Covers bodily injury and property loss to residents (the elderly) from accidents arising while professionals such as social workers and care workers perform their duties at a long-term-care institution. Essential for facilities such as group homes, nursing facilities and senior welfare centres.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Social welfare facility liability insurance covers the legal liability for bodily injury or property loss caused to others (including residents) by an accident arising while professionals such as social workers and care workers perform their duties at a long-term-care institution, or while the insured performs work according to the use of a long-term-care institution and its facilities that it owns, uses or manages.
Under the Long-Term Care Insurance Act, the Enforcement Rule of the Elderly Welfare Act and the Act on the Use of Social Services and Management of Vouchers, certain social welfare facilities must hold liability insurance. The director's civil liability for in-facility incidents such as resident falls, pressure ulcers and swallowing disorders is increasingly expanding.
Compensation for resident bodily injury — falls, pressure ulcers, airway obstruction, medication errors — and the resulting treatment costs and consolation money.
Covers negligence accidents caused by social workers, care workers and nursing assistants in the course of duty.
Combined cover for facility risks — building/fixture defects, slips, scalding.
An additional limit can be designed for major loss exceeding the base limit.
Facilities caring for grade 1–2 long-term-care elderly.
Day-care facilities for daytime care and short stays.
Operators with visiting-care, visiting-bathing and visiting-nursing staff.
Both residential and day facilities can be covered.
| Limit | Bodily KRW 100m / property KRW 10m · facility + care-worker combined |
|---|---|
| Key endorsements | Professional extension + on-site medical + excess-compensation endorsement |
| Limit | Bodily KRW 50m / property KRW 5m |
|---|---|
| Key endorsements | On-site medical + professional liability |
| Limit | Bodily KRW 100m / property KRW 10m |
|---|---|
| Key endorsements | Driver extension when operating a vehicle |
※ The above are general design examples; actual premium and limits may differ according to the risk profile of the business, past claims history and the insurer's assessment. An exact quote is tailored on request.
A family had placed a father with long-standing dementia in a professional care facility, then was told he had fallen and fractured his hip while a care worker was assisting with toileting. With reduced muscle mass and bone density, the elderly suffer fractures often. The facility was able to compensate the consolation money and treatment costs through welfare-facility liability insurance.
A grandfather was recovering from a stroke at a care facility; seeing severe pressure ulcers, the family protested poor management. The facility responded to the family's claim through insurance.
A resident with a Parkinson's-related swallowing disorder suffered airway obstruction and breathing difficulty during a meal, was given first aid and transferred to intensive care. The family argued the facility breached its prevention and observation duties, and the facility's liability was recognised.
※ The above are generalised examples of industry claims; actual cover outcomes may differ according to the wording and application terms.
| Policy period | 1 year, renewable |
|---|---|
| Payment | Single (annual) payment |
| Insurers | DB · KB · Meritz · Hyundai |
| Channel | Individual consultation with our broker (010-5755-6465) |
| Turnaround | 2–3 business days |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Common risk patterns in care settings — a five-scenario self-check
Nursing-facility residents have a high risk of falls and fractures from reduced strength and bone density, and the director's safety-management responsibility tends to be broadly recognised.
Under the Long-Term Care Insurance Act, the Enforcement Rule of the Elderly Welfare Act and others, certain social welfare facilities must hold liability insurance.
Negligence accidents while social workers and care workers assist with toileting, movement and meals lead to the facility's liability.
Home-visit care performed off-site also carries accident risk in the course of duty, so cover must be designed.
Both residential and day disability and child welfare facilities incur the facility's protection and management responsibility for user accidents.
When a resident is hurt at a social welfare facility, the facility tends to say “staff were present and did their best,” while the family says “the prevention and observation duties were not met.” Accidents from falls, pressure ulcers and swallowing disorders occur often given the elderly's physical characteristics, but a court strictly examines whether the facility met the observation and protection duties suited to the resident's condition. Social welfare facility liability insurance covers the legal liability for loss caused to others — residents or visiting family — by the director and professional staff in the course of work and facility management. The starting point is that, separate from the good intentions of care, legal liability is judged by an objective standard of due care.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
A resident accident arises not only from the facility's own management responsibility but also from the professional negligence of social workers and care workers. Check whether the professional-liability extension endorsement is included.
A serious bodily-injury accident can involve large compensation. An excess-compensation endorsement for loss beyond the base limit should be considered.
Elderly, disability and child facilities, and residential, day and home services, differ in risk and user mix. The covered subjects and scope must be designed to the form of facility you operate.
The questions asked most when considering social welfare facility liability insurance
Under the Long-Term Care Insurance Act, the Enforcement Rule of the Elderly Welfare Act and the Act on the Use of Social Services and Management of Vouchers, certain social welfare facilities must hold liability insurance. Whether your facility is subject should be checked against the relevant law and local-authority criteria.
Among resident bodily injuries, loss for which the facility's or professionals' legal liability is recognised is covered. Additionally, with an on-site medical endorsement, treatment costs for in-facility incidents can be covered up to a set limit regardless of fault.
Negligence accidents caused by professionals — social workers, care workers, nursing assistants — in the course of care are covered. A professional-liability extension endorsement can broaden the scope.
Accidents during home services such as visiting care, bathing and nursing can also be designed into cover. Check at application that they are within cover for the service form you operate.
Loss claimed by a family, such as consolation money for a resident's bodily injury, is covered to the extent the facility's legal liability is recognised. Loss to third parties such as visiting family and volunteers while using the facility can also be within cover.
The insurer calculates it based on facility type, capacity and number of users, the range of services provided, the limit and endorsement structure, and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
