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Insurance for Intellectual and Developmental Disability Centers

Insurance for Intellectual and Developmental Disability Centers 

At Homewood Insurance, we provide tailored liability insurance for IDD centers to protect residents, staff, and organizational leadership. This page explains what your policy should include, how much coverage typically costs, and which practices can raise premiums or trigger coverage denials.

  • What Insurance Includes – breakdown of Professional Liability insurance and General Liability insurance for IDD centers.
  • Cost of Coverage – premium ranges and factors that drive pricing for residential and community-based programs.
  • Higher-Risk Exposures – practices that can elevate premiums or cause insurers to decline coverage.
  • Why Work With Homewood – how we help IDD providers secure comprehensive, affordable coverage.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for Intellectual and Developmental Disability Centers 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.

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Insurance for Intellectual and Developmental Disability Centers can include:

  • Professional Liability insurance protects against negligent supervision, care plan errors, and behavior management failures.
  • General Liability insurance covers third-party injuries on-site, such as falls, elopement, or incidents involving visitors.
  • Applies to day programs, outpatient support centers, group homes, and residential IDD providers.
  • Coverage includes direct support professionals, nurses, behavior analysts, case managers, and program directors.
  • Standard limits up to $1M per claim / $3M aggregate, with tail and prior acts coverage available.
  • Optional endorsements for ABA therapy providers, respite care services, and in-home support staff.

More information

Insurance for Intellectual and developmental disability centers can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice)

    1. Coverage for claims of negligent supervision, improper restraint, or inadequate behavior interventions.
    2. Defense against medication errors, delays in medical response, or treatment plan failures.
    3. Applies to DSPs, nurses, behavioral therapists, case managers, and program directors.
    4. Optional coverage for ABA therapy, respite care, or in-home support.
    5. Protection for incident reporting, licensure actions, and abuse/neglect investigations.

  2. General Liability

    1. Coverage for third-party injuries, such as client elopement, unsafe environments, or equipment hazards.
    2. Protection for property damage caused by clients or staff, and liability for visiting families or community participants.
    3. Personal and advertising injury coverage for claims like defamation or invasion of privacy.
    4. Applies to day habilitation centers, group homes, job coaching, and community-based services.
    5. Limits of $1M per occurrence / $3M aggregate, with umbrella options available.

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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Cost of Coverage:

Professional Liability (PL / Malpractice) – Estimated Ranges

  • Small day programs or outpatient services: $4,000–$8,000 annually.
  • Residential group homes with multiple staff: $10,000–$20,000 annually.
  • Large multi-site IDD centers: $25,000+ annually.

Premiums depend on staffing ratios, patient populations, services offered, and claims history.

General Liability (GL) – Estimated Ranges:

  • Small centers or single group homes: $1,500–$3,500 annually.
  • Mid-sized multi-home or day program agencies: $5,000–$10,000 annually.
  • Large residential providers or statewide programs: $12,000–$20,000+ annually.

Rates are influenced by facility conditions, elopement risks, visitor traffic, and compliance with safety standards.

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High-Risk Procedures and their Impact on your Premiums

While most IDD services are insurable, certain practices increase liability exposure. Carriers may raise premiums (20–50% or more), add exclusions, or decline coverage altogether if risks are unmanaged. Strong risk management—credentialing, training, and incident reporting—is critical for favorable terms.

➡ See the table below for common higher-risk activities.

Procedure/Activity Why It’s Higher Risk Potential Insurance Impact
Use of Aversive or Punitive Interventions Outdated or abusive techniques (e.g., shock therapy, prolonged isolation). May trigger exclusions or outright denial of coverage.
Unlicensed or Experimental Medical Procedures Electroconvulsive therapy (ECT), deep brain stimulation without proper licensing. PL denial if procedures fall outside professional scope.
Conversion Therapy or Discriminatory Practices Unethical and often illegal in many states. Typically excluded from coverage; likely to trigger refusal.
Use of Physical or Chemical Restraints High potential for injury or rights violations if protocols not followed. Premium increases of 30–50%; exclusions possible.
Medication Management Errors Polypharmacy, dosage errors, or lack of oversight. Significant PL increases; denials if unlicensed staff involved.
Crisis Intervention or Violence De-escalation Claims for injury or failure to prevent harm during behavioral incidents. Higher PL rates; specialty carriers may charge surcharges.
Emerging or Alternative Therapies Treatments like ketamine, TMS, or neurofeedback lack long-term data. Premium hikes of 30–50% or need for endorsements.
Telemedicine or Virtual Services Increased malpractice claims risk, especially for crisis patients. Premium surcharges; exclusions if purely virtual.
Staff–Patient Boundary Issues Dual relationships or confidentiality breaches. May trigger exclusions or abuse/molestation sublimits.

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Other types of Insurance IDD Centers
may need

 
General Liability Insurance

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

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 like medical professionals and counsellors will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for your child day care center against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the social services industry.
 
 
Commercial Property Insurance

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

Workers Compensation Insurance is usually mandated by law. It protects 

Intellectual and Developmental Disability Centers and employees in case of work-related injuries or illnesses.

 
 
Cyber Liability Insurance

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 helping IDD providers:

  • Secure Professional Liability and General Liability insurance that meets Medicaid waiver and state funding requirements.
  • Add coverage for abuse/molestation, respite care, telehealth, and ABA therapy.
  • Demonstrate strong risk management protocols to insurers, lowering premiums and improving insurability.
  • Compare policies across multiple carriers to ensure the best combination of coverage and price.

Call: 608-395-7545 or
Fill Out the Form

Chris-for-web

Chris Worley

Chris specializes in sourcing the most suitable insurance for Intellectual and developmental disability centers at the best price. You can call him or fill out the form and he will get your message directly.