National Home Care Agency Insurance and Risk Management

General liability is a standard requirement for your home care agency insurance portfolio to cover accidents like client falls or property damage. This part of your home care agency insurance is often required to secure office leases and state contracts.

What It Covers: Client falls and injuries, property damage in client homes, accidental injuries during care, equipment damage, allegations of improper care, premises liability at your office

Why You Need It: Required by state licensing in many states and by all managed care contracts. Covers bodily injury and property damage claims

Typical Cost: $2,000-$5,000 annually

Professional liability is a core part of any home care agency insurance package, protecting your staff against allegations of negligence or errors in care. Even in non medical settings, this layer of home care agency insurance is essential for long term stability.

What It Covers: Allegations of negligent care, inadequate supervision, improper transfer techniques, failure to prevent falls, hiring unqualified caregivers, breach of care plan

Why You Need It: Even though you’re non-medical, you provide professional care services. Many contracts now require this. Protects against negligence allegations

Typical Cost: $3,000-$8,000 annually

Under state law, your home care agency insurance must include workers compensation to protect your employees from work related injuries. This is a vital part of home care agency insurance that handles medical costs and lost wages.

What It Covers: Employee injuries including back strains from lifting clients, auto accidents between clients, slip and falls in client homes, injuries from aggressive clients

Why You Need It: Legally required in nearly all states when you have employees. Covers medical expenses and lost wages for injured workers

Typical Cost: $8-$12 per $100 of payroll for caregivers

Protecting vulnerable clients is your top priority, which makes Sexual Abuse and Molestation (SAM) coverage an essential part of home care agency insurance. This provides a specialized defense against allegations of misconduct or negligent supervision.

• What It Covers: Legal defense costs, settlements, and crisis management related to allegations of physical or sexual abuse by staff members or contractors.

• Why You Need It: These claims are almost always excluded from standard general liability policies.Including this in your home care agency insurance portfolio is vital for protecting your agency’s reputation and financial future.

• Typical Cost: $500–$1,500 annually depending on your agency’s screening protocols and total staff count.

Since most caregivers use their personal vehicles to visit clients or run errands, home care agency insurance must include Hired and Non-Owned Auto (HNOA) coverage. This protects your agency when an employee is involved in an accident while on the clock, as their personal policy may exclude business use.

What It Covers: Liability for accidents caused by employees driving personal, rented, or borrowed vehicles for agency business (e.g., driving a client to an appointment or picking up supplies).

Why You Need It: Most personal auto policies will deny claims if the vehicle was being used for work. Without this in your home care agency insurance plan, your agency could be held directly liable for massive settlement costs.

Typical Cost: $100–$500 annually when added as an endorsement to your general liability or commercial auto policy.

As agencies move toward digital scheduling, home care agency insurance must include cyber protection. This ensures your home care agency insurance handles data breaches that compromise sensitive client information.

What It Covers: Data breaches, ransomware attacks, stolen devices with client data, HIPAA violations if you handle protected health information

Why You Need It: You store client personal information electronically. Data breaches cost $200,000+ on average. Increasingly required by contracts

Typical Cost: $1,500-$3,500 annually