Nursing Home Liability Insurance

Nursing homes provide essential care for elderly and vulnerable individuals, managing complex medical needs, daily living assistance, and emotional support. From skilled nursing and rehabilitation to memory care and hospice services, your facility supports residents' quality of life while navigating stringent regulations and family expectations.

That also means your risk is unique. A single oversight in supervision, medication administration, or infection control can lead to falls, abuse allegations, outbreaks, or wrongful death claims. Insurance for nursing homes must address both clinical exposures (negligence, staffing shortages, wound care failures) and premises risks (visitor injuries, property damage during emergencies, multi-site operations).

This page explains the following:

What Insurance Includes – Professional Liability, General Liability, and key add-ons for nursing homes.
Cost of Coverage – typical annual premiums and major pricing factors.
Higher-Risk Areas of Care – procedures and activities that can raise premiums or trigger exclusions.
Why Work With Homewood

Get a Free Quote Now

Whether you manage a single nursing home or a network of senior living facilities, the right insurance program is vital to shield your operations, residents, and staff from unforeseen liabilities.

Homewood Insurance Group partners with top carriers to deliver tailored General Liability and Professional Liability coverage for nursing homes at competitive rates. Contact us today for a fast, no-obligation quote customized to your facility

Liability Insurance for Nursing Homes can include:

Bodily Injury Coverage
Property Damage Coverage
Premises Liability including slips, trips, and falls
Completed Operations Coverage
Personal and Advertising Injury including Defamation (slander or libel)
Medical Payments Coverage
Legal Defense Costs
Legal defense expenses covered in addition to liability limits
Abuse and Molestation (SAM) Coverage (limited coverage)
Evacuation Expense Endorsement to relocate residents in a natural disaster or emergency
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What Insurance Includes

Insurance for Nursing Homes can include:

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

Professional Liability (Malpractice) Insurance

Coverage for negligence in resident care, such as failure to prevent falls, inadequate monitoring of vital signs, or delays in responding to health changes.
Protection against claims of abuse or neglect, including physical, emotional, or financial mistreatment, as well as violations of residents' rights to dignity and autonomy.
Liability for medication errors, including wrong dosage, incorrect administration, or adverse reactions due to improper storage or documentation.
Claims arising from wound care issues, such as pressure ulcers (bedsores) from poor turning schedules or hygiene lapses leading to infections.
Defense for staffing-related errors, like insufficient trained personnel resulting in overlooked dietary needs, dehydration, or improper restraint use.
Coverage for outbreaks of infections (e.g., COVID-19, MRSA) tied to lapses in sanitation protocols or isolation procedures.
Optional extensions for specialized services, such as memory care units, hospice integration, or off-site therapy and rehabilitation programs.
Policy limits typically up to $1,000,000 per claim / $3,000,000 aggregate, with prior-acts and tail coverage available for facility transitions or expansions.

General Liability Insurance

Third-party bodily injury coverage for slip-and-fall incidents in common areas, hallways, dining rooms, or during transport to activities.
Protection for injuries to residents, visitors, family members, or staff caused by hazards like uneven flooring, poor lighting, or unsecured handrails.
Property damage liability for accidental harm to landlord property, resident belongings, or equipment during maintenance, renovations, or emergency evacuations.
Personal and advertising injury coverage, including claims of defamation, privacy invasions (non-HIPAA), or misleading marketing about care quality.
Coverage for multi-facility operations, including satellite locations, adult day programs, or community outreach events.
Abuse and Molestation (SAM) coverage, often with sub-limits, for allegations of misconduct in resident interactions.
Evacuation expense endorsement for costs related to relocating residents during fires, floods, or other emergencies.
Standard limits commonly at $1,000,000 per occurrence / $2,000,000 aggregate, with umbrella options for larger facilities or regulatory compliance.

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The Cost of Malpractice Insurance for Nursing Homes

Costs are quoted annually unless noted, assuming no prior claims and standard endorsements. Higher resident acuity (e.g., dementia units or post-acute care) or larger bed counts can add 25–75% surcharges, as carriers assess elevated exposure based on state regulations and claim history.

Professional Liability Insurance – Estimated Ranges:

Often around $2,500 – $4,000 per year for a small nursing home (under 50 beds) with a clean record and $1M / $3M limits.
Facilities with high-risk profiles (dementia care, frequent transfers, or past incidents) may face surcharges of 30–70% or require enhanced programs.

General Liability Insurance – Estimated Ranges:

Approx. $800 – $1,200 per year for a low-traffic facility with standard $1M / $2M limits.
Higher for homes with high visitor volume, outdoor amenities, or renovation activities.

Bundled General and Professional Liability or package policies - Estimated Ranges

Combining coverages can range from $3,000 – $5,000+ per year for smaller facilities, with potential discounts for integrated risk management.
Multi-site or large-scale operations will scale accordingly.

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Why do Nursing Homes need Insurance?

