What insurance does an adult family home need?

Washington defines an adult family home as a residence serving more than one but not more than six adults (RCW 70.128.010), licensed by the Department of Social and Health Services. The rules require two separate coverages: commercial general liability or business liability insurance (WAC 388-76-10191) and professional liability or errors and omissions insurance (WAC 388-76-10192), each with at least $500,000 per occurrence and $1,000,000 general aggregate.

Coverage has to be in force before the first resident is admitted or within ten working days of licensure, whichever comes first. The state and the department must be named as additional insureds, a lapse has to be reported, and a Medicaid contract may require higher limits than the rule does.

Wisconsin adult family homes licensed under DHS 88 are not required to carry liability insurance by rule. They must document homeowners or renters coverage and, if they transport residents, provide a certificate of vehicle liability coverage (DHS 88.04).

Oregon adult foster homes (licensed for no more than five adults) have no liability insurance requirement in the licensing rules. That is a statement about the license, not about the risk.

Professional liability that covers the care you provide, with abuse and molestation coverage included rather than excluded. General liability for the premises. Homeowners coverage endorsed or rewritten for a licensed care business, because a standard homeowners policy typically excludes business activity in the home. Workers compensation for any caregivers you employ. Auto coverage if you drive residents.

The most important check: a standard homeowners policy with a small business endorsement is not care home insurance. Ask in writing whether the policy covers a claim that a resident was hurt because of the care provided.