Typical Home Care Insurance Package
Typical Home Care Insurance Package:
General liability is a very broad policy form, with several sub-sections of coverage. From a home care perspective, the most common incident that triggers general liability is damage to a client’s property (for instance if a caregiver breaks the Ming vase over the fireplace or starts a fire while cooking). General liability also responds to allegations of libel and slander, slip and fall damage to a 3rd party on your premises, and various other perils.
In a home care setting, professional liability responds to damage to a client due to allegations of improper care or due to the absence of proper care. We have seen claims ranging from improperly reported/treated bed sores, to scalding burns while bathing, to falls while assisting a client down the stairs.
Non-Owned Auto Liability
Non-owned auto liability responds in the event that an employee is in an at-fault accident while driving on the job. For instance, if a caregiver is driving a client on an errand and runs over a pedestrian. Non-owned auto is liability protection for the agency; it does not fix the employee’s car! Non-owned auto claims are our #1 category for claims dollars paid each and every year. Please include this valuable coverage in whatever home care insurance package you take.
Commercial Crime Bond
Bonding responds to allegations of theft from a client’s home, or theft from the employer, by an employee. Theft from a client is the most common claim in home care and can include theft of cash or personal items (jewelry, valuables, drugs), unauthorized use of credit cards, or other means of stealing from the elderly. Increasingly, caregivers have become creative in their efforts at theft. If a dementia client buys a car for the caregiver, is it theft? (Yes).
Workers compensation is mandatory in 49 states (with certain numerical exceptions) and responds to on-the-job injury to employees (and increasingly, contractors). If an employee is hurt on-the-job, it is a workers compensation claim. More information on workers compensation can be found HERE.
Keep in mind that this is a typical home care insurance package. It is our recommended home care insurance package, but some agencies take more coverage than the typical home care insurance package and others take less.
As an Agency Gets Bigger they May Consider the Following Additional Lines of Coverage as Part of a Typical Home Care Insurance Package
Protects your business personal property (copiers, desks, chairs, computers, etc.) from loss. Some policies also provide business income replacement and extra expense reimbursement, both valuable in the event of a catastrophic claim but too complicated to address here.
Employment Practices Liability Insurance
Responds to employment related claims such as EEOC claims, failure to promote, age discrimination, etc. It can also include coverage for wage and hour claims, for instance allegation of failure to pay overtime.
Extends the limits of insurance available on underlying policies. Increasingly, higher limits are required to satisfy contracts with assisted living facilities.
Responds to data breach claims of various kinds including HIPAA and cyber terrorism.
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Why Do Home Care Agency Owners Pay for an Insurance Package? It is different than one might expect.
There are two equally important reasons to take insurance coverage as a home care agency owner:
- First, a business can be a valuable asset, and if something terrible happens, you want to protect that asset.
- Second, and perhaps closer to the heart of the matter, is that you take liability and crime insurance to protect your clients. No home care agency owner seeks to send a caregiver that will negligently let a client fall down the stairs, or steal their valuable possessions. But in the unlikely event that it does happen, a kind-hearted home care agency owner wants the client made whole. Because most of all, home care agency owners care about taking care of people.