If you operate an assisted living home in Arizona, abuse and molestation coverage is one of the most critical — and misunderstood — parts of your insurance program.
It is also one of the most litigated exposures in the industry.
Many facility owners assume general liability automatically covers abuse allegations. That assumption can be financially devastating.
Abuse & Molestation (A&M) coverage protects your facility against allegations involving:
- Physical abuse
- Emotional abuse
- Sexual misconduct
- Neglect allegations tied to abuse claims
Coverage applies to allegations — not just proven incidents. Defense costs alone can exceed six figures.
Recommended Limits for Arizona Assisted Living Homes
For most facilities, we recommend:
$500,000 minimum Abuse & Molestation sublimit
$1,000,000 per occurrence liability
$3,000,000 aggregate
Facilities contracting with AHCCCS frequently require at least $500K for abuse coverage.
Why Claims Are Expensive
Claims often involve multiple plaintiffs, attorneys specializing in elder care litigation, regulatory scrutiny, and extensive documentation review.
Even unfounded claims require legal defense, investigation, and operational disruption.
Common Coverage Gaps
- No abuse endorsement attached
- $100K sublimits
- Defense costs inside the limit
- Employee background check exclusions
- Third-party coverage exclusions
How Underwriters Evaluate Abuse Exposure
Carriers review:
- Hiring protocols
- Background checks
- Staff training
- Incident reporting systems
- Documentation standards
Strong operational controls improve underwriting position.
Final Thoughts
Abuse & Molestation coverage is a core protection layer in assisted living operations. Properly structured $500K abuse limits paired with $1M/$3M liability create meaningful protection for Arizona facilities.
If you would like your current policy reviewed, contact Prosperity North Advisors to schedule a consultation.