be reduced by the cost of defense or cost of defense litigation. This coverage must be per facility if part of a multi-facility organization.

Disclaimer: This information is provided by VHCA-VCAL for education purposes only and does not constitute legal advice.