What Kind of Insurance Does an Assisted Living Facility Need?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 26, 2025
- 2 min read
Running an assisted living facility means taking responsibility for residents, staff, property, and day-to-day risks. The right insurance coverage protects your business financially and legally while giving peace of mind to families who trust you with their loved ones.
This guide covers the essential insurance policies every assisted living facility needs, why they matter, and how Wexford Insurance can help.
Why Assisted Living Facilities Need Specialized Insurance
Assisted living facilities face a wide range of risks: resident injuries, medication errors, slip-and-fall accidents, employee injuries, property damage, and more.
Without proper insurance, a single claim could cost tens or hundreds of thousands of dollars.
Essential Insurance Policies for Assisted Living Facilities
Below are the core insurance policies that assisted living facility owners should have in place.
What it covers:
Slip-and-fall injuries
Resident or visitor property damage
Bodily injury claims
This is one of the most important policies for assisted living facilities because accidents are common in senior care environments.
(Also known as Medical Malpractice or Errors & Omissions insurance)
What it covers:
Medication administration mistakes
Negligence or improper care claims
Alleged errors in resident care
This coverage protects your caregivers, nurses, and administrative staff from claims related to care services.
What it covers:
Fire, storm, and water damage
Damaged equipment and furnishings
Loss of business property
Care facilities rely on expensive equipment and essential building structures, so property coverage is critical.
What it covers:
Employee injuries
Medical bills
Lost wages
With staff constantly assisting residents, the risk of employee injuries is high. Workers’ comp is required in most states.
If your facility transports residents, delivers medication, or uses company vehicles, you need auto coverage.
What it covers:
Accidents involving facility vehicles
Property damage
Injury claims
Assisted living facilities store sensitive resident data—medical records, payment information, personal details.
What it covers:
Data breaches
Ransomware attacks
HIPAA-related violations
Unfortunately, facilities must protect against allegations of:
Resident abuse
Neglect
Mistreatment
Whether claims are true or false, defense costs can be extremely high. This policy is critical for senior care environments.
Umbrella insurance extends your liability limits. This gives you additional protection if a claim exceeds the limits of your General Liability or Professional Liability policy.
Protect Your Assisted Living Facility with Wexford Insurance
Wexford Insurance specializes in helping assisted living facility owners nationwide find the right coverage at competitive rates. Because we work with carriers that insure senior care facilities, we tailor policies to your size, services, and risk level.
Final Thoughts
Assisted living facilities face unique risks every day. Having the right insurance ensures your business stays compliant, financially secure, and protected from unexpected claims. With the right coverage—and the right insurance partner—you can focus on what matters most: providing high-quality care to your residents.
Contact us today.
