Assisted Living Facility Business Insurance Requirements: What You Need to Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 19
- 2 min read
If you’re preparing to open or operate an assisted living facility, securing the right insurance is essential. Business insurance requirements for assisted living facilities vary by state and by the services you provide, but having the correct coverage is mandatory for licensing and protecting your business, staff, and residents.
This guide outlines what you need before applying for assisted living business insurance and how working with Wexford Insurance can simplify the process.
Why Insurance Requirements Matter
Assisted living facilities are responsible for caring for vulnerable populations. Insurance protects your facility from:
Resident injuries or medical errors
Property damage or fire
Employee injuries
Legal claims and regulatory fines
Meeting insurance requirements is not only a legal necessity but also a financial safeguard for your business.
Common Insurance Requirements for Assisted Living Facilities
While requirements vary by state, most assisted living facilities need the following coverage:
Covers accidents involving residents, visitors, or contractors on your property. Most states require a minimum coverage amount.
Protects your facility against claims related to care errors, neglect, or malpractice. This is especially important for facilities offering medical or memory care services.
Covers buildings, equipment, and furnishings from fire, theft, or natural disasters.
Required in nearly every state for facilities with employees. Covers injuries or illnesses that occur on the job.
5. Optional / Additional Coverages
Cyber Liability: Protects electronic health records and resident data.
Business Interruption Insurance: Covers loss of income from covered events.
Umbrella Coverage: Provides additional liability protection above standard limits.
For state-specific requirements, visit Medicare.gov State Health Programs.
What You Need Before Applying
To streamline the insurance application process, have the following ready:
Facility license or proof of state compliance
Number of residents and facility size
Employee roster and payroll details
Copies of safety protocols and emergency preparedness plans
Claims history, if any
Having these documents prepared ensures faster processing and accurate quotes.
How to Choose a Provider
Not all insurance providers understand the unique risks of assisted living facilities. Wexford Insurance specializes in senior care and assisted living coverage. They help facility owners:
Identify required policies and limits
Evaluate optional coverage for enhanced protection
Provide a tailored insurance quote based on your facility’s operations
Final Thoughts
Before applying for assisted living business insurance, facility owners must understand both state-mandated requirements and their facility’s unique risks. Preparing the necessary documentation, selecting appropriate coverage types, and partnering with an experienced provider like Wexford Insurance ensures compliance, protection, and peace of mind.
