FAQ on Assisted Living Contracts Added to MDH Website

A section on Assisted Living Contracts was recently added to the FAQ section of the Minnesota Department of Health (MDH) Assisted Living webpage. Included are responses to questions on liability waivers, renter's insurance, and arbitration provisions posed by providers.

Liability Waivers Allowed

Regarding waivers of liability related to acts of third parties, MDH allows contract language to limit the licensee's liability regarding the actions of third parties, such as third-party healthcare providers and resident guests.

Renter's Insurance Recommendations Allowed

In a contract, the provider can recommend renter's insurance if it is only a recommendation and does not indicate the licensee has no responsibility for the resident's personal property.

Off-Property Liability Language Allowed but Unnecessary

Regarding contracts containing language waiving the licensee's responsibility regarding resident's “checking out” or leaving the facility to limit the licensee's liability when the resident is off facility property, it is allowable but considered unnecessary. MDH states that nothing in statute indicates the licensee is liable when the resident leaves the premises of their own volition.

Property Damage Due to Flood, Fire, Theft, or Other Natural Disasters

Can a contract contain language limiting the licensee's responsibility to the resident for personal property damage due to fire, flood, theft, natural disasters, etc.? MDH indicates that an assisted living contract must not contain any waiver of facility liability with the resident's health, safety, and personal property. While there are many situations, such as natural disasters and acts of third parties, which would not be the licensee's responsibility, an assisted living licensee could be liable depending on the licensee's role in the resident's loss, and those narrow instances may not be waived.

The complete FAQ provides several additional items of interest. If you have questions, contact Bobbie Guidry.

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