Richmond, Virginia — For months, state health officials knew they weren’t enforcing a law that requires nursing homes to carry minimum liability insurance — and internal emails show at least one supervisor worried about keeping that secret from a reporter.
A December 2025 email obtained through a public records request lays out the problem plainly. A supervisor in Virginia’s Office of Licensure and Certification wrote: “We are not enforcing this requirement.” The same email floated the option of hoping that a reporter wouldn’t “get the scent on this.”
Under Virginia law, nursing facilities must carry at least $1 million in non-eroding general liability coverage per occurrence and $2.7 million in professional liability per occurrence. Every facility is supposed to prove it’s adequately insured during the annual licensure renewal process. Failure to comply “shall” result in license revocation, according to the state code.
What the Lapse Means for Victims
Peter Anderson, a nursing home abuse attorney at Rawls Law Group and a former member of the state’s nursing home advisory board, said the consequences for residents and families could be severe. He’s seen cases where providers turn out to be underinsured — leaving victims unable to collect what they’re owed.
“A lot of these victims have suffered severe and catastrophic injuries, including amputations, pressure ulcers, up to death,” Anderson said. “If nursing homes are allowed to skirt Virginia law without consequence, this could mean that many victims of nursing home abuse and negligence cannot receive justice.”
His reaction to the state’s inaction was direct: “It’s shocking, and it’s sad, because the agency is there to regulate nursing facilities. If they know there’s a problem and the law is clear, they should take action.”
State Officials Say It’s a ‘Complex’ Issue
OLC Director April Dovel, who took over just one month before the 2026 licensure renewal process concluded, pushed back on the framing. She attributed the gap to confusion about the “non-eroding” portion of the insurance requirement, not deliberate inaction.
“This is definitely something that VDH takes very seriously, and this has always been a priority for us,” Dovel said. “I do think there was some confusion about the nuances of the regulation.”
The state’s remediation plan included a review for documentation gaps, outreach to the industry, and a 30-day grace period for providers to come into compliance. VDH said it would pursue enforcement afterward if necessary.
One facility specifically identified as non-compliant was Princess Anne Health and Rehabilitation Center in Virginia Beach — already terminated from Medicare and Medicaid in August 2025 and operating under a consent agreement. After the story became public, Princess Anne submitted an updated insurance certificate that VDH said met the minimum standard. The state issued a new license in March 2026, though the consent agreement remains in effect.
A Broader Question for Regulators
The episode raises a question that goes beyond Virginia: if a state can quietly skip enforcement of its own insurance mandates for months, how confident can residents and families be that the rest of the rulebook is being followed?
As the industry faces increasing pressure on ownership transparency and oversight standards, episodes like this add urgency for state regulators to audit their own internal processes — not just the facilities they’re supposed to be watching. The Virginia Health Care Association said it had provided outreach and education to help members understand the requirements, but didn’t address why enforcement had lapsed.
