Senior Placement Agent Insurance: Everything You Need to Know Before You Buy
- Jeff Schmidt
- May 18
- 5 min read
If you’re a senior placement agent, you already know the stakes are high. Families trust you to help navigate emotional and financial decisions about where their loved ones should live—and when something goes wrong, you’re often the first one blamed.
That’s why having the right senior placement agent insurance isn’t just smart—it’s essential.
Whether you’re a solo operator or run a growing referral agency, this guide will break down everything you need to know before you buy coverage, including what it protects, what it costs, and how to avoid common pitfalls.
What Is Senior Placement Agent Insurance?
Senior placement agent insurance is a customized liability insurance policy designed specifically for professionals who help families find and evaluate senior living options, such as:
Assisted living
Memory care
Independent living
Skilled nursing
Residential care homes
It typically includes:
Professional liability insurance (E&O) – Covers claims that your advice, recommendation, or service caused harm
General liability insurance – Covers injuries or property damage that happen during business interactions
Optional coverages like cyber liability, non-owned auto, or workers’ comp (if you have a team)
Without this type of insurance, you’re personally and professionally exposed to lawsuits—even if you’ve done nothing wrong.
Who Needs Senior Placement Insurance?
You need coverage if you:
Recommend facilities or providers to families
Provide written or verbal evaluations
Are paid for elder care referrals
Employ staff or contractors
Tour facilities or meet with families in person
Even if you work from home or operate virtually, you’re still liable for the advice you give. And most facilities or referral networks will require you to carry coverage to work with them.
What Does It Cover?
Let’s take a closer look at the two most important parts of a senior placement agent insurance policy.
1. Professional Liability Insurance (Errors & Omissions)
This protects you against claims that you made a mistake, left something out, or gave bad advice.
Examples of covered claims:
You recommend a memory care facility that turns out to be a poor fit, and the family sues
A client accuses you of misrepresenting pricing, services, or staffing at a facility
You forget to mention a facility's recent violation or staffing issue
A family claims they were pressured into a placement that later caused emotional distress
Even if these claims are unfounded, you still have to defend yourself—and legal costs can be steep.
2. General Liability Insurance
This protects you from third-party bodily injury or property damage claims.
Examples:
A client trips and falls in your office or at a public meeting
You spill coffee on a client's phone or laptop during a consultation
A vendor visiting your agency slips on a wet floor and is injured
If your business involves in-person interactions, this protection is key.
What Isn’t Covered?
Even a great policy has exclusions. Here’s what senior placement agent insurance usually doesn’t cover (unless added separately):
Not Covered | Coverage Needed |
Cyber liability / data breach | Cyber liability insurance |
Car accidents during work | Non-owned auto liability |
Employee lawsuits | Employment practices liability (EPLI) |
Office damage, theft, fire | Business property insurance |
CarePro can help you build a custom policy with only the coverages you need—no more, no less.
Do Any States Require Insurance for Senior Placement Agents?
Yes—and more are following suit. Here’s where things stand now:
Texas
Texas law requires referral agencies to carry at least:
$1 million per occurrence
You must also complete training, conduct biannual audits of facilities, and meet specific compliance standards.
Learn more about Texas regulations here.
Washington
Washington has laws in place around privacy, standard intake forms, and background checks for elder referral agencies. Insurance isn’t explicitly mandated, but liability protection is strongly encouraged.
Other States
Most other states do not yet require liability insurance by law. But in practice:
Facilities often require proof of coverage
Networks like A Place for Mom require COIs
Families are becoming more litigious—and more aware of their rights
Even if you’re not required to carry coverage, you’re taking a risk by operating without it.
How Much Does Senior Placement Agent Insurance Cost?
Coverage typically costs:
$1,400–$1,800/year for a solo agent
Higher for multi-agent agencies or those operating in high-risk states (like CA or TX)
Your price depends on:
Where you operate
How many people are on your team
Your coverage limits
Claims history
Revenue volume
Because policies are individually underwritten, we recommend speaking with a specialist familiar with senior care referrals.
What Limits Should I Choose?
Standard industry limits are:
$1 million per occurrence
$3 million aggregate annually
If you're working with multiple facilities, running events, or operating in a state like Texas, you may need higher limits like:
$2M/$4M
$5M aggregate
We’ll help you assess what’s required and what’s simply wise based on your exposure.
Can I Add Team Members to My Policy?
Yes. If you have employees or independent contractors, you can add them to your policy as named insureds. Keep in mind:
You’ll likely need general liability and workers’ comp
Coverage costs more, but often scales affordably
Some underwriters require staff training or background checks for multi-agent operations
A tailored agency policy ensures your whole team is protected without gaps.
Do I Need Insurance If I Work From Home?
Yes. Even home-based agents are exposed to:
Lawsuits over advice or referrals
Client disputes over communication breakdowns
Facility requirements for coverage (even virtual referrals)
Important: Your homeowners policy almost certainly excludes business liability claims.
Whether you're in a home office or running tours around town, the risk comes from your professional role—not just your location.
How to Choose the Right Insurance Partner
Not all insurance agencies understand the unique liability risks of senior placement work. When choosing a provider, look for:
✅ Experience insuring elder care businesses
✅ Access to professional liability & GL under the same policy
✅ Ability to scale coverage for solo agents or multi-agent firms
✅ Willingness to provide customized COIs
✅ Understanding of HIPAA-related exposure
CarePro Insurance specializes in healthcare liability—and we work with hundreds of placement professionals across the country.
Ready to Get Covered?
Your business helps families navigate one of the hardest decisions they’ll ever face. Let us help you protect what you’ve built.
We’ll walk you through the process and get you the right protection—without overpaying or leaving gaps.
Final Thoughts
Whether you’re a solo placement agent or running a growing agency, having the right insurance is non-negotiable. Senior care is complex. Families are emotional. Laws are changing.
Senior placement agent insurance gives you peace of mind, business credibility, and legal protection in one affordable policy.
Don’t wait for a claim to happen. Get the coverage you need today—and stay focused on what you do best: helping families find the right place to call home.
Disclaimer: This content is for informational purposes only and does not constitute legal or insurance advice. Always speak to a licensed advisor to confirm your specific needs and requirements.
