If you operate a care facility in California — assisted living, group home, substance abuse treatment, adult day care — there is one coverage gap that keeps experienced insurance professionals up at night. Standard general liability explicitly excludes abuse and molestation claims. And for care facilities, this is your highest-risk exposure.
Why standard GL excludes abuse and molestation
Every standard commercial general liability policy contains an abuse and molestation exclusion. This exclusion eliminates coverage for:
- Physical abuse by staff or residents
- Sexual abuse or molestation by staff or residents
- Emotional or psychological abuse
- Neglect that rises to the level of abuse
Insurance companies exclude this because the claims are severe, the litigation is expensive, and the settlements are large. Without a separate abuse and molestation policy or endorsement, you have zero insurance protection against these claims.
⚠️ The most common and most expensive misconception in care facility insurance: "My GL covers everything that happens at my facility." It doesn't. Abuse and molestation claims are the most common and most expensive claims in the care facility sector — and they're explicitly excluded from your GL policy.
Who needs abuse and molestation coverage
Any California facility that provides care, supervision, or services to vulnerable populations:
- Assisted living facilities (RCFEs)
- Residential care homes
- Substance abuse and detox facilities
- Sober living homes
- Group homes for adults with disabilities
- Adult day care programs
- Mental health treatment facilities
- Youth programs and after-school care
What abuse and molestation coverage covers
A proper abuse and molestation policy provides:
- Legal defense costs — attorney fees, court costs, expert witnesses. These alone can run $100,000–$500,000 before a case is resolved.
- Settlements and judgments — if a claim is found valid or settled, the policy pays the settlement amount up to the policy limits
- Staff misconduct claims — covers claims arising from actions of employed staff
- Resident-to-resident incidents — some policies cover claims arising from one resident harming another
What abuse and molestation coverage costs for California care facilities
Pricing depends on your facility type, number of residents, staff count, and coverage limits:
- Small group home (6–15 residents): $500–$2,000/year for $1M in coverage
- Assisted living facility (15–50 residents): $1,500–$4,000/year
- Substance abuse treatment facility: $2,000–$6,000/year (higher risk profile)
- Large residential care facility (50+ residents): $4,000–$10,000+/year
A&M coverage is often packaged with professional liability and GL in a care facility package policy, which can reduce the overall cost versus buying separately.
How to get abuse and molestation coverage for your California facility
Standard insurance carriers don't offer this coverage — you need an agent who specializes in care facility insurance and has access to specialty markets. At Blackstone, we work with carriers who specifically write for assisted living, substance abuse, and group home facilities in California. A policy review takes 20 minutes and is completely free.
Free care facility policy review — 20 minutes
We'll identify your coverage gaps and find the right A&M coverage for your facility.