Senior Placement Insurance FAQs: Answers to Agents’ Top 10 Questions
- Jeff Schmidt
- Oct 12
- 4 min read
If you're a senior placement agent—or thinking about becoming one—you’ve probably asked a few questions about insurance.
Do I really need it? What does it cover? How much does it cost?
You're not alone.
Whether you're with a franchise like Assisted Living Locators, CarePatrol, Senior Care Authority, or Oasis Senior Advisors, or running your own independent agency, the answers below can help you protect your business, satisfy your contractual obligations, and avoid costly mistakes.
1. Do I Really Need Insurance to Be a Senior Placement Agent?
Yes. Even if it's not required by law in your state, having both professional and general liability insurance is essential.
Your work involves guiding families through high-stakes care decisions. That creates legal and financial exposure—especially if something goes wrong during a referral.
Even a baseless accusation can lead to a lawsuit that costs tens of thousands of dollars to defend.
2. What Kind of Insurance Do I Need?
At minimum, most agents should carry:
Professional Liability Insurance (E&O): May help protect you from claims that your advice or placement recommendations caused harm.
General Liability Insurance: May help protect you from bodily injury or property damage claims—such as during a facility tour or in-person meeting.
These are the two core policies. From there, additional coverage can be added depending on your business model.
3. How Much Coverage Should I Carry?
A common starting point for senior placement agents is:
$1,000,000 per occurrence
$3,000,000 aggregate per year
These limits are typically accepted by most franchise systems, senior living facilities, and referral networks.
4. Is Insurance Required by My Franchise?
If you’re affiliated with a national brand like:
Assisted Living Locators
CarePatrol
Senior Care Authority
Oasis Senior Advisors
...then yes, your franchise agreement likely requires you to carry liability insurance—and to show proof of coverage annually.
These franchises typically require:
Both general and professional liability
$1M/$3M or higher policy limits
Certificates of insurance (COIs) naming the franchisor as an additional insured
If you’re unsure whether your policy meets your franchise’s standards, request a review from our team.
5. What Does Professional Liability Insurance Actually Cover?
Professional liability (also called E&O insurance) may help protect you from claims like:
Misplacement or incorrect level-of-care recommendations
Failure to disclose a facility’s history or limitations
Emotional distress caused by referral outcomes
Miscommunication or documentation errors
Even if the claim isn’t valid, your policy may help cover legal defense costs—sometimes in the tens of thousands of dollars.
6. What’s Not Covered?
Typical exclusions may include:
Intentional misconduct or fraud
Car accidents while on business errands (requires non-owned auto liability)
Employment-related lawsuits (requires EPLI)
Data breaches (requires cyber liability)
Property theft or fire (requires business personal property coverage)
We can help you bundle the policies that align with your risk exposure.
7. What If I Work From Home and Only Do Virtual Referrals?
You still need coverage.
Even if you never step into a facility or host in-person meetings, you're still providing professional advice that could be challenged.
Plus, many facilities or referral partners still require proof of insurance—regardless of your setup.
Working from home may reduce some physical liability risks, but it doesn’t eliminate professional exposure.
8. How Much Does Senior Placement Agent Insurance Cost?
For most solo agents:
$1,400–$1,800 per year for core professional and general liability
Your rate depends on factors like:
State of operation
Number of agents
Coverage limits
Add-ons like cyber or auto
Claims history
Larger agencies or franchises may pay more, but often benefit from scalable options.
9. Do Facilities Require Proof of Insurance?
Yes—many do.
In fact, some assisted living and memory care providers won’t allow you to refer residents without a current Certificate of Insurance (COI).
Others may require:
That you list them as an additional insured
Specific minimum policy limits (e.g., $1M/$3M)
Both general and professional liability coverage
This is common in both franchise and independent referral settings.
If you’re not sure whether your policy will satisfy facility contracts, we can help you adjust it.
10. How Do I Know If I Have the Right Coverage?
Here’s a quick checklist:
✅ Do you have both general and professional liability?
✅ Are your limits at least $1M/$3M?
✅ Do you have cyber or auto coverage if needed?
✅ Are you able to provide COIs on demand?
✅ Does your policy reflect your current business structure (solo, team, franchise)?
If you’re unsure about any of the above, don’t guess.
Wrap-up
Insurance questions don’t have to be confusing. If you’re a senior placement agent—whether you’re part of Assisted Living Locators, CarePatrol, Senior Care Authority, Oasis Senior Advisors, or running your own business—having the right coverage in place is critical.
From defending yourself in a legal dispute to satisfying contract requirements, the right policy may protect your income, your credibility, and your future.
Disclaimer: This blog is for informational purposes only and does not constitute legal or insurance advice. Coverage terms and availability may vary. Please consult a licensed insurance advisor to review your specific needs.
