Insurance for Residential Care Centers - Get a Quote

Skip to content

Residential care centers support residents who need help with daily living but do not require full hospital-level care. You manage fall risks, medication support, dementia behaviors, family expectations, and regulatory requirements, all while providing a safe and homelike environment.

Insurance for residential care centers must reflect this mix of hospitality and healthcare. The right policies protect your facility from allegations of neglect, abuse, medication errors, falls, elopement, contract disputes, and incidents on the premises, while also meeting lease and licensing requirements.

This page contains the following information:

What Insurance Includes – Professional Liability, General Liability, and key add-ons.
Cost of Coverage – typical annual premiums and major pricing factors.
Higher-Risk Practices – activities that trigger surcharges, exclusions, or declinations.
Why Work With Homewood

Insurance for Residential Care Centers 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

Insurance for Residential Care Centers can include:

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

Professional Liability (Malpractice) Insurance
1. Coverage for alleged negligence in resident care – such as failure to monitor, inadequate assistance with activities of daily living, or delayed response to changing health conditions.
2. Protection for claims of neglect or improper treatment, including poor hygiene, malnutrition, dehydration, or unmanaged pain.
3. Medication management liability, including wrong drug, wrong dose, missed doses, or failure to follow physician orders.
4. Defense for care-plan and documentation disputes, including progress notes, incident reports, and communication with families and physicians.
5. Coverage for alleged violations of residents’ rights, such as lack of dignity, privacy breaches, or interference with autonomy and decision-making.
6. Limited Abuse and Molestation (SAM) coverage, where available, for allegations of physical, emotional, sexual, or financial abuse by staff or other residents (often with sub-limits and strict conditions).
7. Legal defense costs, including attorney fees and court costs, usually covered in addition to or within the liability limits depending on the policy.
8. Standard limits often up to $1,000,000 per claim / $3,000,000 aggregate, with options for higher limits, tail coverage, and prior-acts protection.
General Liability
1. Bodily injury coverage for visitors, families, contractors, and residents injured due to hazards on the premises (e.g., slips, trips, falls, or unsafe walkways).
2. Property damage coverage if your operations accidentally damage a third party’s property (e.g., vendors, neighboring tenants, landlord’s property).
3. Premises liability for accidents in common areas, dining rooms, parking lots, courtyards, and during facility events.
4. Completed operations coverage for claims that arise after a service is provided, such as injuries linked to installed grab bars, railings, or equipment.
5. Personal and advertising injury coverage, including claims of libel, slander, or reputational damage not tied to protected health information.
6. Medical payments coverage for minor injuries on the premises, often paid without having to establish fault.
7. Evacuation expense endorsements, where available, to help cover costs of relocating residents during a natural disaster, fire, or other emergency event.
8. Legal defense expenses for covered liability claims, subject to policy terms and limits.

⬆ Back to contents

Small RCC (1-25 beds, low-acuity): $1,200-$5,000
Mid-Sized RCC (25-100 beds, assisted living/memory care): $5,000-$12,000
Large RCC (100+ beds, skilled elements): $10,000-$25,000+

Small RCC (1-25 beds, low-acuity): $1,000-$3,000
Mid-Sized RCC (25-100 beds, assisted living/memory care): $3,000-$7,000
Large RCC (100+ beds, skilled elements): $7,000-$15,000+

Key Pricing Factors

Resident profile and acuity – More residents with dementia, mobility issues, or complex needs will increase risk and rates.
Services offered – Medication management, memory care units, and transport services each add exposure.
Claims and incident history – Prior falls, pressure injuries, elopements, or abuse allegations significantly impact pricing.
State and legal climate – Facilities in more litigious states or with specific statutory requirements may pay higher premiums.
Staffing and training – Stable staffing levels, documented training, and background checks often help keep premiums more manageable.
Regulatory survey results – Clean inspections and strong corrective-action plans support better underwriting outcomes.

⬆ Back to contents

Practice / Exposure	Description & Risks	Insurance Impact
Hands-On Medication Management	Staff administering or managing medications for residents instead of residents self-administering. Errors can lead to hospitalization, stroke, or other serious complications.	Can increase Professional Liability premiums by 30–50%; carriers may require eMAR systems and regular medication audits.
Memory Care / Dementia Units	Higher elopement, fall, and behavioral risks in residents with cognitive impairment; allegations of inadequate supervision or failure to prevent wandering.	Often rated at a higher risk class with 40–70% premium surcharges unless strong controls (alarms, secured units, staffing ratios) are documented.
Use of Physical or Chemical Restraints	Restraints can cause injury, distress, or rights violations and are tightly regulated in most jurisdictions.	Frequent red flag for underwriters; can lead to declinations, broad exclusions, or significant rate increases unless policies strictly limit use.
High-Acuity Care in a Non-Medical Setting	Caring for residents whose needs are closer to skilled nursing—complex wounds, IV therapy, or unstable conditions—without full clinical infrastructure.	May trigger reclassification to higher-risk categories or refusal by some carriers; premiums and deductibles often rise sharply.
Resident Transportation and Off-Site Activities	Injuries during van transport, transfers in and out of vehicles, or incidents during outings and community events.	GL premiums can increase 20–40%; separate auto coverage and specific transport protocols are often required.
Dementia-Related Behaviors and Abuse Allegations	Incidents between residents or between staff and residents, including claims of verbal, physical, or sexual abuse.	Abuse and Molestation (SAM) coverage is often limited or sub-limited; facilities with prior incidents face surcharges or restricted terms.
Regulatory Non-Compliance or Poor Survey Results	Deficiencies related to staffing, documentation, care planning, or life safety systems; repeated citations signal systemic risk.	Can result in higher premiums, coverage restrictions, or non-renewal; strong corrective-action plans are essential when applying.

⬆ Back to contents

Why Work With Homewood

Residential care centers operate in a challenging environment—balancing hospitality, caregiving, family expectations, and regulatory pressure. At Homewood, we help you:

Match with carriers that understand assisted living, board-and-care, and continuing care communities instead of treating you like a hospital or nursing home by default.
Present a strong underwriting story by highlighting your fall-prevention programs, medication protocols, staff training, and survey improvements to support better terms.
Avoid hidden gaps, such as limited abuse and molestation coverage, missing eviction or contract dispute protections, or inadequate limits for memory care units.
Optimize limits, deductibles, and structure, whether you need standard GL/PL, umbrella coverage, or want to explore alternatives like captives or risk-sharing arrangements.
Support growth and change, adding new locations, services, or care levels as your community evolves—without having to start over with a new broker each time.