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Law360, London (January 20, 2021, 3:59 PM GMT) -- The U.K. will provide insurance for care homes who take in patients testing COVID-19 positive but are unable to secure coverage, according to a government official.
Getting sufficient insurance to accept COVID-19 patients has been an obstacle for care homes that want to participate in a government program for outpatients, Nadhim Zahawi, a parliamentary under secretary in both the departments of business and health, said in a statement to Parliament on Monday.
The government will apply the insurance plan to designated care homes for infected patients from hospitals who no longer need medical treatment, but still require support.
"The government will introduce a targeted and time-limited indemnity offer to fill gaps in commercial cover," said Zahawi, who pointed to the need to remove obstacles to the program given the severe pressure facing the country's National Health Service.
Indemnity is an insurance policy where the insurer can provide compensation when a policy holder sustains losses. The insurance cover will be provided until the end of March next year, with a review expected to take place in mid-February, Zahawi said.
He did not say how much the scheme would cost.
The indemnity insurance will cover clinical negligence as well as an employer's liability for providers that want to become a designated setting but cannot secure sufficient commercial insurance.
Care providers already involved in the scheme, but who do not have enough insurance, will also qualify for the cover, Zahawi said.
A Department of Health spokesman expressed gratitude to the insurance sector for stepping forward "impressively" during the pandemic.
"We have worked with the insurance industry to find a solution and this arrangement will allow for safe transfers into designated care homes, while protecting other vulnerable residents," the spokesman said.
In addition to the health sector, the government has rolled out a scheme to provide support for British television and film productions that have had to come to a halt because they could not get insurance cover.
The £500 million ($680 million) program for film and TV productions, which was announced in July 2020, will allow the government to effectively act as a commercial insurer for the sector, selling cover in exchange for a premium.
The government has also worked with the banking sector to provide loans for businesses struggling to stay afloat during the pandemic.
--Additional reporting by Martin Croucher. Editing by Alyssa Miller.
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