INSURANCE GUIDE Care Home Insurance UK - what residential and nursing homes need |
TL;DR
- Care home insurance is a specialist combined commercial insurance product for residential care homes, nursing homes, and supported living facilities.
- Care Quality Commission (CQC) registration requires care homes to hold appropriate insurance, including minimum levels of employers liability and public liability.
- Professional indemnity is a critical cover for nursing and care homes - covering claims from residents or families for negligent care or treatment.
- Medical malpractice (clinical negligence) cover may be required in addition to standard professional indemnity for nursing homes with clinical staff.
- Annual premiums for a small to medium residential care home (20-50 beds) typically range from GBP 5,000 to GBP 20,000 depending on resident profile and claims history.
Last reviewed: June 2026
KEY FACTS | |
| What it covers | Buildings, contents and equipment, public liability, employers liability, professional indemnity, and business interruption |
| CQC requirement | Care Quality Commission registration requires appropriate insurance - including EL and PL as a condition of registration |
| Professional indemnity | Covers claims from residents or families for alleged negligent care - a critical cover for any care facility |
| Clinical negligence | Required in addition to standard PI for nursing homes and any facility with clinical staff providing healthcare |
| Regulatory exposure | CQC enforcement action, safeguarding investigations, and inquests are significant regulatory risks for care homes |
| Annual premium range | GBP 5,000 to GBP 20,000 for a small to medium care home; larger facilities or specialist nursing homes significantly more |
What Is Care Home Insurance?
Care home insurance is a specialist commercial combined insurance package for residential care homes, nursing homes, dementia care facilities, learning disability homes, and supported living services. The sector has a unique risk profile: significant property assets (the care home building and specialist equipment); complex liability exposure (the duty of care to vulnerable residents combined with the professional care provided to them); a large workforce (high employer liability exposure); and significant regulatory exposure (CQC oversight, safeguarding, and clinical governance requirements).
The Care Quality Commission (CQC) registers and regulates adult social care providers in England. CQC registration conditions include requirements to hold appropriate insurance, and CQC inspectors may ask to see evidence of insurance as part of the inspection process.
KEY FACTS
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Key Covers for Care Homes
Employers liability: With typically 30-100+ staff, EL exposure is substantial. Care workers have high injury rates due to manual handling, and occupational stress claims are significant in the sector. Minimum GBP 10 million EL cover is standard.
Public liability: Covers claims from residents, their families, and visitors for injury or property damage. A resident fall, a visitor slip, or damage to a resident vehicle are typical PL claims. A minimum of GBP 5 million to GBP 10 million PL is typically required.
Professional indemnity: Covers claims from residents or their families for alleged negligent care - medication errors, falls due to inadequate risk assessment, pressure sores, and other care-related incidents. Professional indemnity is essential for any care home.
Clinical negligence: For nursing homes and facilities with registered nurses providing healthcare, clinical negligence cover (sometimes called medical malpractice) may be required in addition to standard professional indemnity. This covers healthcare-specific liability including clinical treatment decisions.
Buildings and business interruption: The care home building and business interruption following fire or flood are significant risks - particularly as care homes cannot simply close while repairs are undertaken without alternative accommodation being found for residents.
Related Guides |
Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Does CQC require care homes to hold insurance?
CQC registration conditions require care homes to hold appropriate insurance as a condition of registration. Specifically, EL insurance is legally compulsory for any care home with employees, and CQC registration conditions reinforce this. PL insurance and appropriate professional indemnity are expected by CQC as part of the governance framework for a well-led, safe care service.
What is the difference between professional indemnity and clinical negligence for care homes?
Professional indemnity covers claims for negligent care and service delivery - failure to follow care plans, inadequate risk assessments, safeguarding failures. Clinical negligence (medical malpractice) covers healthcare-specific clinical decision-making - treatment decisions made by registered nurses or allied health professionals, medication errors, and similar clinical risks. Residential care homes without clinical staff typically need PI; nursing homes with clinical staff should consider both.
Does care home insurance cover regulatory investigations?
Standard professional indemnity policies typically cover the legal costs of responding to CQC enforcement action, safeguarding investigations, and coroner inquests where these arise from the professional services provided by the care home. The specific scope of regulatory cover varies by policy and should be checked carefully. CQC enforcement action can include warning notices, conditions on registration, and urgent cancellation of registration - all of which have significant financial consequences.
What is the impact of a poor CQC rating on care home insurance?
A poor CQC rating (Requires Improvement or Inadequate) increases the risk profile of a care home for insurance purposes. Insurers may increase premiums, add conditions, or decline to renew cover if a care home has persistent regulatory concerns. Maintaining CQC compliance and a Good or Outstanding rating supports access to the insurance market at competitive premiums.
Can a new care home get insurance before CQC registration is granted?
Yes. Insurance can typically be arranged before CQC registration is granted, covering the pre-opening period including building works and initial setup. The insurer will be aware that CQC registration is pending. Once registration is granted and residents begin to be admitted, the care-specific elements of the policy (PL, EL, professional indemnity) become active. Arranging insurance early is important as evidence of intended insurance may be required as part of the CQC registration application.
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