Adult Day Care Business Insurance Requirements You Must Know
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
If you operate or plan to open an adult day care facility, understanding the insurance requirements is one of the most important steps in protecting your business and maintaining compliance. Adult day care centers are highly regulated across the United States, and most states require proof of specific insurance policies to legally operate.
This guide covers everything you need to know, including mandatory requirements, recommended coverage, and how to quickly get the right adult day care business insurance quote through Wexford Insurance.
1. State Licensing Requirements Usually Mandate Liability Insurance
Most states require adult day care centers to be licensed or certified in order to operate legally. Licensing laws commonly require proof of insurance, especially general liability and professional liability coverage, before approval.
According to the U.S. Department of Health and Human Services, the majority of states regulate adult day services through license or certification, and compliance with safety and liability protection standards is mandatory.
In many states, your licensing application cannot move forward until you provide proof of:
Facilities may also need coverage before obtaining zoning approvals or operational permits, according to legal and regulatory guides for adult day care centers.
2. Liability Insurance Is Required for Most Adult Day Care Centers
Adult day care centers must protect themselves from common risks, including:
Slip‑and‑fall injuries
Negligence allegations
Medication errors
Supervision-related incidents
General and professional liability insurance is the foundational requirement for protecting against these incidents. Many state licensing authorities explicitly require proof of adequate liability insurance as part of the approval process.
3. Abuse & Molestation Coverage Is Often Mandatory
Because adult day care clients are considered a vulnerable population, many insurers and regulators require facilities to carry Abuse & Molestation (A&M) coverage. This protects the center if claims of physical, emotional, or sexual abuse arise.
Insurers that specialise in adult day care coverage list abuse and molestation insurance as a core requirement for facilities serving impaired or elderly adults.
4. Workers’ Compensation Is Required If You Have Employees
Every state requires workers’ compensation for employees, and adult day care workers face higher injury risks due to:
Client mobility assistance
Lifting or transferring adults
Medical support tasks
Workers’ compensation is one of the mandatory insurance requirements for adult day care facilities across state licensing systems.
5. Commercial Auto Insurance Required for Client Transport
If your center transports participants, most states require:
This requirement is explicitly noted in adult day care licensing and operational regulations when transportation services are offered.
6. Property & Fire Safety Insurance Requirements
Some state and local regulatory agencies may require proof of:
State regulations typically require facilities to pass fire inspections and meet building safety standards, which often tie directly to your insurance coverage and documentation.
Many adult day care centers cannot complete the licensing process without passing these inspections.
7. Insurance Requirements May Vary by State
Regulations differ significantly across states. For example:
Some states require both license and certification
Some regulate medical (adult day health) and social models differently
Some have additional insurance obligations for dementia or special‑needs programming
A federal overview highlights that states vary widely in insurance-related licensing requirements, with some requiring multiple approval steps to operate legally.
Visit APSE for more information
This is why it’s essential to work with an agency that specialises in adult day care insurance.
Get the Right Coverage With Wexford Insurance
Wexford Insurance works with national carriers that specialize in adult day care business insurance. We help you understand your state's requirements and secure the correct coverage quickly.
With Wexford Insurance, you get:
✔ Guidance on your state’s licensing insurance requirements
✔ Access to top insurers that cover adult day care facilities
✔ Help gathering the documents needed for quotes and compliance
✔ Multiple insurance quotes so you can compare pricing
✔ Fast turnaround times with industry‑specific expertise
Request Your Adult Day Care Business Insurance Quote
Make sure your facility meets every requirement—and gets the coverage it needs to operate safely.
👉 Request a quote now at Wexford
Our team will walk you through the process and make securing adult day care business insurance simple and stress‑free.
