General Liability vs. Professional Liability for Senior Placement Agencies: Why You Need Both
- Jeff Schmidt
- Aug 18
- 4 min read
If you operate a senior placement business, you already know your work involves both hands-on interaction and high-stakes decision-making. You’re not just helping families find the right care—you’re offering professional guidance that carries real consequences.
That’s why every senior placement agent and agency should carry both general liability and professional liability insurance—no exceptions.
Each type of policy protects against different risks, and having just one is like locking your front door but leaving the back door wide open.
This guide explains exactly what these policies do, how they work together, and why both are essential to fully protecting your business.
General Liability vs. Professional Liability: What’s the Difference?
Let’s start with the basics:
General liability insurance protects your business against claims involving physical injuries or property damage.
Professional liability insurance (also called errors and omissions or E&O insurance) protects you against claims that your advice, recommendations, or professional actions caused harm.
Both policies are foundational—because senior placement agents operate in a world where both physical risk and professional risk are present every day.
Examples of Why You Need Both
Scenario 1: Client Injury During a Facility Tour
You accompany a client and their elderly parent to a senior living tour. The parent trips and falls during the visit and later requires surgery.
The family sues, claiming that because you arranged the visit and accompanied them, you were partially responsible for the injury.
This type of situation would typically fall under general liability insurance, which may cover bodily injury claims that occur during business operations.
Scenario 2: Dispute Over a Misplaced Referral
You refer a family to a memory care facility that later receives a citation for neglect. The family claims you should have known about the violation and sues your agency for professional negligence.
This is where professional liability insurance comes in. These policies are designed to respond to claims involving your advice, recommendations, and oversight—or the alleged lack thereof.
Why Every Senior Placement Agent Must Carry Both
No matter how careful or experienced you are, claims can happen.
Some agents assume general liability is enough—but it’s not.
Others believe professional liability covers everything—it doesn’t.
If you’re missing one of these coverages, you’re leaving a major gap in your protection.
Here’s why you need both:
You meet with families in person, tour facilities, and coordinate on-site care transitions—exposing you to physical risks.
You offer professional advice about highly sensitive decisions—opening you up to lawsuits over misplacement, omissions, or documentation errors.
Many referral networks and facilities require proof of both policies before they’ll allow you to operate or send clients.
Legal fees from even a frivolous claim can exceed $20,000—and without coverage, that comes directly out of your pocket.
In short, you’re exposed on both fronts. A general liability-only policy won’t help you if a client sues you for negligent advice. And a professional liability-only policy won’t help you if someone falls during a meeting or facility tour.
Coverage Comparison Chart
Coverage Type | General Liability | Professional Liability |
Bodily Injury | ✅ Typically covered | ❌ Not covered |
Property Damage | ✅ Typically covered | ❌ Not covered |
Allegations of Bad Advice | ❌ Not covered | ✅ May be covered |
Misrepresentation Claims | ❌ Not covered | ✅ May be covered |
HIPAA/Confidentiality Breach | ❌ Not covered | ✅ May be covered (if included) |
Legal Defense | ✅ Typically included | ✅ Typically included |
Coverage Limits: What Should You Carry?
At CarePro Insurance, we offer standard policy limits of:
$1,000,000 per incident
$3,000,000 aggregate annually
These limits typically meet most contract requirements and offer a strong foundation for solo agents and small agencies. If you operate in higher-risk states or work with complex clientele, higher limits may be advisable.
What About Additional Coverage?
As your business expands, so does your risk profile. You may also want to include:
Non-Owned Auto Insurance – For liability while driving your personal vehicle for client meetings or facility tours.
Cyber Liability Insurance – May cover HIPAA violations, phishing attacks, or lost client data.
Workers’ Compensation – Legally required in most states if you hire employees.
Employment Practices Liability Insurance (EPLI) – May help protect you from employee-related lawsuits.
We can help you build a comprehensive package that fits your unique operations. 👉 Start your custom quote here.
The Cost of Comprehensive Coverage
For most solo placement agents, carrying both general and professional liability insurance costs between:
$1,400–$1,800 per year
Premiums may be higher for:
Multi-agent or multi-state agencies
Add-on coverage like cyber or auto
Higher liability limits
All policies are underwritten individually. We’ll work with you to structure a plan that aligns with your risk level and business model.
What Happens If You Only Carry One Policy?
Here’s what could happen if you skip one side of your insurance:
No General Liability?
You meet a client in a coffee shop.
They slip on a wet floor and break a hip.
You’re named in the lawsuit because you invited them there.
Without general liability insurance, you may be personally liable for medical bills and legal costs.
No Professional Liability?
You refer a client to a facility that later has serious safety issues.
The family alleges you failed to do proper due diligence.
They file a claim for emotional and financial damages.
Without professional liability coverage, you may face a long, expensive lawsuit—even if you did nothing wrong.
Required by Referral Networks and Facilities
More senior living providers and national placement networks now require agents to provide:
Certificates of Insurance (COIs)
Minimum limits of $1M/$3M or higher
Both general and professional liability coverage
If you don’t carry both, you may not be eligible to refer clients—or maintain compliance with franchise contracts.
Final Thoughts
Every senior placement agent faces two kinds of risk: physical accidents and professional disputes.
That’s why both general and professional liability insurance are essential. Carrying just one puts your entire business at risk—financially, legally, and reputationally.
At CarePro Insurance, we help placement professionals across the country structure insurance that fits their work—whether you’re a solo consultant, a franchisee, or running a multi-agent agency.
Disclaimer: This content is for informational purposes only and does not constitute legal or insurance advice. Policy terms, availability, and coverage may vary by carrier and jurisdiction. Please consult a licensed insurance advisor for specific guidance.
