Insurance for Adult Day Care Centers

Adult Day Care Centers (ADCs) provide a safe and engaging environment for seniors and adults with disabilities who need daytime supervision and social interaction. These facilities bridge the gap between independent living and full-time nursing care, offering meals, activities, and assistance with daily living tasks. However, the close physical care, transportation, and mobility support involved create multiple liability exposures that require tailored insurance coverage.

Homewood structures insurance programs specifically for adult day care providers—from small, family-run centers to multi-site operations.

This page covers the following:

What Insurance Includes – detailed inclusions for professional and general liability coverage.
Cost of Coverage – typical annual premiums and pricing factors.
Higher-Risk Services – which activities may trigger exclusions or premium surcharges.
Why Work With Homewood – our expertise in adult day care insurance.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for an adult day care center is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.

Homewood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.

Adult Day Care Centers Insurance can include:

Covers third-party bodily injury and property damage claims involving clients, visitors, or volunteers.
Protection for incidents during meals, recreational activities, transport, and mobility assistance.
Includes coverage for dementia, frail elderly, and special needs populations.
Optional protection for off-site excursions and sponsored wellness programs.
Policy limits up to $1M per occurrence / $3M aggregate; umbrella coverage available.

What Insurance Includes

Insurance for Adult Day Care Centers can include both Professional Liability (Malpractice/E&O) and General Liability to address day-to-day care and premises exposures.

Professional Liability (Malpractice Insurance)

Protection for alleged neglect, abuse, or failure to supervise during caregiving or activity programs.
Coverage for assistance with activities of daily living (ADLs), such as toileting, feeding, and mobility support.
Defense against claims tied to medication assistance, recordkeeping, or care plan errors.
Legal defense for allegations of improper hygiene support, transfers, or use of mechanical lifts.
Optional coverage for dementia or behavioral care programs that require redirection or time-out protocols.
Extensions to cover volunteers, part-time staff, and contracted service providers.
Sexual Abuse and Molestation (SAM) Insurance coverage available, offering additional protection for vulnerable populations.
Cyber liability add-on available for centers handling sensitive client health or personal data electronically.
Limits typically mirror GL at $1,000,000 per claim / $3,000,000 aggregate; higher limits available for larger centers.

General Liability Insurance

Bodily injury protection for incidents such as slips, falls, burns, or mobility accidents involving clients, guests, or volunteers.
Property damage coverage for accidents involving wheelchairs, walkers, or damage to building fixtures and equipment.
Premises and operations coverage for activities including meals, exercise, crafts, or social programs.
Optional coverage for transportation, including loading and unloading of clients in facility-owned vans or contracted vehicles.
Liability for off-site events, community outings, or field trips.
Protection against third-party claims linked to vendor visits or outside service providers.
Standard policy limits typically at $1,000,000 per occurrence / $3,000,000 aggregate, with umbrella/excess options.

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The Cost of Insurance for Adult Day Care Centers

Insurance premiums for adult day care centers vary based on facility size, services offered, client profile, and claims history.

Typical annual premiums for $1M / $3M limits:

General Liability: $1,800–$4,000 annually for custodial or social-model centers with basic activities and low risk.
Professional Liability: $1,500–$3,000 per year, depending on whether staff provide assistance with medication or personal care.
Property Insurance: $800–$2,000, depending on facility value, security, and fire safety features.
Abuse & Molestation Coverage: $400–$1,200 as an add-on, depending on training, background checks, and incident response procedures.

Factors influencing premiums include:

Number of participants and daily capacity.
Type of services provided (custodial care vs. limited clinical tasks).
Staff training and ratio to participants.
Frequency of falls or incidents on record.
State licensing standards and inspection history.
Whether transportation or off-site programs are offered.

Homewood compares quotes from multiple carriers to balance cost, coverage breadth, and long-term renewal stability.

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High-Risk Services and Their Impact on Your Premiums

Most adult day care operations are insurable, but certain services raise claim severity or require specific licensure and protocols. Underwriters may surcharge, exclude, or reclassify your risk based on the activities below.

Service or Procedure	Why Carriers Restrict or Load Premiums	Typical Insurance Impact
Invasive Medical Procedures	Catheter changes, wound debridement, or tracheostomy care require a nursing license. Most ADCs are not licensed for skilled nursing acts.	Generally declined by standard carriers or excluded under Professional Liability policies.
Medication Administration Beyond Oral	Injectables, insulin, or IV medications carry high error and anaphylaxis risk. Only allowed with RN supervision and strict documentation.	+50–100% PL surcharge or written exclusion if no licensed nurse on staff.
Tube Feeding or Complex Wound Care	G-tube feeding and pressure ulcer care increase infection and aspiration risk.	+75–150% on PL premiums; may require upgraded classification to “Assisted Living.”
Physical Therapy or Mobility Transfers	Injuries can occur during transfers, exercises, or use of lifts and wheelchairs.	+30–75% GL load or separate therapist coverage required.
Transportation Services	Auto and slip/fall exposures during van loading and unloading create overlapping liability concerns.	Requires commercial auto and higher GL limits; adds $500–$1,500 annually.
Behavioral or Dementia Care	Claims involving aggression, elopement, or restraint use are common; can lead to abuse allegations.	+100–250% PL increase or mandatory Abuse and Molestation endorsement.

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Other Types of Insurance Adult Day Care Centers Need

Homewood can often combine different types of coverage into one policy.

General Liability Insurance

Coverage for third-party injuries and property damage arising from everyday operations and premises exposures.

Professional Liability Insurance

Also known as malpractice insurance—protects your center and staff against allegations of negligent care or supervision.

Sexual Abuse and Molestation Insurance

Essential protection for vulnerable populations; helps cover defense and indemnity for SAM allegations.

Commercial Property Insurance

Protects buildings, contents, and equipment from covered perils such as fire, theft, and vandalism.

Workers’ Compensation Insurance

Covers employee injuries and illnesses arising out of work—typically required by law.

Cyber Liability Insurance

Helps cover costs related to data breaches, ransomware, notifications, and regulatory response.

Why Work With Homewood

Specialized experience: We insure adult day care centers across the country—from small nonprofit programs to regional organizations.
Access to 100+ carriers: Including admitted and specialty markets familiar with aging services and community care.
Customized coverage structure: We combine GL, PL, and Abuse & Molestation coverage to match your operational realities.
Guidance on compliance: Our experts help ensure your insurance meets state licensing, Medicaid, and lease requirements.
Flexible options: Shared or separate limits, multi-site coverage, and umbrella extensions available.
Proactive renewal management: We monitor carrier appetite and claim trends to keep your pricing stable year to year.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Adult Day Care Centers at the best price. You can call him or fill out the form and he will get your message directly.