Home Care Insurance Resources and Expert Guides

Insurance costs vary significantly based on your business type, size, services, and location. As general guidance: independent caregivers typically pay $1,500-$3,000 annually for basic coverage; small home care agencies (5-10 employees) pay $12,000-$25,000 annually for complete packages; medium agencies (20-40 employees) pay $28,000-$55,000 annually; and large agencies (75+ employees) pay $65,000-$150,000+ annually. Home health agencies with skilled services typically pay 20-30% more than non-medical home care. The best way to know your exact cost is to get a customized quote based on your specific situation.

Workers compensation is required by law in nearly all states once you hire your first employee. Medicare-certified home health agencies must maintain professional liability insurance (typically $1M 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 client agreements mandate specific coverages and minimum limits. Requirements vary significantly by state, business type, and payer contracts. [Contact us] to understand your specific requirements.

Home health agencies providing skilled services are legally required to carry professional liability insurance by Medicare and state licensing. For non-medical home care agencies, professional liability is not universally required by law but is strongly recommended and increasingly required by managed care contracts. Even companion care and personal care agencies face negligence allegations including inadequate supervision, failure to prevent falls, hiring unqualified caregivers, and improper care delivery. Defense costs alone average $75,000-$150,000. Professional liability insurance is relatively affordable ($3,000-$8,000 annually for most agencies) and provides essential protection many contracts now require.

General liability covers bodily injury and property damage from your operations, such as client falls, property damage in client homes, and visitor injuries. Professional liability (also called E&O or malpractice insurance) covers negligence in your professional services, such as medication errors, inadequate care, improper supervision, hiring unqualified staff, and care delivery mistakes. Home care agencies need BOTH types of coverage because you face both operational risks (general liability) and professional service risks (professional liability). A client fall might trigger general liability, while allegations you failed to properly train the caregiver would trigger professional liability.

Immediately report any incident to your insurance broker and carrier, typically within 24-48 hours. Document everything: take photos, write down what happened, identify witnesses, and preserve evidence. For general liability and professional liability claims, your carrier assigns a claims adjuster who investigates and handles the claim, providing legal defense if you’re sued. For workers compensation, injured employees receive immediate medical care and the carrier manages the claim. Never admit fault, never discuss the incident with the other party without your attorney, and cooperate fully with your carrier’s investigation. Keep detailed records of all communications. Your broker can guide you through the entire process and advocate on your behalf.