If you're running an assisted living facility or senior care business in Florida, you're in the business of caring for some of the most vulnerable people in your community. It's rewarding work, but it also comes with serious responsibilities—and serious insurance requirements. Florida doesn't mess around when it comes to protecting residents, and understanding what coverage you need is essential before you even apply for your license.
Here's what catches most new facility owners off guard: Florida law requires you to have insurance, but it doesn't spell out exactly how much. You'll need to work with the Agency for Health Care Administration to determine the right coverage amounts for your specific situation. This guide will walk you through what's required, what's recommended, and how to make sure you're properly protected.
The Must-Have: General Liability Insurance
Under Florida Statute 429.275, every assisted living facility must maintain liability insurance coverage that stays in force at all times. This isn't optional—it's a licensing requirement overseen by the Agency for Health Care Administration (AHCA). The insurance must cover legal liability for death, injury, disability, or property damage.
What makes Florida different from many states is that there's no specific minimum dollar amount written into the law. Instead, you'll need to contact AHCA to determine appropriate coverage levels for your facility. Industry standards typically see facilities carrying $1,000,000 per occurrence with a $2,000,000 aggregate limit, but your requirements may vary based on your facility's size, services offered, and licensed capacity.
When you renew your policy or switch insurance companies, you must file updated documentation with AHCA's Central Office. This documentation needs to include your facility's name and street address, a statement that you're an assisted living facility, your licensed capacity, and your coverage dates. Missing this step can put your license at risk.
Workers' Compensation: Know Your Thresholds
Workers' compensation is another legal requirement for Florida assisted living facilities, and the rules here are more straightforward. If you have four or more employees—including yourself as the owner—you must carry workers' compensation insurance. This applies whether your employees work full-time or part-time.
The good news for 2025? Workers' comp rates in Florida have decreased by 1.0% for the voluntary market, and the maximum weekly compensation benefit has increased to $1,295 (up from $1,260 in 2024). This coverage protects your employees if they're injured on the job, covering medical expenses and lost wages. More importantly, it protects your business from potentially devastating lawsuits.
Here's something many facility owners don't realize: even if you have fewer than four employees, getting workers' comp insurance is still a smart move. Workplace injuries in senior care are common—back injuries from helping residents, slip-and-fall accidents, exposure to illnesses. Without coverage, one serious injury could bankrupt your business.
The Surety Bond Requirement
If your facility serves as a representative payee or holds power of attorney for any resident, Florida requires you to purchase a surety bond. This bond protects residents if you mismanage their funds or property. It's a safeguard against financial abuse, and it's required as part of your initial license application.
The bond amount varies depending on the number of residents you manage funds for and the total value of those funds. Don't skip this requirement—even if you handle resident finances with the best intentions, the bond protects both your residents and your business reputation.
Professional Liability: Not Required, But Critical
Professional liability insurance (also called malpractice insurance or errors and omissions insurance) isn't explicitly mandated by Florida law, but it's one of those things you'll regret not having if you ever need it. This coverage protects you against claims of negligence, inadequate care, or mistakes in the services you provide.
Think about it this way: general liability covers injuries and property damage. Professional liability covers allegations that you failed to provide appropriate care, administered medication incorrectly, or didn't properly assess a resident's needs. In the senior care industry, where residents are often vulnerable and families are watchful, this coverage can be the difference between surviving a lawsuit and closing your doors.
The Licensing Process and Insurance Documentation
Getting your Florida assisted living facility license requires several steps, and insurance is woven throughout the process. You'll need to submit either a declarations page or certificate of insurance from your provider as part of your AHCA application. This documentation proves you have the required coverage before you can legally operate.
Florida assisted living licenses are valid for two years. Before your renewal date, you'll need to file updated insurance documentation showing continuous coverage. The paperwork must come directly from your insurance company and include specific details about your facility. Stay on top of these deadlines—letting your insurance lapse or failing to submit renewal documentation can result in license suspension or revocation.
Your facility will be regulated under Chapter 429, Florida Statutes, and Florida Administrative Code Rule 58A-5. These regulations cover everything from physical plant standards to fire safety, sanitation, background screening, and financial responsibility. Insurance requirements fall under the fiscal standards section, Rule 59A-36.013.
What Coverage Actually Costs
Insurance costs for assisted living facilities vary widely based on your facility's size, location, services, and claims history. A small facility with standard $1,000,000/$2,000,000 general liability coverage typically pays between $87 and $99 per month. Workers' compensation costs depend on your payroll and the number of employees you have.
Professional liability insurance adds to your costs but provides essential protection. The exact premium depends on your facility's capacity, services offered, and whether you have medical staff on-site. Bundling your coverages with one insurance company often results in discounts and simplified administration.
Getting Started: Your Action Plan
Before you apply for your Florida assisted living facility license, contact the Agency for Health Care Administration to discuss your specific insurance requirements. Their Assisted Living Unit can guide you on appropriate coverage amounts based on your facility's characteristics. You can reach them at 2727 Mahan Drive, MS 30, Tallahassee, Florida, 32308-5407.
Next, shop around for insurance providers who specialize in senior care facilities. Not all business insurance carriers understand the unique risks you face, and working with a specialist can save you money while ensuring you have appropriate coverage. Get quotes for general liability, workers' compensation, and professional liability as a package.
Finally, build insurance renewal into your annual calendar. Set reminders three months before your policy expires to start the renewal process, and submit updated documentation to AHCA well before your deadline. Staying ahead of renewals prevents last-minute scrambling and potential coverage gaps that could jeopardize your license.
Running an assisted living facility in Florida means accepting responsibility for your residents' wellbeing and safety. The insurance requirements exist to protect them, your employees, and your business. By understanding what's required and going beyond the minimums where it makes sense, you'll build a more resilient operation that can weather the inevitable challenges that come with senior care.
