What Does Professional Liability Insurance Cover for Senior Placement Agents?
- Jeff Schmidt
- Aug 6
- 4 min read
What Does Professional Liability Insurance for Senior Placement Agents Cover?
If you run a senior placement business, you've likely heard you need professional liability insurance. But what exactly does it cover—and is it worth the cost?
This guide breaks down everything you need to know about professional liability insurance for senior placement agents, including real-world examples of what’s covered, what’s not, and how to make sure you’re fully protected.
Why Senior Placement Agents Need Professional Liability Coverage
As a senior placement agent, you provide advice, recommendations, and guidance that directly impact a family's most personal decisions. When things go wrong—whether it’s due to a misunderstanding, poor facility experience, or even an accident—you could be held responsible, even if it wasn’t your fault.
That’s where professional liability insurance for senior placement agents comes in.
Also known as errors and omissions (E&O) insurance, this policy protects you against claims that your services caused financial or emotional harm due to:
Misrepresentation
Inaccurate facility details
Negligent recommendations
Omitted information
Failure to follow regulations or referral guidelines
Even if a claim is baseless, you’ll still need to defend yourself. Legal fees alone can easily exceed $25,000 without proper coverage.
What’s Covered Under Professional Liability Insurance?
Let’s break it down. Here are some common scenarios where professional liability insurance for senior placement agents would step in to help:
Misrepresentation of a Facility
You refer a family to a memory care facility that later turns out to have a poor record of patient safety—something you were unaware of. The family sues, claiming you failed to disclose the risk.
Covered: Your policy pays legal defense costs and any covered damages, even if you didn’t knowingly misrepresent the facility.
Incomplete or Incorrect Paperwork
You mistakenly submit intake forms with incorrect medication details, leading to a care error at the facility. The family claims you were negligent in transmitting important health information.
Covered: Errors in documentation or communication related to your placement services are typically covered.
Failure to Follow Up
After referring a client, your agency does not check back to ensure the facility was a safe match. The family experiences issues and files a claim that your lack of oversight contributed to the harm.
Covered: Claims of negligence or failure to act within a professional standard of care fall squarely under this type of coverage.
Accusations Without Proof
You’re sued for emotional distress after a family claims you “pressured them” into a decision. There’s no evidence, but you're still required to defend yourself.
Covered: Defense costs are included—even if the claim is frivolous or dismissed.
What’s Not Covered?
While professional liability insurance for senior placement agents covers a wide range of risks, there are exclusions you should be aware of:
Intentional wrongdoing or fraud
Bodily injury or property damage (covered under general liability insurance instead)
Vehicle-related incidents (requires non-owned auto coverage)
Employment-related claims (usually covered under EPLI policies)
Cyber liability (separate cyber insurance is required for data breaches or HIPAA violations)
Pro tip: You can bundle general liability, E&O, and hired non-owned auto into one policy package through CarePro Insurance to avoid gaps.
Does Your State Require Professional Liability Insurance?
Some states now mandate certain levels of insurance for senior placement agencies:
Texas: Requires $1M per claim
Washington: Strongly encourages it under vulnerable adult protection rules
Other states: No mandate yet, but facilities and referral networks often require proof of coverage
Regardless of state law, having professional liability insurance for senior placement agents is now considered a baseline business standard.
👉 Check your state’s requirements here.
What Limits Should You Carry?
Most agents carry:
$1 million per occurrence
$3 million aggregate per year
Larger agencies, or those working with high-end facilities or complex client needs, often opt for higher limits. CarePro Insurance can customize limits based on your exposure and state requirements.
How Much Does It Cost?
Rates for professional liability insurance for senior placement agents vary by:
State
Claims history
Number of agents/employees
Annual revenue
Typical premiums range from $1,400 to $1,800 per year for solo agents. Multi-agent firms may pay more but benefit from group pricing. Even a large group of 7-10 agents usually doesn't pay more than $3,000 per year.
Note: These are sample estimates. Every policy is underwritten based on your unique risk profile.
How to Get Coverage Quickly
At CarePro Insurance, we’ve streamlined the quoting process so you can apply in minutes.
You’ll get:
✅ Tailored coverage for senior placement
✅ Affordable premiums
✅ Access to expert insurance advisors who understand your business
Final Thoughts
You don’t need to be negligent to get sued—you just need to be in the wrong place at the wrong time.
That’s why professional liability insurance for senior placement agents isn’t just smart—it’s essential.
By protecting your agency with the right policy, you can focus on what matters: helping families make confident, compassionate choices.
Disclaimer: This article is for informational purposes only and does not constitute legal or insurance advice. Please consult a licensed insurance advisor to determine the right coverage for your specific situation.
