Does my state require an assisted living facility or care home to carry liability insurance?

Washington, adult family homes. The rules require commercial general liability (or business liability) insurance and professional liability (or errors and omissions) insurance, each at $500,000 per occurrence and $1,000,000 general aggregate (WAC 388-76-10191 and 388-76-10192). Coverage must be in place before the first resident is admitted or within ten working days of licensure, whichever is first, the state and the department must be named as additional insureds, and a Medicaid contract may require more.

California, residential care facilities for the elderly (RCFEs). Health and Safety Code section 1569.605 requires liability insurance of at least $1,000,000 per occurrence and $3,000,000 total annual aggregate. RCFEs that are an integral part of a continuing care retirement community are exempt.

Florida, assisted living facilities. Florida Statutes section 429.275(3) requires a facility to maintain liability insurance coverage that is in force at all times, and the rule (Fla. Admin. Code 59A-36.013) requires proof to be filed with the Agency for Health Care Administration at each license renewal or policy change. No dollar minimum is set, which means the limit you choose is a business decision, not a licensing one.

Texas assisted living facilities (Type A and Type B), Georgia personal care homes, Pennsylvania personal care homes, Oregon adult foster homes, Wisconsin adult family homes and Minnesota assisted living facilities: the licensing statutes and rules do not require general or professional liability insurance. Some require narrower things: Pennsylvania and Wisconsin require vehicle insurance if you transport residents, Wisconsin requires proof of homeowners or renters coverage, and Minnesota requires a bond or insurance for anyone handling resident funds.

Not required is not the same as not needed. A single fall or abuse claim can exceed what a small home is worth, and your landlord, lender, Medicaid contract or referral sources will usually require coverage even where the license does not.

These rules are amended. Before relying on any of them, read the current text at the citation given, and check your lease, loan and any Medicaid or waiver contract, which frequently set higher limits than the state does. For states not listed here, your licensing agency can tell you whether a minimum applies to your facility type. We read that set of documents free and tell you what each one requires.