Quick Answer: Assisted living facility insurance is a layered program built around general liability, professional liability, abuse and molestation coverage, commercial property, and workers compensation. Most operators add commercial auto, business interruption, cyber, and an umbrella. Illinois will not license an assisted living establishment without documentation of adequate liability insurance. The claims behind the coverage are large: CNA puts the average assisted living professional liability claim at $287,597.
What Assisted Living Facility Insurance Covers
General Liability
Helps address claims that a resident or visitor was injured on the premises, including the falls that make up most assisted living claims.
Professional Liability
Helps address claims that care fell below the accepted standard, from medication errors to a missed change in a resident's condition.
Abuse and Molestation
Helps pay to defend and resolve allegations of abuse, including ones that are never substantiated. Some policies exclude it or cap it at a low sublimit, so it needs its own look.
Commercial Property
Helps protect the buildings, furnishings, and equipment against covered causes of loss such as fire, wind, and theft.
Workers Compensation
Pays for medical care and part of lost wages when staff are hurt on the job. Lifting and repositioning residents is the leading cause.
Employment Practices Liability
Helps address claims from employees alleging wrongful termination, harassment, discrimination, or wage violations.
Commercial Auto
Covers facility vehicles used to transport residents and supplies, and can extend to employees driving their own cars for the facility.
Business Interruption
Designed to help replace lost income and cover continuing expenses when a covered loss forces the facility to close or relocate residents.
Cyber Liability
Helps with the cost of responding to a breach of resident records and health information.
Often added: a commercial umbrella above the liability policies. For a line-by-line walkthrough, read the complete guide to insurance for assisted living facilities.
The Level of Care Decides the Program
Two buildings with the same number of beds can need very different insurance. What separates them is how much hands-on care the staff provide. Underwriters call that acuity, and it shapes the whole program.
Independent and senior living. Residents live on their own and the community provides housing, meals, and activities. With little or no care exposure, the risk looks like property and premises liability. See senior living facility insurance.
Assisted living. Staff help with bathing, dressing, and medication. Hands-on care brings professional liability and abuse exposure that independent living does not carry.
Memory care. The most expensive class to insure. Elopement, more frequent falls, and behavioral incidents raise both general and professional liability. A dedicated memory care wing changes the rating for the whole facility.
Running a small residential home instead? See group home insurance. Providing skilled nursing? Read how nursing home and assisted living insurance differ, because care beyond your license can lead to an exclusion.
Read the abuse and molestation wording first
Some liability policies exclude abuse and molestation. Others cover it with a sublimit far below the policy limit. CNA reports resident abuse as the costliest allegation in aging services, at an average of $384,088 a claim. Check what your policy says before a claim tests it. More in our guide to abuse and molestation coverage for assisted living.
What Assisted Living Claims Cost
Limits should be set against what claims actually cost. These are the most recent published figures.
| Published figure | Amount | Source |
|---|---|---|
| Average assisted living professional liability claim | $287,597 | CNA Aging Services Claim Report, 12th edition, claims closed 2021 to 2023 |
| Share of assisted living claims that are resident falls | 53.0% | CNA Aging Services Claim Report, 12th edition |
| Average resident abuse claim, all aging services | $384,088 | CNA summary of the report |
| Average elopement claim, all aging services | $303,883 | CNA summary of the report |
| Expected claim cost per occupied senior living unit | $760 per year | Marsh and Oliver Wyman 2024 benchmark, as reported by Argentum |
| Staff injuries, nursing and residential care | 5.5 per 100 workers, against 2.3 for private industry | Bureau of Labor Statistics, 2024 |
CNA counts professional liability claims that closed from 2021 through 2023 with an indemnity payment of at least $10,000. The Marsh figure is a 2024 forecast across senior living, which is broader than assisted living alone. None of these is a premium.
What Illinois requires. To be considered for a license, an assisted living establishment must provide documentation of adequate liability insurance (210 ILCS 9/30). The section sets no dollar minimum, so your limits are driven by your lender, your contracts, and your own risk. Workers compensation is required once you have one employee, even a part-time one (Illinois Workers' Compensation Commission).
What Assisted Living Insurance Costs
No carrier, regulator, or trade group publishes what assisted living insurance costs, so we will not print a per-bed figure. Liability is rated per occupied bed. These are the eight things an underwriter prices.
| Cost factor | How it moves the premium | What to have ready |
|---|---|---|
| Acuity | The more hands-on care you provide, the more professional liability exposure. Memory care costs the most to insure. | License type and the share of residents in memory care |
| Beds and occupancy | Liability is rated per occupied bed, so both the bed count and how full you are move the total. | Licensed beds and current occupancy |
| Services | Medication management, transportation, and therapies each add exposure. | A list of the services you provide in house |
| Claims history | A prior fall, abuse, or care claim raises the price and can narrow the carriers that will quote. | Loss runs, ideally five years |
| Abuse prevention | Documented background checks, training, and reporting procedures affect both the price and whether full abuse coverage is offered. | Your written abuse prevention and reporting policy |
| Fall prevention | Risk assessments, transfer procedures, and incident logs reduce the claim that occurs most often. | Your fall prevention program and incident log |
| Staffing | Turnover and short staffing raise both care errors and workers compensation claims. | Employee count, payroll by role, and turnover |
| Buildings | Replacement cost, age, construction, and sprinklers drive the property premium. | Year built, construction type, updates, and replacement value |
Workers compensation is priced on payroll by job class, and commercial auto per vehicle. For the published claim costs behind the rate, read our guide to assisted living insurance cost.
