Insurance for Assisted Living Facilities

We help assisted living providers secure tailored coverage that protects residents, staff, and the facility itself. This page outlines what your policy should include, how much it typically costs, and which practices can increase premiums or even lead to coverage denials.

What Insurance Includes – detailed breakdown of Professional Liability and General Liability protections for assisted living facilities.
Assisted Living Facilities Insurance COst – typical annual premium ranges and the factors that drive pricing for ALFs.
Higher-Risk Exposures – procedures and activities that elevate premiums or may lead to denial of coverage.
Why Work With Homewood – how we help assisted living facilities secure strong coverage in a tightening market.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for an assisted living facility 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.

Assisted Living Facilities Insurance can include:

Professional liability protects against negligent care, medication errors, or improper ADL assistance.
General liability covers resident slips, falls, or third-party injuries on premises.
Staff liability for nurses, CNAs, and personal care aides included.
Optional protection for memory care, behavioral health, and dementia units.
Legal defense costs are included in addition to policy limits.
Coverage available up to $1M per claim / $3M aggregate, with tail coverage options.

Insurance for Assisted Living Facilities can include:

Professional Liability is designed to protect your facility and staff when residents or their families allege mistakes, negligence, or inadequate care. General Liability protects your facility from accidents that happen on your property or during facility operations.

Professional Liability Insurance for ALFs

Medication management errors – such as giving the wrong dosage, missing a dose, or incorrect documentation.
Failure to monitor or delayed response – allegations that staff did not respond quickly enough to changes in condition, leading to hospitalization or worsening health.
Memory care or dementia support – liability tied to wandering, aggression, or cognitive impairment.
Neglect or abuse claims – even unfounded allegations can cost thousands to defend.
Improper discharge or transfer decisions – lawsuits may arise if residents are discharged without appropriate planning.

General Liability Insurance

Slip-and-fall injuries – the most common source of lawsuits in assisted living.
Visitor accidents – when family members, vendors, or contractors are injured on-site.
Property damage – claims if staff or residents accidentally damage another person’s property.
Personal and advertising injury – coverage for claims such as libel, slander, or reputation-related disputes.
Evacuation expense endorsement – reimbursement to relocate residents during natural disasters or emergencies.

Homewood Insurance Group work with different insurance carriers to find you the most suitable coverage at the best price. Get a quick quote now.

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The Cost of Insurance for Assisted Living Facilities:

(Per-Bed Planning Benchmarks):

Use these as budgeting guides; actual pricing depends on resident acuity, claims history, state venue, and controls. Recent industry data shows assisted living claim severity exceeds skilled nursing and has risen further in 2024, which is why ranges can be wide.

If your General and Professional Liability Insurance is priced together (combined liability):

Standard ALF (no memory care): $500–$1,200 per occupied bed per year.
ALF with memory-care/dementia: $700–$1,500 per occupied bed per year.
High-litigation states or adverse loss history: $1,200–$1,800+ per bed.

If GL and PL are priced separately (common split):

Professional Liability: ~$350–$900 per bed (higher for memory care)
General Liability: ~$150–$300 per bed (facility size/amenities drive this)

Explanation for price ranges:

Resident acuity & memory care: dementia units see more elopement, falls, and behavioral incidents → higher PL/GL.
Claims history & documentation: recent falls/pressure-injury/medication claims push rates higher at renewal.
State venue & jury trends: CA, FL, KY and other tough venues price higher due to verdict severity and social inflation.
Loss-cost environment: Senior living liability loss costs per bed and average claim sizes have trended upward, pressuring premiums.

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High-Risk Procedures and their Impact on your Premiums

Certain practices don’t automatically mean denial, but they do trigger surcharges, higher deductibles, exclusions, or non-renewal if unmanaged:

Performing skilled nursing beyond Assisted Living Facility scope (e.g., IV therapy, trach/vent care) without proper licensing/oversight.
Gaps in abuse-prevention programs (background checks, training, reporting).
High fall rates without risk assessments, lift/transfer protocols, or incident logs.
Insufficient elopement safeguards in memory care (alarms, delayed egress, staffing).
Chronic staffing shortages/turnover and poor training documentation.

Procedure Category	Examples	Why Higher Risk?	Insurance Impact
High-acuity care (e.g., dementia units)	Memory care, behavioral health integration	More elopement, aggression, and injury potential; requires specialized staffing and safeguards.	Premiums +20–40%; higher deductibles common.
Falls & ADL assistance	Bathing, toileting, transfers, ambulation support	Falls drive a large share of ALF claims; older buildings and weak assessments increase frequency/severity.	Premiums +10–30% based on loss history.
Medication administration	Dispensing, storage, controlled-substance monitoring	Dosing/administration errors can cause severe harm; documentation gaps amplify exposure.	Premiums +15–35%; higher if no eMAR/pharmacy partnership.
Staffing shortages / turnover	Understaffed shifts, high CNA churn	Raises neglect and delayed-care allegations; correlates with claim severity.	Up to +50% in severe cases; non-renewal possible.
Elopement or abuse incidents	Resident wandering, abuse/neglect allegations	High-severity losses and regulatory scrutiny; missing safeguards escalate risk.	Premiums +25–50% or exclusions; denial if safeguards absent.

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Other types of Insurance Assisted Living Facilities may need

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

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.

Professional Liability Insurance

Also known as malpractice insurance, this protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.

Sexual Abuse and Molestation Insurance

Provides coverage for your Assisted Living Facility against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.

Workers’ Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects midwives practices and employees in case of work-related injuries or illnesses.

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.

Why Work With Homewood

Homewood Insurance specializes in insurance for the senior living sector. We:

Place ALFs with A-rated carriers that actively write assisted living and memory care.
Tighten submissions (fall logs, care-plans, incident reporting, surveys) to earn credits and avoid exclusions.
Compare combined vs. split GL/PL structures and layer umbrella/excess where contracts or lenders require it.
Keep you current as claim severity trends rise for ALFs, so you’re never blindsided at renewal.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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

Call 947-274-3093 or email submissions@homewood.insure.