7 Senior Placement Insurance Mistakes Agents Should Avoid
- Jeff Schmidt
- Nov 24, 2025
- 4 min read
Insurance is one of the most important—and misunderstood—parts of running a senior placement business.
From solo operators to franchisees with Assisted Living Locators, CarePatrol, Senior Care Authority, or Oasis Senior Advisors, many agents make small missteps that can lead to big problems later on.
This article walks you through the most common senior placement insurance mistakes we’ve seen—and how to steer clear of them.
Why Senior Placement Insurance Mistakes Matter
When you refer families to assisted living, memory care, or independent living communities, you're assuming professional risk.
If something goes wrong—whether it's a documentation error, a bad referral, or even an unrelated injury during a facility tour—you could face a costly claim.
And if your policy doesn’t respond the way you expected, you could be left paying legal fees out of pocket.
👉 Learn what coverage may be appropriate for your business
Mistake #1: Only Carrying General Liability
Many new agents assume that general liability is enough. After all, it covers things like slip-and-fall accidents, right?
Yes—but that’s only part of the story.
What’s often overlooked: General liability does not typically cover your professional advice.
If you’re sued because a family believes your referral caused harm, you’ll likely need professional liability insurance (E&O)—not general liability.
Fix: Make sure your policy includes both general and professional liability. They cover very different risks.
Mistake #2: Using a Generic Business Policy
A basic small business owner’s policy (BOP) may not offer the protections senior placement agents actually need. These policies often exclude:
Professional liability
HIPAA-related data risks
Facility-specific endorsements
Required franchise provisions
We've seen agents believe they’re fully covered—only to find out their generic policy may not respond when it matters most.
Fix: Work with an insurance provider that specializes in senior care referral services. 👉 Request a custom quote here.
Mistake #3: Not Meeting Franchise Insurance Requirements
If you’re a franchisee with CarePatrol, Assisted Living Locators, Senior Care Authority, or Oasis Senior Advisors, you’re likely required to carry:
Both general and professional liability
Hired/Non-Owned Auto coverage
Cyber liability
Certificate of Insurance naming your franchisor as an additional insured
Skipping these or using incorrect limits may put you out of compliance—and at risk of losing franchise support.
Fix: Review your franchise agreement and ensure your policy satisfies every clause. Most franchisee policies range from $2,000–$2,500 per year due to these added requirements.
Mistake #4: Underinsuring Your Policy Limits
Some agents go with bare minimum limits to save a few hundred dollars—only to discover that the protection may fall short.
Example: A $250,000 policy might not be enough to cover legal defense and a settlement, especially in high-cost states like California or Florida.
At CarePro, our standard coverage includes $1,000,000 per incident / $3,000,000 aggregate—a level that may better align with typical facility and network requirements.
Fix: Don’t just ask “what’s the cheapest.” Ask, “what will actually protect me?”
Mistake #5: Forgetting About Cyber Liability
You may not think of yourself as a tech company—but you likely store personal health and financial information for your clients.
That makes you a potential target for:
Email phishing
Ransomware
Lost or stolen devices
HIPAA violations
Cyber claims may not be covered by standard policies unless explicitly included.
Fix: Add a cyber endorsement to your policy, especially if you’re handling intake forms, medical documents, or online client communication.
Mistake #6: Skipping Hired/Non-Owned Auto Coverage
If you ever drive your personal car for business—whether to tour a facility, meet a family, or attend an event—your personal auto insurance may not cover an accident.
Many agents don’t realize this until it’s too late.
Hired/Non-Owned Auto Liability may help cover you in these situations—and it’s usually required for franchisees.
Fix: Include this inexpensive but vital coverage if your business involves any driving.
Mistake #7: Not Having a Certificate of Insurance (COI) Ready
Facilities and referral partners often require proof of insurance before allowing you to refer clients. Without it, you could lose access to valuable contracts and relationships.
Worse, some agents wait until it’s requested—only to find out their policy doesn’t include the necessary provisions.
Fix: Make sure your policy allows for fast COI generation and can list additional insureds (like facilities or franchisors).
👉 We provide COIs at no extra charge with every policy.
Recap: Common Senior Placement Insurance Mistakes
Mistake | What to Do Instead |
Only carrying general liability | Add professional liability to cover referral disputes |
Buying a generic business policy | Use a specialized provider |
Ignoring franchise insurance requirements | Review your franchise agreement thoroughly |
Carrying low policy limits | Start with $1M/$3M at minimum |
Skipping cyber coverage | Add it, especially if handling sensitive client info |
Not including Hired/Non-Owned Auto | Add if you use your car for work |
Failing to provide a COI | Keep it ready and update annually |
Final Thoughts
Insurance is one of those things you never want to test the hard way. Avoiding these senior placement insurance mistakes can mean the difference between confidently running your business—or scrambling when a client or facility files a claim.
Whether you're just getting started or running a busy franchise territory, having the right policy in place isn’t just a formality—it may be your first line of defense.
Disclaimer: This content is for informational purposes only and does not constitute legal or insurance advice. Coverage availability, requirements, and terms may vary by carrier and state. Please consult a licensed insurance advisor for personalized guidance.