PROOF IT WORKS
We saved a Florida facility more than $20,000 a year
A mid-sized assisted living facility came to us with a renewal more than $20,000 above its prior premium and exclusions it could not live with. We rebuilt the submission, took it to carriers that write assisted living, and came back with a lower price and broader liability coverage.
What we need for an assisted living insurance quote
Senior care underwriters ask for the same items on every facility. Having them ready gets your quote back sooner and on better terms.
- License type, licensed beds, and current occupancy
- Services you provide: memory care, medication management, transportation, therapies
- Employee count and payroll by role
- Loss runs, ideally five years, with a short note on any open claim
- Your current policy declarations pages
- Each building: year built, construction type, sprinklers, and replacement value
- Your written abuse prevention, background check, and incident reporting procedures
- Your fall prevention program
- Your most recent state survey or inspection results
- Vehicles used to transport residents, and who drives them
What Our Clients Say
Why Assisted Living Operators Choose Pro Insurance Group
An Agency, Not a Carrier
We are an independent agency. We work for the operator and shop the market on your behalf.
Senior Care Markets
We take your facility to the specialty carriers and programs that write assisted living, including memory care.
Your Story, Told Well
Underwriters price what they can see. We present your loss history and your controls so the facility is rated on its merits.
Support After the Sale
Claim guidance, certificates, and a policy review before every renewal.
Operating several facilities? We have access to group captive programs for qualifying multi-facility groups with strong safety records. For directors and administrators: the insurance checklist for facility operators, the 2026 assisted living insurance gap report, and risk management strategies every operator should know.
Assisted Living Facility Insurance FAQ
What insurance does an assisted living facility need?
A layered program: general liability, professional liability, abuse and molestation coverage, commercial property, and workers compensation at the core. Most operators add commercial auto, business interruption, employment practices liability, cyber liability, and a commercial umbrella. The right limits depend on bed count, acuity, and the services you provide.
How much does assisted living facility insurance cost?
No carrier, regulator, or trade group publishes a premium benchmark for assisted living, and we will not invent one. Liability is rated per occupied bed and rises with acuity, so memory care costs the most. What is published is claim cost: CNA puts the average assisted living professional liability claim at $287,597. Our cost guide explains what moves the price.
Is insurance required to license an assisted living facility in Illinois?
Yes. To be considered for a license under the Illinois Assisted Living and Shared Housing Act, an establishment must provide documentation of adequate liability insurance (210 ILCS 9/30). That section does not set a dollar minimum. Illinois also requires workers compensation for an employer with even one employee.
Does assisted living insurance cover abuse and molestation?
Only when the policy says so. Some policies exclude abuse and molestation or cap it at a low sublimit, so full coverage may need an endorsement or a specialty carrier. CNA reports resident abuse as the costliest allegation in aging services, at an average of $384,088, so the limit should be a real one.
What are the most common assisted living insurance claims?
Resident falls. They were 53.0% of assisted living closed claims in CNA's most recent aging services claim report, which covers claims closed from 2021 through 2023. Medication errors, elopement, and abuse allegations are less frequent and more costly per claim.
Does memory care cost more to insure?
Yes. Memory care and dementia units are the most expensive class to insure, because elopement, more frequent falls, and behavioral incidents increase both general and professional liability exposure. CNA puts the average elopement claim at $303,883.
What is the difference between assisted living and senior living insurance?
Assisted living involves hands-on resident care, which adds professional liability and abuse exposure. Independent and senior living without hands-on care looks more like property and premises liability and costs less to insure. We build the program around the level of care you actually provide.
Does Pro Insurance Group write assisted living coverage outside Illinois?
Yes. We place assisted living and senior care programs in Illinois and 40+ states, from single residential care homes to multi-building campuses.
Is Pro Insurance Group an insurance company?
No. Pro Insurance Group is an independent insurance agency, not an insurance carrier. We work for the operator, take the facility to the carriers and programs that write assisted living, and place the coverage with the company that fits.
Get Your Assisted Living Insurance Quote
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Reviewed by Neal Fusco, VP Commercial Lines
25 years in insurance, including 16 at Zurich North America in workers' compensation managed care and claims.
Illinois licensed insurance producer #18515626