Ways Home Care Liability Insurance Can Help Protect You From Financial Losses

Ways Home Care Liability Insurance Can Help Protect You From Financial Losses

Home health care agencies and workers conduct essential work. They care for individuals who are ill, elderly or otherwise in need of in-home support to improve or maintain their quality of life. 

However, accidents and mistakes can sometimes happen. When they do, home care agencies and professionals are left dealing with the fall-out: Legal action from upset patients and their loved ones. 

Homecare liability insurance acts as your first line of defense against the consequences of several common claims. Read on to learn more. 

What Is Homecare Liability Insurance?

Homecare liability insurance is business insurance tailored for home care health agencies and providers. It consists of one or more types of coverage bundled together for greater protection and more savings. 

The purpose of homecare liability is to ensure that businesses don’t have to pay out of pocket for legal and medical costs arising from accidents, errors, malpractice and negligence claims as well as other risks common to the industry. 

The following are some types of coverage typically included as part of a homecare liability insurance package and what incidents they protect against.

General Liability 

This type of insurance policy provides broad coverage, shielding home health care agencies and providers from the financial impact of lawsuits due to bodily injury and property damage. Depending on the terms of the policy, it may also provide protection from slander and libel. However, it’s helpful to keep in mind that general liability does not cover claims of negligence.

In the home care setting, general liability applies most often to claims of damage to the client’s home or belongings.

For example, you were cooking the client’s dinner but paused to answer a call. The dinner burns, starting a small fire that spreads through the kitchen. In this situation, general liability insurance will help you cover the costs of repairing or replacing the client’s damaged property.

Professional Liability 

Also called “workers’ liability insurance,” professional liability insurance is a must for businesses in the home care industry. This is because it protects against claims of negligence, malpractice and misrepresentation, which general liability alone does not. 

A typical workers’ liability insurance policy will indemnify the insured party, in this case, the home health care agency, against losses incurred from claims made due to negligent acts, errors and omissions. Some examples of claims that professional liability insurance protects your business against are those of improper treatment and preventable accidents. 

Non-Owned Auto Liability 

This is a necessary type of insurance for a home care agency with caregivers who use their own vehicles while providing their services, such as for accompanying clients on errands. It protects home health businesses from liability in case an employee gets into a car accident.

For example, a caregiver drives to the pharmacy to pick up a patient’s prescription. On the way, they get into an accident with another vehicle. Non-owned auto liability insurance will also help to pay for repairs to the other party’s car if the caregiver’s own insurance can’t cover it. Additionally, it shields the home health agency from liability if the other party decides to sue it for medical expenses. 

It’s important to note that non-owned auto liability insurance does not apply to vehicles rented, leased or hired by a home health care agency, only to employee-owned vehicles. It also does not pay for the repair or replacement of the caregiver’s car. 


Workers’ Compensation 

This insurance policy protects the employees of home care agencies. It provides benefits to workers who have been injured or become ill due to work-related reasons. These may include:

  • Compensation for lost wages, if the employee needs time to recover from their illness or injury 
  • Disability benefits, if the injury or illness caused a partial or permanent disability 
  • Coverage for ongoing care, such as physical rehabilitation 
  • Death benefits, often including money to cover funeral costs and to pay benefits to the survivors if the employee dies 

It also helps protect the business from the unexpected and often high costs of their workers’ care in case of an accident, illness or injury. 

Commercial Crime Bond 

Sadly, theft is a common claim in the home care insurance industry. Caregivers may steal from their elderly or ill patients, taking away their cash and valuables or even using their credit cards without permission. It also covers your business if an employee decides to steal from you. You need this kind of insurance for your home care agency to protect against theft and other dishonest acts, whether against your business or a client. 

Insurance Coverage Designed for Home Health Agencies and Caregivers

The financial repercussions of a lawsuit, theft or even a car accident can be difficult for a home health business to recover from. Help protect your home health agency by providing it with coverage tailored specifically to the needs of businesses like yours. 

The Solutions Group takes pride in offering broad coverage at reasonable rates. Our hassle-free application process can be done online or by phone, and we guarantee a quote within 24 hours. Contact us today to learn more. 


Leave a Comment