The Baldwin Insurance Group Inc.
10/28/2026 | Press release | Distributed by Public on 10/28/2026 15:38
Senior living liability: what rising claim costs mean for operators
Rising claim costs are reshaping liability coverage for senior living communities, and a recent Business Insurance article explores what that means for operators, from primary pricing to excess limits.
Senior living communities support residents with complex needs, and the claims that follow incidents, such as falls, pressure injuries, and elopement, are costing more to resolve. Average indemnity payments on senior care claims rose from $179,000 in 2019 to $253,000 in 2024, according to MedPro Group. Large jury verdicts add to the pressure.
Alex Whipple, Senior Vice President, Senior Living Practice at CAC, part of The Baldwin Group, shared how operators are experiencing the market in a recent conversation with Business Insurance. Primary liability pricing remains competitive for operators with strong loss experience in favorable jurisdictions, with rates flat to up single digits. Location makes a difference, though. In California, insurers may require higher retentions even when an operator has a strong loss record. An operator with a $100,000 retention, for example, could see it rise to $250,000. Los Angeles and Sacramento counties remain among the toughest venues, and Cook County, Florida, and Georgia also present challenges.
The article points to a few practical themes for operators:
- Review how your excess tower is built. Individual excess limits have shrunk, so larger programs often need more insurers. Some middle-market operators in California are forgoing excess coverage because of cost, while larger operators continue to buy it. Ask your advisory team whether excess policies follow the abuse sublimits in your primary policy, so coverage reaches the limits you expect.
- Invest in hands-on training and documentation. Staffing, adherence to protocols, and communication appeared often in larger paid claims. Complete records and in-person training help operators tell their story when a claim occurs.
- Plan how you use technology. Fall-detection cameras, radar-based monitoring, and electronic medication records can support resident safety and strengthen documentation. They work best when teams are trained to respond to every alert, because the same records show how staff acted.
- Explore alternative risk financing. Interest in captives and risk retention groups is growing as operators look for more control over how they fund retained losses.
Operators who pair strong care practices with clear records and early conversations with their advisory team are well positioned to navigate a changing market.
Read more: Senior care liability claims grow costlier (Business Insurance)
The Baldwin Insurance Group Inc. published this content on October 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 28, 2026 at 21:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]