Understanding Insurance Costs for an Assisted Living Facility
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 19
- 3 min read
Understanding the insurance costs for an assisted living facility is essential for owners planning budgets, managing risk, and staying compliant with state regulations. Insurance is one of the largest ongoing expenses in senior care, and costs can vary widely depending on facility size, services, and risk exposure.
This guide explains how much assisted living insurance typically costs, what factors influence pricing, and how working with a specialized provider like Wexford Insurance can help you secure the right coverage at a competitive rate.
How Much Does Insurance Cost for an Assisted Living Facility?
On average, assisted living facility insurance costs range from $6,000 to $25,000+ per year, depending on multiple factors. Facilities offering higher levels of care or memory care services may see costs exceed $30,000 annually.
Typical annual cost ranges by coverage type include:
General Liability Insurance: $2,000 – $6,000
Professional Liability (E&O / Malpractice): $3,000 – $10,000
Property Insurance: $1,500 – $8,000
Workers’ Compensation: Varies by payroll and state
Cyber Liability Insurance: $500 – $3,000
These policies are often bundled, which can reduce total premiums.
Why Assisted Living Insurance Costs Are Higher Than Other Businesses
Assisted living facilities care for vulnerable populations and operate under strict regulatory oversight. Insurance carriers price policies based on the increased likelihood of:
Resident injury claims
Allegations of neglect or improper care
Medication errors
Employment-related lawsuits
Because of these risks, assisted living insurance is more expensive than standard commercial business insurance.
Key Factors That Impact Assisted Living Facility Insurance Costs
Several variables directly influence your premium:
Facility Size and Resident Count
More residents mean greater liability exposure and higher insurance costs.
Level of Care Provided
Facilities offering memory care, skilled nursing, or medication management pay higher premiums due to increased professional liability risk.
Staffing and Payroll
Workers’ compensation costs increase with staff size and job risk classifications.
Claims History
Past lawsuits, abuse allegations, or frequent claims can significantly increase premiums.
State Regulations
Insurance minimums and licensing requirements vary by state, affecting coverage limits and pricing.
State-specific assisted living requirements can be found at Medicare.gov.
Ways to Control and Reduce Insurance Costs
Assisted living facility owners can actively manage insurance expenses by:
Implementing fall-prevention and resident safety programs
Maintaining documented staff training and certifications
Conducting regular property and safety inspections
Reviewing policies annually to avoid over-insurance
Strong risk management practices often result in lower premiums and better underwriting terms.
Getting an Accurate Assisted Living Insurance Quote
Online estimates rarely reflect the true cost of insurance for assisted living facilities. The most accurate pricing comes from working with a broker who understands senior care operations.
Wexford Insurance specializes in insurance for assisted living and senior living facilities. Their team evaluates your specific services, staffing, and regulatory requirements to deliver a custom insurance quote that balances cost and coverage.
👉 Request a personalized assisted living facility insurance quote from Wexford Insurance
Final Thoughts
Insurance costs for an assisted living facility depend on many moving parts, but understanding typical price ranges and cost drivers helps owners plan effectively. While insurance is a major expense, the right coverage protects your facility from devastating financial loss and long-term operational risk.
Partnering with an experienced provider like Wexford Insurance ensures your coverage is tailored, compliant, and competitively priced.