Senior Living Insurance Glossary

Key terms and definitions for senior living and long-term care liability insurance, explained by CareFront Insurance underwriting experts.

Professional Liability (E&O)

Insurance covering claims arising from negligence or errors in the delivery of professional care services. In senior living, this includes medication errors, failure to prevent falls, inadequate supervision, and improper treatment.

General Liability (GL)

Insurance covering bodily injury and property damage claims from third parties — visitor slip-and-falls, property damage, advertising injury, and personal injury at the facility.

Abuse & Molestation Coverage (A&B)

Dedicated insurance coverage for allegations of physical, sexual, or emotional abuse by staff or between residents. Often sublimited within the primary policy.

Claims-Made Policy

A liability policy that covers claims reported during the policy period, regardless of when the incident occurred. Standard in healthcare liability because it provides more predictable loss development.

Occurrence Policy

A liability policy covering incidents that happen during the policy period, regardless of when the claim is filed. Less common in senior living insurance than claims-made policies.

Tail Coverage (Extended Reporting Period)

An extension purchased when a claims-made policy is cancelled or not renewed, covering claims reported after the policy ends for incidents that occurred during the policy period.

ACORD Application

The standardized insurance application form used across the industry. Required for all senior living liability submissions.

Loss Runs

Historical record of claims filed against a facility, typically required for the most recent 5 years. Must be valued within 90 days of the submission date.

Acuity Mix

The distribution of care levels among residents. Higher acuity (more memory care, more skilled nursing) typically carries higher liability exposure and premiums.

MGA (Managing General Agent)

An insurance entity with underwriting authority granted by a carrier. MGAs like CareFront can bind coverage, issue policies, and handle claims on behalf of their capacity partners.

Lloyd's of London

The world's leading specialty insurance and reinsurance market. Not an insurance company itself, but a marketplace where syndicates provide capacity for specialized risks. CareFront's programs are backed by Lloyd's capacity.

Technology Credits

Underwriting credits (premium reductions) earned by facilities that deploy care technology demonstrating measurable risk reduction. CareFront evaluates 20 technology categories across 6 risk domains.

RTLS (Real-Time Location System)

Technology using BLE, UWB, RFID, Wi-Fi, or GPS to track the location of residents, staff, and assets within a facility in real time. Critical for elopement prevention.

Elopement

When a cognitively impaired resident leaves a facility unsupervised. 60% of Alzheimer's patients will wander. Elopement death settlements average over $600,000.

CMS Star Rating

Quality rating system (1-5 stars) assigned by the Centers for Medicare & Medicaid Services to skilled nursing facilities based on health inspections, staffing, and quality measures.

Fall Detection

Technology systems — camera-based AI, radar, wearable accelerometers, ambient sensors — that automatically detect when a resident falls and alert staff. Published data shows 40% reduction in falls.

eMAR (Electronic Medication Administration Record)

Digital system that tracks medication administration, provides barcode verification, and alerts to drug interactions and missed doses.

Geofencing

Virtual perimeter created around physical zones within or outside a facility. When a resident with a location device crosses a geofence boundary, staff are automatically alerted.

Vendor-Agnostic Underwriting

An underwriting approach that evaluates the risk reduction impact of any technology from any vendor, rather than requiring facilities to use a specific partner's platform. CareFront's core differentiator.

Indemnity

The amount paid to settle a claim. Average fall indemnity in senior living is $226,000. Average elopement death indemnity exceeds $600,000.