Helping assisted living providers understand every insurance policy needed to protect residents, employees, buildings, transportation, and long-term financial stability.
What Insurance Does an Assisted Living Facility Need?
Protecting an assisted living operation requires more than a standard business policy. The right insurance program should address resident care, professional services, employees, buildings, transportation, cyber risks, and the unique liability exposures of senior living.
General Liability Protects against: Resident and visitor injuries Property damage Personal and advertising injury Legal defense costs Typical limit: $1M / $3M
Professional Liability Protects against allegations involving: Medication errors Negligent resident care Documentation mistakes Failure to follow care plans Common structure: Included with the assisted living liability program
Abuse & Molestation Addresses allegations involving: Employees or volunteers Resident-on-resident incidents Negligent supervision Defense and settlement costs Typical limit: $500,000–$1 million
Property Insurance Protects the physical assets that keep your facility operating, including: Building Furniture and fixtures Medical and safety equipment Business personal property Business income after a covered loss Typical recommendation: Replacement-cost coverage
Worker’s Compensation Provides protection for employees injured during the course of their work, including: Caregivers Nurses and medication staff Kitchen and housekeeping employees Maintenance workers Administrative staff Typical recommendation: Statutory limits with $1M employer’s liability
Commercial Auto Designed for vehicles used in assisted living operations, including: Resident transportation Medical appointments Wheelchair-accessible vans Company-owned vehicles Staff driving for business purposes Typical recommendation: $1 million combined single limit
Umbrella Liability Adds an extra layer of protection above your General Liability, Professional Liability, and Commercial Auto policies. Ideal for: Large liability claims Serious resident injuries Lawsuits Contract requirements Typical Recommendation $1M–$5M Umbrella
Cyber Liability Protect your facility from today’s digital risks. Coverage includes: HIPAA breaches Ransomware attacks Resident information theft Wire fraud Data recovery expenses Typical Recommendation $1 Million Cyber Liability
Crime Coverage Protect your business from financial losses caused by theft and fraud. Coverage includes: Employee theft Forgery Computer fraud Social engineering Theft of money or securities Typical Recommendation ✔ $25,000–$100,000 Crime Limit
What Does a Complete Assisted Living Insurance Program Include?
A properly designed assisted living insurance program protects your residents, your staff, your buildings, and your business from the industry’s most common risks. Use this checklist to compare your current coverage.
✅ Recommended Coverage
🟩 General Liability 🟩 Professional Liability 🟩 Abuse & Molestation 🟩 Property Insurance 🟩 Workers’ Compensation 🟩 Commercial Auto 🟩 Hired & Non-Owned Auto 🟩 Umbrella Liability 🟩 Cyber Liability 🟩 Crime Coverage 🟩 Employment Practices Liability 🟩 Equipment Breakdown
❌ Common Coverage Gaps
🟥 Standard Business Owner Policy Only 🟥 No Professional Liability 🟥 No Abuse & Molestation Coverage 🟥 Underinsured Property Values 🟥 No Commercial Auto 🟥 No Cyber Insurance 🟥 No Crime Coverage 🟥 No Umbrella Policy 🟥 No Employee Handbook Protection 🟥 Insurance Written by a Generalist 🟥 Outdated Coverage Limits 🟥 No Annual Insurance Review
Not Sure If Your Current Coverage Meets These Standards?
We’ll review your current insurance program, identify coverage gaps, explain contract requirements, and provide recommendations designed specifically for assisted living providers.
Insurance requirements vary by state, licensing agency, landlord, lender, and managed care organization. While every assisted living operation is unique, these recommendations represent the coverage limits we most commonly recommend for our clients.
Coverage
Minimum
Recommended
Best Practice
General Liability
$1m
$1m/$3m
⭐ Industry Standard
Professional Liability
Varies
Included
⭐ Essential
Abuse & Molestation
None
$500k-$1m
⭐ Strongly Recommended
Property Insurance
ACV
Replacement Cost
⭐ Best Practice
Workers’ Compensation
State Required
Statutory
⭐ Required for W-2 Employees
Commercial Auto
State Minimum
$1m CSL
⭐ If Transporting Residents
Hired & Non-Owned Auto
None
Included
⭐ Recommended
Umbrella Liability
None
$1m-$5m
⭐ Highly Recommended
Cyber Liability
None
$1m
⭐ Highly Recommended
Crime Coverage
None
$25k-$100k
⭐ Recommended
Every Facility Is Different
Coverage requirements vary depending on your number of residents, memory care exposure, transportation services, payroll, property values, contracts, and state regulations. Our advisors customize every insurance program based on your specific operation rather than using a one-size-fits-all approach.
Why Specialized Assisted Living Insurance Matters
Many insurance agencies write assisted living facilities using generic business insurance policies. Prosperity North Advisors specializes in assisted living insurance, helping providers secure coverage designed around the unique risks of senior care operations.
General Insurance Agency
Prosperity North Advisors
Generic Business Policies
Assisted Living Specialist
Limited Knowledge of Licensing
State-Specific Expertise
Minimal Resident Care Focus
Coverage Designed for Resident Care
Standard Renewal Process
Semi & Annual Coverage Review
Limited Carrier Options
Specialized Assisted Living Markets
Reactive Service
Risk Management Partnership
🏥 Assisted Living Specialists Focused exclusively on the unique risks and insurance needs of senior care providers.
⚡ Quotes in 24 Hours Fast turnaround from carriers experienced in assisted living operations.
🌎 Multi-State Program Serving assisted living providers across multiple states with consistent expertise.
🤝 Dedicated Insurance Advisors Personalized service before, during, and after your policy is issued.
Frequently Asked Questions
Have questions about assisted living insurance? Below are answers to some of the most common questions we receive from assisted living owners, administrators, and operators across the country.
Most assisted living facilities should carry General Liability, Professional Liability, Abuse & Molestation Coverage, Property Insurance, Workers’ Compensation, Commercial Auto (if transporting residents), Cyber Liability, and Umbrella Liability. Coverage should always be tailored to your operations and state requirements.
Many assisted living insurance programs include Professional Liability, but coverage varies by carrier. We review each policy to ensure it matches your operational exposures.
Although requirements vary by state and contract, Abuse & Molestation coverage is strongly recommended for every assisted living provider because of the unique risks associated with resident care.
In most states, employers with W-2 employees are required to carry Workers’ Compensation insurance. Requirements vary by state.
Resident transportation generally requires Commercial Auto insurance, and employees using personal vehicles for business should also have Hired & Non-Owned Auto coverage.
Most assisted living providers carry at least $1 million per occurrence / $3 million aggregate, although lenders, landlords, and referral contracts may require higher limits.
Absolutely. We offer complimentary insurance reviews to identify coverage gaps, compare limits, and provide recommendations tailored to your facility.
Most assisted living insurance quotes are delivered within 24 hours once we receive the required underwriting information.
Yes. We specialize in assisting providers across multiple states and understand the unique licensing and insurance considerations in each market we serve.
Yes. We regularly work with new facilities, ownership groups, and operators opening their first assisted living community.
READY TO PROTECT YOUR FACILITY?
Speak With an Assisted Living Insurance Specialist
Whether you’re opening your first assisted living home, reviewing your current insurance program, or expanding into new locations, Prosperity North Advisors can help identify coverage gaps, compare insurance options, and build a program designed specifically for assisted living providers.