The complex nature care, combined with the high standards to which Nursing Homes are held, exposes them to significant risks for malpractice claims. Here are key areas where nursing homes are vulnerable to being sued for malpractice:

Common risks include:

Neglect and Abuse: Instances of neglect or abuse, whether physical, emotional, or financial, represent one of the most significant areas of vulnerability. This can include failing to provide basic care, such as feeding, bathing, or providing adequate medical attention.
Medication Errors: Errors in medication administration, including wrong dosage, wrong medication, or failing to administer medication at the correct times, can lead to adverse patient outcomes and are a common basis for malpractice claims.
Inadequate Wound Care: Improper care of wounds, especially pressure ulcers (bedsores), can lead to infections and serious complications. Facilities can be held liable if they fail to prevent or adequately treat these conditions.
Falls and Injuries: Falls are a significant risk in nursing homes, potentially leading to injuries such as fractures or head injuries. Facilities may face lawsuits if it is determined that inadequate safety measures or supervision contributed to a fall.
Failure to Monitor and Respond: Failing to monitor residents’ health conditions properly or to respond appropriately to changes in their condition can result in deterioration of health and may be grounds for a malpractice claim.
Infections and Illness Outbreaks: The spread of infections, particularly in communal living environments, can be devastating. Nursing homes can be sued if an outbreak is linked to negligence in infection control practices.
Violations of Residents’ Rights: This includes a wide range of potential issues, from not respecting residents’ privacy and autonomy to failing to involve them or their families in care decisions. Such violations can lead to legal actions.
Inadequate Staffing and Training: Insufficient staffing levels or inadequately trained staff can impact the quality of care, leading to neglect and errors. Facilities can be held liable for harm resulting from such deficiencies.
Dietary and Nutritional Negligence: Failure to provide adequate nutrition or to accommodate dietary restrictions can lead to malnutrition, dehydration, and associated health problems, making the facility vulnerable to lawsuits.
Improper Use of Restraints: The use of physical or chemical restraints can lead to physical injury, psychological harm, and a loss of dignity. Improper restraint use is a significant area of legal vulnerability.

Malpractice or liability insurance is crucial for nursing homes to protect against the financial and operational impacts of these and other potential liabilities. This insurance can cover legal defense costs, settlements, and judgments, providing a safety net that allows these facilities to continue providing care while managing the inherent risks of their operations. Get a quick quote on your insurance today, or talk with us about an alternative risk structure like a Single Parent Captive.

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High-Risk Procedures and their Impact on your Premiums

Certain operations that nursing homes engage in can elevate premiums or may be excluded if carriers determine the risks exceed standard underwriting appetite.

Area of Care / Risk Type	Description & Risks	Insurance Impact
Neglect and Abuse	Physical, emotional, or financial mistreatment, such as failing to assist with mobility, ignoring calls for help, or unauthorized fund handling, leading to injury, trauma, or exploitation.	Frequently triggers high-severity claims; PL premiums may increase 40–70% with surcharges for facilities without robust staff screening and reporting protocols.
Medication Errors	Administering incorrect doses, wrong drugs, or missing scheduled treatments, resulting in adverse reactions, hospitalizations, or fatalities.	Common claim driver raising PL rates 25–50%; underwriters emphasize electronic prescribing systems, double-checks, and pharmacist oversight.
Inadequate Wound Care	Poor management of pressure ulcers or surgical wounds, including infrequent turning or improper dressings, escalating to severe infections or sepsis.	Viewed as preventable negligence; can add 30–60% to PL premiums unless supported by wound care teams and regular audits.
Falls and Injuries	Resident falls due to slippery floors, missing grab bars, or insufficient supervision, causing fractures, head trauma, or long-term disability.	High-frequency GL claims; premiums rise 20–40% without fall prevention programs, bed alarms, or physical therapy integrations.
Failure to Monitor and Respond	Overlooking vital sign changes, delirium signs, or emergency needs, allowing conditions to worsen into critical events like strokes or cardiac arrests.	Often leads to large settlements; PL surcharges of 35–65% apply, mitigated by telemetry monitoring and rapid response training.
Infections and Outbreaks	Spread of HAIs (e.g., C. diff, flu) from lapses in hand hygiene, isolation, or equipment sterilization in shared living spaces.	Post-pandemic scrutiny boosts PL rates 25–55%; carriers demand CDC-compliant protocols and vaccination records.

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Other types of Insurance that Nursing Homes need

Homewood can often combine 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 Nursing Homes against claims related to malpractice, negligence, or injury resulting from treatment. Staff members will typically be covered by professional liability insurance.

Sexual Abuse and Molestation Insurance

Provides coverage for your Nursing Home against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization.

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 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

Nursing homes face unique regulatory scrutiny and resident-centered risks that generic policies often overlook. At Homewood, we help you:

Partner with carriers experienced in senior care and long-term facilities, avoiding off-the-shelf plans that undervalue your specialized exposures.
Customize coverage to match your resident profile, from independent living to skilled nursing, ensuring abuse, neglect, and evacuation risks are explicitly addressed.
Bolster applications with details on your staffing ratios, training programs, infection control measures, and compliance audits to secure better rates.
Build scalable solutions for growth—whether expanding beds, adding memory care wings, or integrating telehealth and rehab services.
Fine-tune deductibles, limits, and add-ons like cyber liability, pollution cleanup, or excess coverage to align with CMS requirements and lender demands.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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

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