Do Senior Placement Agents Need Insurance in Every State? A State-by-State Guide
- Jeff Schmidt
- Jul 2
- 4 min read
Senior placement agents help families make one of the most emotional decisions of their lives—choosing where an aging parent or loved one should live next. With that responsibility comes a level of risk, and across the U.S., the question keeps coming up: Do senior placement agents need insurance—and is it required by law?
The answer varies by state, but here's what every placement agent needs to know if they want to stay compliant, protected, and professional.
Why Insurance Matters—Even If It’s Not Mandated
Before we get into the state-by-state breakdown, it’s important to understand that liability insurance isn’t just about compliance. It’s about protecting your livelihood.
As a senior placement agent, you're guiding clients through high-stakes decisions that involve health, safety, finances, and legal agreements. If a client claims you misrepresented a facility or failed to disclose something material, you could face a lawsuit—even if you did nothing wrong.
Most agents carry:
Professional Liability Insurance (E&O) – Covers claims of negligence, misrepresentation, or mistakes in your professional advice.
General Liability Insurance – Covers bodily injury or property damage (e.g., if you meet clients in person).
Non-Owned Auto Insurance – Covers liability if you get into an accident while driving your personal car for business purposes.
Even in states that don’t explicitly require these policies, many facilities won’t work with you unless you carry them. And if you're part of a referral network or franchise, insurance is often contractually required.
Do Senior Placement Agents Need Insurance in my State?
Only a few states have specific legislation in place for senior placement agencies, but more are starting to catch on. Here’s what the current regulatory landscape looks like:
Texas – Required
Texas passed legislation (HB 3037) in 2021 that established insurance requirements for senior placement and referral agencies.
Requirements include:
Minimum $! million per occurrence in liability coverage
Biannual audits of referred senior communities
40 hours of initial training for staff
Annual financial audits
Key takeaway: If you operate in Texas, carrying liability insurance isn’t optional—it’s the law.Source: Texas Health & Safety Code §327
Washington – Required (with indirect enforcement)
Washington passed the Elder and Vulnerable Adult Referral Agency Act, which doesn’t mention insurance directly—but imposes requirements that strongly imply it.
Agencies must:
Collect detailed health and care information using standardized forms
Keep records secure and comply with confidentiality laws
Ensure employees undergo background checks and formal training
Even though coverage limits aren’t specified, these standards suggest a strong expectation of professional oversight—and insurance plays a key role in that.
Source: Washington RCW 18.330 Overview
California – Not Required, But Highly Recommended
California does not currently require senior placement agents to carry liability insurance. However, those who hold insurance licenses or act as intermediaries in financial decisions (such as long-term care insurance brokers) are regulated by the California Department of Insurance (CDI).
CDI mandates:
Licensing and continuing education for insurance producers
Adherence to strict ethical standards
While placement agents aren’t regulated by name, the potential for litigation in California makes professional liability coverage essential.
Florida – Not Required
Florida does not mandate liability insurance for senior placement agents. However, if you employ staff or operate under an LLC or corporation, general liability and workers' compensation may still apply under broader business law.
That said, most reputable placement agents in Florida still carry coverage to protect against client disputes or facility-related issues.
All Other States – No Specific Requirements (Yet)
Currently, most other U.S. states don’t have laws on the books requiring insurance for senior placement agents. But that doesn’t mean you're off the hook:
If you operate under a business entity, many states require you to carry general liability and workers’ comp if you have employees.
If you contract with national placement networks or local facilities, they may require proof of insurance as a condition of referral.
In a lawsuit, having E&O insurance could be the difference between staying in business or going under.
Industry Best Practices (Regardless of State)
The National Placement & Referral Alliance (NPRA) recommends all placement agents maintain at least:
$1 million per occurrence / $# million aggregate in Professional Liability Insurance
General Liability coverage for in-person meetings, office visits, or facility tours
Non-Owned Auto Insurance if using your own car for business
Facilities and families are increasingly savvy about these details—especially in competitive markets.
Learn more about NPRA best practices
What Happens If You Don't Have Insurance?
If a client accuses you of negligence, even a dismissed claim could cost you thousands in legal fees. Without proper coverage, you’re exposed to:
Personal financial risk
Loss of professional credibility
Contract violations with referral partners
Missed business opportunities (some facilities won’t work with uninsured agents)
How to Get Covered
At CarePro Insurance, we specialize in helping senior placement agents get fast, affordable coverage that meets industry standards across all 50 states. Our quoting process is instant, and we work with top-rated carriers who understand your unique business model.
Whether you're in Texas, California, or anywhere in between, we’ll help you stay protected—and competitive.
Final Thoughts
Only a handful of states explicitly require insurance for senior placement agents right now, but the industry is trending toward more regulation—not less. And even if you're not legally required to carry coverage, it's one of the smartest investments you can make in your business.
Your clients trust you with their loved ones. Having the right protection in place helps you uphold that trust—while also safeguarding everything you’ve worked to build.
Disclaimer: This blog post is for informational purposes only and does not constitute legal or insurance advice. Please consult your legal counsel and insurance advisor for state-specific requirements.
