The Complete Guide to Home Care Business Insurance
Like all businesses, home care agencies need protection against risks that could negatively impact their patients, employees, assets and bottom line. However, the risks that home care agencies face are different from those of other types of businesses, necessitating specialized insurance coverage.
This article will delve into everything you need to know about home care business insurance so you can choose the right coverage for your business needs.
What Is Home Care Insurance?
Not to be confused with home liability insurance, home care insurance protects companies, providers and professionals in the home care industry.
While home liability insurance protects homeowners from injuries that occur on their property or damage to their property, home care business insurance covers risks inherent in running or working for a home care business.
What Are the Benefits of Home Care Business Insurance?
As in any business that involves providing patient care, many things can go wrong. Unfortunately, this is true even if the home health care business and its team do everything right.
Accidents, adverse effects and human mistakes may occur simply due to the nature of the work. Home care companies and professionals work with individuals who are unwell, elderly or frail.
In the same way that home liability insurance provides reassurance to homeowners, home care business insurance gives business owners and professionals peace of mind. It helps them prepare for these eventualities by ensuring they have the financial resources to defend against legal action.
This type of insurance is particularly essential to small home care businesses that may not have the legal and financial capabilities to recover from a lawsuit. It protects business assets as well as covers some or all of the costs associated with the medical treatment of customers or employees, legal defense and property damage.
What Are the Risks of Not Having Home Care Insurance?
All home care businesses, whether start-ups or established companies, are faced with risks every day. A client could file suit due to bedsores not being properly treated. They may claim damages due to priceless heirlooms accidentally destroyed by a caregiver. An unhappy client may post a negative review of your business online, damaging your reputation.
The costs of defending your business can be astronomical. There are lawyer's fees to pay as well as medical costs and repair or replacement expenses in cases of property damage. Without liability insurance, you would have to pay out of pocket for all of these, which can put your business at significant financial risk.
What Types of Insurance for a Home Care Agency Are Available?
There are several types of business coverage available on the market. However, home care providers will typically need the following:
Professional Liability Insurance
This type of insurance coverage, also known as workers' liability insurance or errors and omissions (E&O) insurance, is used by businesses in all fields. In fact, some states require it.
In the home care industry, workers' liability insurance shields home care providers and professionals from claims of negligence, malpractice and misrepresentation. It also covers accusations of libel, slander and inaccurate advice.
For instance, a claim may arise if a client falls down the stairs while being assisted by a home care professional. If the client or their loved one sues, professional liability insurance will help cover the costs of legal defense, settlements and awards.
Professional liability insurance also covers:
- Damages
- Loss of earnings
- Disciplinary proceedings
- Subpoena assistance
General Liability Insurance
When you run or work for a home care business, you are likely to come across many risks in the course of day-to-day operations. General liability insurance helps shield against these risks.
Some examples are:
Third-party bodily injury: If a patient you're caring for slips and breaks their hip, they can file a lawsuit against you and your business. In situations like this, general liability insurance can help you pay for their medical bills.
Third-party property damage: One of the people you employ is cooking a meal for a patient when they accidentally start a fire. Without coverage, you will have to pay out of pocket to repair the damage caused by the smoke and fire. However, with general liability insurance, you won't have to worry, as it can help cover repair and replacement costs if your business's staff damages a client's property or belongings.
Reputational harm: A client, their loved one or even a third party, like a competitor, can sue you for libel or slander due to something you or one of your workers have said or written. General liability insurance includes coverage against libel and slander as well as similar perils that can impact your business's reputation.
Workers Comp Insurance
Workers compensation or workers comp insurance gives your employees medical and wage benefits if they are injured or become ill in the course of their responsibilities. At the same time, it protects employers from lawsuits by said employees.
How Do I Choose the Right Insurance for My Home Care Agency?
Some businesses get enough coverage from general liability and workers comp insurance alone. However, home care businesses typically need more coverage to protect against industry-specific risks.
Consulting insurance professionals specializing in home care businesses is the best way to find the right type of coverage. In general, however, you should factor in your needs when choosing an insurance policy package.
Suppose your home care business's employees frequently drive clients to and from doctor's appointments using their own cars. In this scenario, you may want to purchase non-owned auto liability coverage as well as general liability and workers comp insurance.
Non-owned auto liability coverage can shield your business if you are sued for medical expenses. It may also cover the costs of repairing the other party's vehicle if the employee's insurance coverage is insufficient.
Protect Your Home Care Business With Tailored Insurance Coverage
The Solutions Group is dedicated to providing home care agencies with insurance solutions customized to their coverage needs. Our products can be scaled as your business grows, giving you the ability to add more lines of coverage to protect your assets and your agency's reputation.
Get a quote for your business. Contact us today.