What Insurance Do Seniors Residences Need?

April 14, 2025

If you are the owner of a seniors retirement home or seniors residence, you will need business insurance that protects you and your residents, staff, volunteers, visitors, and your property.

Business liability insurance is a key part of the commercial insurance coverage that you need to financially protect your senior care facility against lawsuits.

Get a Business Insurance Quote

What seniors’ facilities need customized business insurance?

• Nursing homes
• Seniors residences
• Retirement homes
• Hospices
• Long-term care facilities
• Senior living homes
• Autonomous and semi-autonomous senior living homes
• Assisted-living facilities

Business liability insurance is the pillar of your commercial insurance for your seniors residence

Your business liability insurance should minimize any negative financial consequences as a result of lawsuits.

Potential risks that your seniors residence could face include third-party injury and property damage, negligence, errors and omissions in your work, food poisoning, cyberattacks, sexual abuse.

Here are the liability coverages you need to protect your seniors residence from lawsuits:

Professional liability insurance

Professional liability insurance is also called errors and omissions insurance.

E & O insurance protects your seniors facility and its staff from lawsuits over the quality of care they provide. This type of insurance protects you against claims of medical errors, negligence, and failure to provide promised care.

If your senior residence is found liable, professional liability insurance will help pay for legal defense and any damages up to your policy’s limit.

Directors and Officers liability insurance

Does your retirement home/senior residence have a board of directors? Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer against legal claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.

It also covers:

• Negligent acts and allegations of misrepresentation
• Breach of legal or fiduciary duties
• Decisions that result in adverse financial consequences for shareholders
• Wrongful dismissal and employee discrimination claims
• Failure to adhere to federal and provincial laws and regulations

Commercial general liability (CGL) insurance

CGL insurance is a pillar of your business liability insurance. It protects you against claims of bodily injury or property damage occurring on your retirement home premises or as a result of operations. CGL covers incidents such as slips and falls and food poisoning.

Without commercial general liability insurance, you will be responsible for paying all the costs related to third-party injuries or damage to their property.

If you were sued as the owner of a seniors residence, CGL insurance would help cover the legal costs to defend the claim against your seniors home in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.

Commercial umbrella insurance

You may want to consider commercial umbrella insurance for your seniors residence because it addresses gaps in your business liability coverage. It’s used when the primary liability coverage, for example on your commercial general liability insurance or your errors and omissions insurance, has reached its coverage limit.

Umbrella insurance applies only to expenses related to liability issues, such as legal fees, court fees, and legal settlements.

Cyber liability insurance

Cyber liability insurance will help protect your retirement home business financially should there be a cyber-attack. Did you know that depending on the size of the data breach and what information was taken, affected residents can hold you liable and sue you for damages?

Abuse liability insurance

Your retirement residence could face allegations of physical, sexual, and emotional abuse. Abuse liability insurance helps you defend your seniors residence against these allegations.

What other insurance coverages are recommended for seniors residences?

Commercial property insurance

Commercial property insurance provides financial support to replace or cover repairs to your seniors home if it is damaged by a flood, fire, or severe weather. It covers vandalism and theft, too. It also covers contents such as computers, furniture, tools, equipment, and inventory.

Business interruption insurance

This type of insurance supports your senior living facility when it can’t operate due to a covered loss.

Examples of losses that can force your seniors residence to shut down:

• Damage to your equipment from fire or vandalism
• A major reduction in revenue due to a client/supplier facing losses of their own
• A disruption in your supply chain

Business interruption insurance can help with these expenses:

• Payroll
• Rent
• Utilities
• Property taxes
• Alarm monitoring
• Relocation of your business

Commercial auto insurance

If you are using your car for your job in the senior living industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.