Running a senior care or assisted living facility means you're responsible for some of the most vulnerable people in your community. And here's what keeps many facility owners up at night: even when your staff does everything right, accidents happen. A resident slips on a freshly mopped floor. A visitor trips over a threshold. A contractor damages property during routine maintenance. Each of these scenarios could result in a lawsuit that threatens your facility's financial future.
That's where general liability insurance comes in. It's the foundation of your facility's risk management strategy, protecting you against claims of bodily injury and property damage that occur on your premises. Most states require you to carry it, and you'll need to provide certificates of insurance to prospective residents, vendors, and property owners. But beyond meeting legal requirements, general liability coverage is about protecting the business you've built and ensuring you can continue serving your community when the unexpected happens.
What General Liability Insurance Covers in Senior Care
General liability insurance protects your senior care facility against third-party claims for bodily injury and property damage. Think of it as your defense against accidents that happen on your property or as a result of your facility's operations. The coverage typically includes three main components: bodily injury liability, property damage liability, and medical payments to others.
Bodily injury claims are the most common in senior care settings. Slip-and-fall accidents top the list—a resident loses their balance in the hallway, a family member slips on wet tile in the lobby, or a delivery person trips over equipment. These incidents can result in serious injuries like broken hips, head trauma, or back injuries that require extensive medical treatment. Your general liability policy covers the medical expenses, legal defense costs, and any settlements or judgments if you're found liable.
Property damage coverage handles situations where your facility or staff accidentally damages someone else's property. This might include a staff member backing into a visitor's car in the parking lot, a maintenance worker accidentally damaging a contractor's equipment, or damage to personal belongings during resident care. While these claims tend to be smaller than bodily injury cases, they're still important to have covered.
Medical payments coverage is a helpful feature that pays for immediate medical expenses regardless of fault. If a visitor trips and needs stitches, you can cover those costs without admitting liability or waiting for a lawsuit. This goodwill gesture often prevents minor incidents from escalating into larger legal disputes.
Understanding Coverage Limits: Occurrence vs. Aggregate
When you're shopping for general liability insurance, you'll encounter two critical numbers: per-occurrence limits and aggregate limits. Understanding the difference is essential because both affect how much protection you actually have.
The per-occurrence limit is the maximum your insurer will pay for a single claim or incident. For senior care facilities, the industry standard has traditionally been $1 million per occurrence. This means if a resident slips and falls, resulting in a lawsuit that settles for $750,000, your policy would cover the entire amount (assuming you're found liable). However, if that same incident resulted in a $1.5 million judgment, you'd be responsible for the additional $500,000 out of pocket.
The aggregate limit is your total coverage for all claims during your policy period, which is typically one year. The standard aggregate is usually double your per-occurrence limit—so $2 million aggregate for a $1 million per-occurrence policy. Here's what catches facility owners off guard: once you've exhausted your aggregate limit, you're self-insured for the rest of the policy year, even if each individual claim was below your per-occurrence limit.
In 2025 and 2026, many facilities are increasing their coverage limits to $2 million per occurrence and $4 million aggregate. This trend reflects the rising cost of medical care, increasing litigation settlements, and the desire to better protect against severe claims. Some states, like California, mandate minimum coverage of $1 million per occurrence and $3 million aggregate for residential care facilities. Colorado requires $500,000 per incident and $3 million annual aggregate for assisted living facilities.
Why Senior Care Facilities Have Unique General Liability Needs
Your facility faces different risks than a typical business. The people in your care often have mobility challenges, cognitive impairments, or chronic health conditions that increase the likelihood of accidents. A fall that might result in a bruise for a younger person can mean a broken hip, extended hospitalization, and costly rehabilitation for an elderly resident.
You also have constant foot traffic—residents, family members, healthcare providers, delivery personnel, maintenance contractors, and inspectors all move through your facility daily. Each person represents a potential claim if they're injured on your property. This is why general liability insurance for senior care facilities typically costs more than coverage for standard commercial operations. Insurers recognize the elevated risk and price accordingly, with general liability premiums typically ranging from $150 to $300 per licensed bed, depending on your facility size, amenities, and claims history.
Another consideration specific to senior care: watch out for sublimits in your policy. Some insurers have started introducing low sublimits for common claim types like bedsores or resident elopement incidents. Since these are among the most frequent claims in assisted living, a low sublimit can leave you seriously underinsured. Always review your policy carefully to understand any sublimits that might apply.
General Liability vs. Professional Liability: Why You Need Both
Here's where facility owners sometimes get confused: general liability insurance does not cover professional mistakes or negligent care. That requires separate professional liability insurance (also called errors and omissions or malpractice insurance). The two policies work together but cover fundamentally different risks.
General liability covers premises-related accidents—the resident who trips on an uneven floor, the visitor who slips on ice in your parking lot, or damage to personal property. Professional liability covers care-related errors—medication mistakes, failure to provide adequate assistance with activities of daily living, or improper assessment of a resident's condition.
Most comprehensive insurance programs for senior care facilities include both general liability and professional liability coverage, often with matching limits of $1 million to $3 million per claim. Many facilities also carry an umbrella policy that sits above both coverages to provide additional protection against catastrophic claims. This layered approach gives you robust protection whether the claim stems from a facilities issue or a care delivery problem.
Certificate of Insurance Requirements
You'll need to produce certificates of insurance frequently. Prospective residents and their families can request proof of coverage before signing admission agreements. Many states require you to provide a written statement confirming that you maintain liability insurance, often on a specific form provided by the state licensing department. Property owners, vendors, and contractors will ask for certificates naming them as additional insureds before allowing you to operate or do business with them.
Your insurance agent can typically issue certificates within a few hours or days. The certificate shows your policy number, coverage limits, effective dates, and any additional insureds. Keep your agent's contact information handy because you'll be requesting these certificates regularly as part of doing business in the senior care industry.
Getting Started with General Liability Coverage
When you're ready to get coverage, start by working with an insurance agent or broker who specializes in senior care facilities. They'll understand the unique risks your facility faces and can help you navigate state-specific requirements. Be prepared to provide information about your facility including licensed capacity, types of care provided, staffing levels, safety protocols, and any prior claims history.
As you evaluate quotes, don't just focus on price. Look at the coverage limits, check for restrictive sublimits, understand the deductible structure, and review what's excluded from coverage. Ask about additional coverages that might benefit your facility, such as evacuation expense reimbursement, public relations coverage, or employee benefits liability. The right general liability policy becomes a partnership that protects your residents, your staff, and the business you've worked hard to build.
