Staffing Shortages Put Assisted Living Insurance Coverage at Risk

Naples, Florida - September 9, 2025 - Assisted living facilities already struggling with high turnover and unfilled positions now face another challenge: the possibility of steep insurance premium hikes-or even non-renewal of coverage.

Industry surveys highlight the scope of the problem. A 2023 LeadingAge poll found that 70% of assisted living providers reported significant or severe workforce shortages, with 64% saying conditions had not improved in the past year. In some cases, 20% of staff positions remain unfilled with no applicants.

The impact is showing up in the insurance market. According to the National Investment Center's Executive Survey, more than half of senior living operators saw liability premiums increase last year, with hikes reaching 30% to 50% in facilities experiencing staffing instability. In some cases, insurers declined to renew coverage altogether.

"Underwriters are treating staffing shortages as a leading indicator of risk," said Ralph Schiller, Senior Broker at Homewood Insurance in Naples. "Even facilities with clean records can be penalized if turnover is high or staffing is thin, especially on overnight shifts."

Analysts warn that non-renewals may become more common as insurers pull back from high-liability states or demand stronger staffing documentation. Facilities unable to demonstrate a plan for stabilizing their workforce could find themselves with limited or costly options for coverage.

Homewood Insurance, which specializes in liability coverage for healthcare and senior living organizations, advises operators to treat workforce strategy as part of their risk management. "Insurance is about more than claims history," Schiller said. "Insurers want to see that you have controls in place to prevent problems before they happen, and staffing is at the top of that list."

Full details are available at: https://homewood.insure/assisted-living-facilities/

Ralph Schiller, Senior Broker
Homewood Insurance Group
4850 Tamiami Trail N, 3rd Floor
Naples, FL 34103
Phone: +1-947-274-3093
https://homewood.insure

Homewood Insurance Group is a specialty insurance agency based in Naples, Florida, focused on serving clients in the healthcare and senior living sectors. With access to nearly 100 carriers and deep expertise in medical malpractice, general liability, sexual abuse and molestation (SAM), and cyber liability, Homewood helps clients secure tailored coverage solutions for complex risks. The firm is committed to empowering its clients with the knowledge, tools, and carrier relationships needed to protect their business.

This release was published on openPR.