Top 5 Mistakes When Shopping for Assisted Living Business Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 19
- 2 min read
Running an assisted living facility is rewarding but comes with unique risks. One of the most important steps in protecting your business is choosing the right insurance. Unfortunately, many facility owners make costly mistakes when shopping for coverage.
Understanding these common pitfalls can save your business from financial loss, regulatory issues, and unnecessary stress. Here’s a breakdown of the top 5 mistakes when shopping for assisted living business insurance and tips to avoid them.
1. Not Understanding the Full Scope of Coverage
Many owners assume a single policy will cover everything. General liability, professional liability, property, and workers’ compensation are all separate policies. Missing coverage can leave your facility exposed to lawsuits, property damage claims, or employee injuries.
A low premium may seem appealing, but it could come with gaps in coverage, lower limits, or strict exclusions. Always compare the policy terms, not just the price, and ensure it meets your facility’s specific needs.
3. Ignoring State Regulations and Licensing Requirements
Insurance requirements for assisted living facilities vary by state. Failing to meet these requirements can result in fines or license suspension. Make sure the policy aligns with state minimums for liability, workers’ compensation, and professional coverage.
Read More:
Check your state’s requirements at Medicare.gov State Health Programs.
4. Skipping Risk Management Discounts
Many insurance providers offer premium discounts for safety programs, staff training, and emergency preparedness. Facility owners who ignore risk management strategies often pay more for insurance than necessary.
5. Not Working With a Specialist Insurance Provider
Generic business insurance providers may not fully understand the complexities of senior care. A specialized provider like Wexford Insurance knows the industry, regulatory requirements, and common risks, ensuring you get tailored coverage at a competitive price.
👉 Request a custom quote from Wexford Insurance today.
Final Thoughts
Avoiding these common mistakes ensures your assisted living facility is properly protected, compliant, and financially secure. Taking the time to understand coverage needs, compare policies carefully, leverage risk management, and work with industry specialists can save your facility from costly surprises.
Proper insurance is not just a regulatory necessity—it’s a critical part of safeguarding your residents, employees, and business reputation.
