National Home Care Business Insurance for Agencies

Unlike hospitals or facilities with supervision and backup, home care happens in private homes without oversight. Caregivers work alone making independent decisions. Each client home presents unique hazards including pets, stairs, clutter, smoking, and family dynamics. This uncontrolled environment creates exposures standard business insurance doesn’t address.

Home care serves elderly, disabled, cognitively impaired, and medically fragile clients. This vulnerable population faces higher injury risk and is more likely to suffer serious harm from accidents or care errors. Juries are extremely sympathetic to injured elderly victims, resulting in higher settlements and verdicts. Insurance underwriters understand these elevated risks.

Home care providers face complex federal and state regulations including Medicare Conditions of Participation, state licensing requirements, HIPAA privacy rules, and payer contract obligations. Many regulations mandate specific insurance coverages and minimum limits. Specialized carriers understand these requirements and design policies accordingly.

Home care creates both professional liability (errors in care) and general liability (accidents and injuries) exposures simultaneously. A client fall could be general liability (accident) or professional liability (inadequate supervision). You need both coverages working together seamlessly.

Insurance costs vary significantly based on provider type, services, employee count, revenue, location, and claims history. As general guidance: independent caregivers might pay $1,500 to $3,000 annually for basic coverage, small agencies with 5 to 10 employees typically pay $8,000 to $15,000 annually for complete packages, and medium agencies with 25 to 50 employees often pay $20,000 to $40,000 annually. Large agencies and those with skilled services pay more. The best way to know your cost is to get a customized quote based on your specific situation.

Requirements vary by state and provider type. Workers compensation is required in nearly all states once you hire your first employee. Medicare-certified home health agencies must maintain professional liability insurance (typically $1 million per claim minimum) as a condition of certification. Many states require licensed home care agencies to carry general liability insurance. Beyond legal requirements, most managed care contracts, facility partnerships, and payer agreements mandate specific coverages and limits. We help you understand your specific requirements.

Yes. Independent caregivers, self-employed nurses, and solo practitioners can obtain individual professional liability insurance, general liability coverage, and business owner’s policies (BOPs) designed for individual providers. Coverage is affordable (often $1,500 to $3,000 annually) and essential whether you work as a contractor for agencies or provide private care directly to clients. Many agencies require contractors to carry their own insurance.

Start with legally required coverage (workers compensation if you have employees) and essential protections (general liability at minimum). As your business grows and generates revenue, add additional coverages. We can phase your insurance program to match your budget while prioritizing the most critical exposures first. Many carriers offer payment plans spreading premiums over 10 to 12 months, improving cash flow. Don’t skip insurance entirely; even basic coverage is better than operating uninsured.

While not legally required for non-medical home care agencies, professional liability insurance is strongly recommended. Even companion care and personal care agencies face negligence allegations including inadequate supervision, failure to prevent falls, medication reminder errors, improper transfers, and hiring unqualified caregivers. Defense costs alone average $75,000 to $150,000. Many managed care contracts now require professional liability even for non-medical agencies. The coverage is relatively affordable and provides essential protection.

Timeline depends on coverage type and business complexity. General liability and professional liability for established agencies typically take 3 to 7 business days once we have complete applications. Workers compensation can take 1 to 2 weeks. New businesses or those with claims history may take longer as carriers review risk more carefully. If you need coverage urgently for a contract deadline, tell us immediately. We can often expedite review with carriers or arrange temporary binders while full underwriting completes.

Report claims to us immediately and we coordinate with your insurance carrier. For general liability and professional liability, the carrier assigns a claims adjuster who investigates and handles the claim. The carrier provides legal defense if you’re sued. For workers compensation, injured employees receive immediate medical care and wage benefits while we manage the claim. We advocate for you throughout the process and help ensure fair claim handling. Most claims resolve without litigation through settlement negotiations.

Yes. We’re licensed in all 50 states and regularly work with home care providers operating in multiple states. We coordinate coverage across all your locations, ensure compliance with each state’s requirements, handle state-specific workers compensation, and provide unified insurance management through one point of contact. Multi-state operations are more complex but we have the experience and licensing to serve you everywhere you operate.