It protects your business assets that might include building, equipment and inventory against fire, theft, vandalism & certain weather events.
It provides third party coverage and pays for medical costs in treating bodily injury as well as for property damage. It also covers court costs and legal expenses when claims are initiated against you by residents or their family members.
Replaces lost income when your business operations are interrupted due to unexpected accidents such as a fire or an unforeseen occurrence such as natural disasters.
What is Adult Care Facilities Property Liability?
Adult care facilities property liability combines property coverage and third-party liability to protect buildings, contents, and legal expenses when residents or visitors are injured or property is damaged. The policy can be tailored to include equipment coverage, business income, and certain crime protections to address theft or employee dishonesty.
Who needs it
Operators of assisted living, residential care homes, adult day programs, and small nursing centers typically purchase this coverage. Facilities often buy it alongside professional liability — for example, see the related Adult Care Facilities Professional Liability Insurance — to cover both operational mistakes and facility exposures.
What it typically covers
Typical features include building and contents protection, replacement of equipment, business income (loss of earnings), and general liability for bodily injury or property damage. Many programs also offer optional endorsements for crime coverage, which can help with employee theft or fraud; see an example of complementary protection at Adult Care Facilities Crime Insurance. For facilities that more closely resemble long-term care, there are policy forms related to Nursing Home Facilities Property Liability.
Common exclusions or limitations
Policies commonly exclude professional medical malpractice (handled by professional liability), intentional acts, wear-and-tear, and some environmental hazards. Underwriting factors can add further restrictions — for example, high-risk equipment or a history of repeated claims may limit available coverage.
Factors that influence cost
Premiums reflect building age and construction, location (weather exposure, crime rates), number of residents, staffing levels, prior claims, and selected limits and deductibles. Operational hazards, such as frequent resident transfers or specialized medical equipment, can increase rates. Risk management measures — staff training, safety programs, and regular maintenance — often reduce costs.
Proof of insurance & compliance
Facilities commonly provide certificates of insurance to regulators, landlords, or contracting partners. Certificates show limits and policy dates but don’t change the policy terms. Requirements vary by state and by contracting party, so maintain documentation that matches the contractual or licensing needs of your operation.
How to get a quote
To obtain a tailored quote, gather basic information about your facility: square footage, construction type, resident count, loss history, and any security or safety programs in place. You can quickly request coverage details and pricing online— Get a quote—or speak with a broker who understands both property coverage and commercial liability exposures.
Frequently Asked Questions
Does this coverage include professional medical errors?
No. Professional medical errors are generally covered under professional or medical liability policies, not property liability.
Will the policy pay for lost income after a fire?
Yes — if you have business income (interruption) coverage included, the policy can replace lost revenue during a covered shutdown subject to the policy’s waiting period and limits.
Can crime or employee theft be added?
Often yes. Crime or employee dishonesty endorsements are commonly available as add-ons to protect assets from theft or fraud.
Still have questions? Talk to a local insurance expert.