General Liability vs. Professional Liability for Senior Placement Agents: What’s the Difference?
- Jeff Schmidt
- Sep 1
- 5 min read
If you're running a senior placement business, you already know that liability exposure is real. But when it comes to insurance, many agents aren’t sure what type of coverage they actually need.
Do you need general liability? Professional liability? Both?
In this guide, we’ll break down general liability vs professional liability for senior placement agents, using real-world examples, industry standards, and what we’ve seen from working with agencies of all sizes across the U.S.
Why This Distinction Matters
You’ve built your business on trust—helping families find safe, supportive environments for their aging loved ones. But even with the best intentions, things can go wrong. And if you’re not carrying the right coverage, one lawsuit could be enough to put your business at serious risk.
Here’s the problem: many agents don’t understand the difference between general liability and professional liability insurance—or worse, assume they’re the same thing.
They’re not. And if you’re missing one, there’s a big hole in your protection.
What Is General Liability Insurance?
General liability insurance protects your business from third-party claims related to:
Bodily injury
Property damage
Personal injury (libel/slander)
Medical payments
This is your classic “slip-and-fall” coverage. It kicks in when someone gets hurt or has their property damaged because of your business operations—not necessarily your professional advice.
🔍 Examples of General Liability Claims
A client visits your office and trips over a rug, suffering a knee injury. They sue for medical bills and lost wages.
You accidentally spill coffee on a client's laptop during a consultation at a coffee shop.
You’re giving a presentation at a facility and knock over an expensive piece of equipment.
In all of these situations, professional advice isn’t the issue—it’s physical harm or property damage. That’s where general liability steps in.
What Is Professional Liability Insurance?
Professional liability insurance (also called errors & omissions or E&O insurance) covers claims arising from the professional services you provide.
This includes:
Misrepresentation
Inaccurate facility recommendations
Failure to disclose material information
Administrative mistakes
Breach of care duty
If a client claims your advice—or failure to advise—led to harm, this is the policy that protects you.
🔍 Examples of Professional Liability Claims
You refer a family to a facility with known safety issues—and they sue after a loved one is harmed.
You forget to pass along a critical medication detail when referring a memory care resident.
You fail to follow up, and the client believes your lack of oversight contributed to a negative outcome.
A client accuses you of steering them into the wrong level of care, resulting in unnecessary costs and emotional distress.
These aren’t physical incidents—they’re about your advice, recommendations, and professional obligations. That’s professional liability territory.
Key Differences at a Glance
Coverage Type | What It Covers | Example Trigger |
General Liability | Bodily injury, property damage, personal injury | A client trips and falls in your office |
Professional Liability | Errors, omissions, misrepresentation, professional negligence | A client sues you over a facility placement gone wrong |
Required? | Sometimes (esp. with an office or staff) | Required by facilities or networks in some cases |
Policy Limits | Usually $1M per occurrence / $2M aggregate | Same as general liability; higher limits available |
Common Exclusion | Doesn’t cover your advice or service | Doesn’t cover bodily injury or property damage |
Why Senior Placement Agents Usually Need Both
Here’s the reality: most claims we see in this industry fall into both buckets. You’re working in physical spaces (tours, meetings, facility visits), but you’re also giving high-stakes advice. If you only carry one type of insurance, you're gambling with half your business unprotected.
Let’s look at a few real-world combinations:
👩⚕️ Combined Risk Example #1: Tour Gone Wrong
You take a family on a facility tour. During the visit:
The client’s parent trips on uneven flooring and breaks a hip.
The family blames you for failing to vet the facility properly.
General Liability could respond to the injury. Professional Liability could respond to the placement advice.
Combined Risk Example #2: Memory Care Misplacement
You refer a family to an assisted living facility that’s not equipped for dementia residents. The resident later wanders off the premises, and the family files a lawsuit.
You didn’t cause the event physically.
But your recommendation is at the heart of the claim.
Only professional liability insurance would respond.
Do All Senior Placement Agents Need General Liability?
Not always—but it depends on how you operate.
You may need general liability insurance if:
Clients come to your home or office
You host events or speaking engagements
You work in co-working or shared office spaces
You meet clients in public areas (e.g., coffee shops, restaurants)
Even if you work fully remote, some senior living facilities require proof of general liability before they’ll allow you to refer clients.
Is Professional Liability Ever Optional?
We’d argue no. Professional liability insurance is mission-critical for every senior placement agent—even if you’re a solo operator or just starting out.
Here’s why:
Your advice has legal weight, even if unpaid
Families often misunderstand or misremember conversations
Disclaimers don’t protect you from being sued
Legal fees for defending a claim can easily exceed $25,000
With policy rates starting around $1,400–$1,800 per year for solo agents, this coverage pays for itself with a single avoided lawsuit.
Multi-agent agencies or franchises may pay more, depending on revenue, state laws, and facility relationships.
What Type of Coverage Do Facilities or Referral Networks Require?
Many senior living facilities—especially national brands or memory care providers—now ask agents for:
Certificates of insurance (COI)
Minimum policy limits of $1M/$2M
Both general and professional liability coverage
Some even require that you list them as an “additional insured” on your policy.
Franchise operators and referral networks often have similar standards. Failing to provide proof of coverage can cost you valuable referrals or partnerships.
Can I Bundle Both Policies?
Yes. Most agents carry a combined liability package, which includes both:
General liability
Professional liability
You can often add:
Cyber liability (HIPAA breach, lost client data)
Non-owned auto (for using personal vehicles in business)
At CarePro Insurance, we help senior placement agents structure policies that meet state laws, partner facility requirements, and referral network guidelines—all in one quote request.
How to Choose the Right Limits
Standard limits are:
$1M per occurrence
$3M aggregate per year
But if you:
Operate in high-risk states (e.g., CA, TX)
Serve high net-worth clients
Have employees or contractors
…you may want to increase those limits to $2M/$4M or even $5M total aggregate to protect yourself from larger claims.
We can help you evaluate whether higher limits are worth the cost based on your risk profile.
What Coverage Doesn’t Include (and How to Fill the Gaps)
Even with both general and professional liability insurance, you may still have uncovered exposures:
Risk Type | Solution |
Employee lawsuits | Employment Practices Liability (EPLI) |
Cyber breaches | Cyber Liability Insurance |
Auto accidents | Non-Owned Auto Liability |
Office fire, theft | Business Property Coverage |
If you’re unsure, we’re happy to review your current setup and recommend a structure that actually matches your day-to-day risk.
Final Thoughts
Understanding the difference between general liability and professional liability insurance is more than a technicality—it’s the foundation of real protection.
Senior placement agents work in a uniquely sensitive space. You're not just coordinating logistics; you’re shaping one of the most important decisions a family will ever make. That comes with serious responsibility—and legal risk.
Having both types of coverage ensures you’re protected whether a client falls during a meeting or sues you over a poor placement outcome.
At CarePro Insurance, we specialize in helping placement agents find the right protection—without overpaying or missing critical gaps.
Or if you're ready to discuss coverage with an advisor:
Disclaimer: This content is for general informational purposes only and does not constitute legal or insurance advice. For tailored recommendations, consult a licensed insurance professional.
