Senior Placement Franchise Insurance: What Every Franchisee Needs to Know
- Jeff Schmidt
- Dec 22, 2025
- 3 min read
If you’re a franchisee in the senior care referral space, you’re probably already aware that your insurance needs are a bit more complex than those of an independent agent.
Whether you're affiliated with Assisted Living Locators, CarePatrol, Senior Care Authority, or Oasis Senior Advisors, there are specific insurance coverages you’re likely required to carry—and skipping any one of them could put your franchise agreement at risk.
This guide walks you through everything you should know about senior placement franchise insurance, including typical coverage types, required limits, and what makes your policy different from non-franchise operations.
What Makes Franchisee Insurance Different?
Franchisees usually operate under a nationally recognized brand with centralized legal and compliance standards. That means:
Your insurance coverage must align with the franchise’s contractual requirements
You may be required to list the franchisor as an additional insured
You’ll likely need additional endorsements like Cyber Liability and Hired/Non-Owned Auto that aren’t always required for independents
These differences affect both how your policy is structured and how much it costs.
Required Coverages for Senior Placement Franchise Insurance
Most franchise agreements require the following core policies:
1. Professional Liability Insurance (E&O)
This may help protect you against claims that your recommendations, referrals, or professional services caused harm to a client or their family. It’s critical for agents making care-level assessments and placement decisions.
2. General Liability Insurance
May cover bodily injury or property damage during client meetings or facility tours. Required by nearly all franchisors and many senior living communities.
3. Cyber Liability Insurance
If you handle intake forms, health records, or communicate sensitive client data online (and
you almost certainly do), cyber liability coverage may be required. It may help cover data breaches, HIPAA violations, or ransomware incidents.
4. Hired/Non-Owned Auto Liability
This protects you when using your personal vehicle for business—like when driving to facility tours or family consultations. Many franchise systems mandate this coverage even if you don’t operate a company vehicle.
Typical Policy Limits for Franchisees
While requirements can vary slightly by brand, most franchisees are required to carry at least:
$1,000,000 per occurrence
$3,000,000 aggregate annually
These limits are considered the industry standard and are usually high enough to meet both franchise and facility contract expectations.
Higher limits may be needed if you're operating in a high-risk state or if the franchisor specifies additional umbrella coverage.
Why Most Franchise Policies Cost $2,000–$2,500 Annually
Cost Driver | Explanation |
Cyber Liability | Required for handling client data securely |
Hired/Non-Owned Auto | Protects your personal vehicle during work-related trips |
Additional Insured Setup | COIs must include your franchisor and sometimes facility partners |
Higher Risk Tolerance | National brands prefer higher limits and broader coverage |
When you factor in all these components, most franchisees fall into the $2,000–$2,500/year range.
Common Mistakes Franchisees Should Avoid
Franchisees sometimes assume a general business insurance policy is sufficient—but these may fall short of what your franchisor actually requires.
Mistake #1: Skipping Hired/Non-Owned Auto
Even if you’re not running a fleet, using your personal car for business may create liability exposures that personal auto insurance won’t cover.
Mistake #2: Not Including Cyber
Most franchises require cyber liability—even if it's not stated clearly in your FDD (Franchise Disclosure Document). It's also increasingly required by facilities due to HIPAA concerns.
Mistake #3: Using a Generalist Insurance Broker
Franchise requirements are nuanced. Generic small business coverage may leave you non-compliant.
What’s Typically Required for Proof?
Franchisors and facilities often request a Certificate of Insurance (COI) that includes:
Your name and business entity
Your franchise name as an additional insured
Policy number and carrier
Coverage start and expiration dates
Coverage types and limits
We issue COIs quickly and can help you update them whenever needed.
Franchise Coverage Tailored to Your Needs
At CarePro, we’ve helped franchisees across the country meet the specific insurance requirements of:
Assisted Living Locators
CarePatrol
Senior Care Authority
Oasis Senior Advisors
Placement Helpers
We know what your franchisor is looking for—and we structure policies that align with both your operational risk and your legal obligations.
Whether you’re brand new to the business or managing multiple territories, we can help ensure your insurance is franchise-compliant, facility-ready, and correctly structured from day one.
Final Thoughts
Franchise insurance isn’t just a legal formality—it’s a compliance tool, a liability shield, and often a requirement for keeping your business in good standing.
By carrying the right senior placement franchise insurance, you:
Help protect yourself from lawsuits
Satisfy franchisor and facility contracts
Gain peace of mind knowing your business is built on a solid foundation
Disclaimer: This blog is for informational purposes only and does not constitute legal or insurance advice. Insurance requirements vary by franchisor, carrier, and state. Please consult a licensed insurance advisor for specific policy guidance.
