Bermuda-based Allied World Assurance Company is to start writing long-term care facilities insurance in the US from the start of next year.

The company's Allied World Healthcare unit will write the business directly and through approved brokers and wholesalers.

"Long term care is an increasingly important segment of the US health care market and will be an area of focus for Allied World's Healthcare team," said John McElroy, president of Allied World US Professional Lines division.

"We will offer competitive coverage, and we'll support that with market-leading risk management and claims handling services, all specifically adapted for long term care entities," said Cindy Oard, senior vice-president of Allied World Healthcare in the US.

"Underwriting will be handled in-house by a dedicated team of experienced long term care facility underwriters beginning with January 1, 2011 effective date risks. Our focus will be on those organisations with a demonstrable commitment to quality in resident care."

The policy offers medical malpractice and general liability coverage of up to $1/$3 million in limits for primary, and up to $10 million in limits when placement includes excess.

The company said it was targeting facilities including nursing homes, assisted living, independent living, and continuing care retirement communities.

The board of Allied World has voted to redomesticate its holding company from Bermuda to Switzerland. The company expects the move to be completed by the end of the year.