What insurance do I need to start a group home or care home for seniors?

General and professional liability, ideally on one policy so there is no gap between them. Professional liability is the part that answers a claim that a resident was hurt because of the care you gave or did not give, which is the claim a care home actually faces.

Abuse and molestation coverage. At this size it is often excluded entirely or sublimited to a small amount. Ask for it to be included and for the sublimit to be stated.

Property on the building and contents at replacement cost, or a tenant policy if you lease the house. Workers compensation for your staff (required in most states; in Texas it is optional, but going without it carries its own obligations and exposure). Auto coverage, including hired and non-owned auto, if you or a caregiver will ever drive a resident.

Your state licensing agency may require evidence of liability insurance before issuing or renewing a license, and some states set a minimum amount. Your landlord or lender will usually require specific coverage and to be named on the policy. Some referral agencies and Medicaid waiver programs require their own certificate. Read each of these before buying, because it is far cheaper to buy the right policy once than to fix it after a certificate is rejected.

Buying a general business owner policy because it is quick and inexpensive. It covers the building and slip and fall injuries, and it usually excludes professional services, which means it excludes the care claims that close small homes. The certificate looks fine to a landlord and fails at the first serious incident.

Your license application or the licensing rules for your facility type, your lease or loan agreement, the number of beds and level of care, and your staffing plan. Send those to an agent who works in this class. We review them free and tell you what coverage each document requires.