Caring for People Means Managing More Than Care
Operating a residential care facility in Texas is about more than compliance — it’s about stewardship. You manage people’s safety, employees’ livelihoods, and a promise to families that their loved ones are protected. But too often, even well-managed facilities face insurance programs that look complete on paper yet fail when it matters most.
At EIS Texas, we specialize in helping care facility owners, IDD providers, and assisted living operators identify those blind spots before they turn into costly claims.
Here are the five most common coverage gaps we see — and how to close them.
1. Professional Liability vs. General Liability — The “Assumed Coverage” Trap
Most residential care facilities believe their General Liability covers professional exposures. Unfortunately, it doesn’t.
General Liability Insurance only protects against bodily injury or property damage caused by your operations — like a slip-and-fall.
It does not cover errors or omissions in resident care, medication handling, or staff negligence claims.
That’s where Professional Liability (sometimes called Medical Malpractice) comes in. It covers what happens when your team’s judgment, decision, or omission leads to a claim.
Without it: one resident injury claim can exceed $250,000 in legal defense costs alone.
With it: your coverage follows your licensed staff and your corporate entity — closing the most dangerous gap in your operation.
2. Abuse and Molestation Coverage — The “Excluded Exposure” Problem
In the care industry, the most devastating claims are those involving abuse allegations — whether substantiated or not.
Many carriers exclude or sub-limit Abuse and Molestation coverage, leaving facilities dangerously exposed.
You need a standalone or fully endorsed policy that covers:
- Alleged or actual abuse (resident-to-resident or staff-to-resident)
- Legal defense and settlement costs
- Crisis management and reputational protection
EIS Texas helps care operators secure this protection through specialized carriers that understand your environment and licensing structure — not one-size-fits-all commercial markets.
3. Non-Owned Auto Liability — The Overlooked Transportation Exposure
Many care facilities rely on staff to transport residents, pick up prescriptions, or run errands using their own vehicles.
If an accident happens, your facility can be held liable — even if it’s a personal car.
Non-Owned Auto Liability protects your organization when employees drive personal vehicles for company business.
It’s inexpensive, often under $500 annually, and essential if you have multiple homes or community-based care settings.
Without it, one accident can create a seven-figure lawsuit — especially when transporting vulnerable populations.
For broader protection, pair it with a customized Commercial Insurance package that integrates your liability, property, and auto coverages under one cohesive strategy.
4. Workers’ Compensation and Return-to-Work Programs — The Hidden Cost Driver
Texas doesn’t require all employers to carry Workers’ Compensation, but care facilities can’t afford to skip it.
Your staff works in high-contact, physically demanding environments — increasing the risk of back injuries, slips, and strain claims.
Without coverage, medical costs and wage replacement fall directly on your business.
Beyond compliance, a properly structured Workers’ Compensation program helps you:
- Reduce claim costs through early intervention
- Integrate return-to-work programs
- Improve staff retention and morale
At EIS Texas, we partner with carriers who understand healthcare classifications — ensuring you’re rated correctly and not overpaying due to generic job codes.
5. Property and Business Income — The “One Event, Two Losses” Scenario
A fire, storm, or electrical failure doesn’t just damage property — it disrupts your operations.
Many care facilities carry basic property coverage but overlook Business Income and Extra Expense insurance.
This coverage replaces lost income and pays for temporary housing or relocation for residents while you rebuild.
Without it, you’re paying mortgage, payroll, and relocation costs from savings — during your worst business interruption.
In Texas, where weather events are increasing in severity, this protection is no longer optional.
Risk Management Integration ensures you can recover quickly while keeping your residents safe and operations stable.
The EIS Texas Approach: Protecting Purpose, Not Just Property
We understand the balance between care and compliance.
Our process starts with a Risk Gap Audit — a hands-on review of your policies, licensing requirements, and operational exposures. Then, we build a program that covers your actual risk, not just what a carrier template includes.
That means:
- Multi-location coverage for IDD and assisted living operators
- Abuse and Professional Liability alignment
- Emergency relocation expense protection
- Employee and volunteer liability integration
At EIS Texas, we’re more than brokers — we’re partners in protecting what matters most: the people you serve.
Real Example: When “Almost Covered” Isn’t Enough
A Texas IDD provider came to us after a major claim — a resident injury during transport. Their general liability carrier denied it because the staff member was driving a personal vehicle. The result? A six-figure out-of-pocket settlement.
We restructured their program to include:
- Non-Owned Auto Liability
- Abuse and Professional Liability
- Crisis management response coverage
Today, their operations are compliant, protected, and aligned with funding and licensing requirements.
Protecting What Matters Most
Running a care facility is personal. You’re not just protecting a business — you’re protecting people.
Let’s make sure your insurance does the same.
EIS Texas specializes in care facility insurance across Texas — from Rockwall to Dallas–Fort Worth, Tyler, Waco, and Austin.
We help IDD providers, group homes, and assisted living communities secure peace of mind through proactive protection.
At EIS Texas, we believe protecting people and purpose goes far beyond insurance paperwork. It’s about building a partnership rooted in honor, integrity, and service — so you can focus on leading, caring, and growing with confidence.
If your coverage hasn’t been reviewed recently, let’s start a conversation. Together, we’ll make sure your protection grows with your mission.
FAQs
What insurance does a residential care facility need in Texas?
Core coverages include General Liability, Professional Liability, Abuse and Molestation, Property, Workers’ Compensation, and Non-Owned Auto Liability.
How do I know if my current insurance meets Texas licensing requirements?
EIS Texas conducts detailed policy audits comparing your coverage against state and contractual requirements — identifying any compliance gaps.
Does EIS Texas work with multi-location or franchise care providers?
Yes. We specialize in scalable programs for IDD and assisted living organizations with multiple locations or management entities.
Looking for more insurance tips?
- 5 Common Insurance Gaps That Put Texas Residential Care Facilities at Risk
- The Coverage Every Paving Company Overlooks — Until It’s Too Late
- Should You Stay with a National Insurance Broker or Go Independent?
- The Ultimate Texas Pest Control Insurance Playbook: Protecting What Matters Most
- How Much Insurance Do Texas Contractors Really Need?
Texas contractor insurance checklist, commercial contractor insurance Texas, how much insurance do Texas contractors need, contractor insurance coverage Texas, construction business insurance Texas, general liability insurance for contractors Texas, workers compensation insurance Texas contractors, business auto insurance for contractors, builders risk insurance Texas, contractor umbrella policy Texas, group captive insurance Texas contractors, subcontractor insurance compliance checklist, contractor risk management Texas, insurance limits for contractors Texas, construction insurance requirements Texas, contractor liability coverage Texas, contractor insurance guide Texas, best insurance for Texas contractors, Texas trade contractor insurance, mid-size contractor insurance Texas, EMR and workers comp cost reduction Texas, insurance for construction companies Texas, commercial insurance checklist Texas contractors, total cost of risk for contractors, risk management strategies for trade contractors, Texas contractor compliance checklist, insurance for multi-crew trade contractors, contractor coverage limits explained, commercial contractor protection Texas, insurance programs for construction businesses, Eastman Insurance Solutions Texas contractors, protect what matters most Texas contractors