Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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business insurance Home Health Care provider

One of the very first questions a business owner should ask when starting a business is: do I need business insurance as a home health care provider? The answer to that would be a definite yes. Learn more on why business insurance for a home health care provider is a necessary expense.

Find the best possible rates on business insurance by comparing quotes online. Enter your zip code above to save!

Home Health Care Provider Business

The home health care provider business is projected to grow in the coming years. According to Inc. Magazine in May, 2010 it ranked as one of the best businesses to start. Further, according to IBISWorld the annual revenue growth for home health care providers is 4.9 percent through 2014. This is due to the growth of services for the elderly and disabled which is projected to be one of the fastest growing industries in the coming years.

The number of people in the United States that are age 65 or older as of June, 2009 was 39 million. That is a lot of people who may need home health care services as an alternative to in-patient care in hospitals or long-term care facilities. Even chronically ill patients often want to remain in their homes surrounded by their cherished memories and loved ones.

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Types of Business Insurance for Home Health Care Providers

Just about every business needs some type of business insurance to protect the business owner against liability claims.

Home health care providers should ensure they have several types of insurance since they are going into other people’s homes and actually touching their clients.

Types of insurances that are critical, even for a start-up business include:

General Liability Insurance

A home health care provider should have the standard $1 million per occurrence/$3 million aggregate insurance for the company and all employees. This insurance provides coverage for claims against bodily injury and property damage.

Further, general liability will cover any fire, water, product and legal liability. If the home health care company is going into other people’s homes, this coverage is critical. It can also cover any claims brought against the company for advertising injury, and covers miscellaneous medical liability payments.

Professional Liability

professional liability

If a person brings a legal action against the home health care provider, this insurance will protect the company and employees against injuries that are the result of any act or omission of the employee, including negligent acts or errors and omissions whether they are actual or alleged.

These claims can come from providing or failing to provide promised healthcare services in the scope of the business. The standard levels of coverage for professional liability insurance is $1 million per occurrence/$3 million aggregate coverage, though other levels of coverage are available.

These two insurances are important to protect the company and staff against claims of negligence or inadequate care.

Caring for someone’s loved one can be an emotional time, and family members may not understand care provision.

Protecting the business and the business reputation provides the business owner with security and peace of mind, even if a care provider is at fault.

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Essential Home Health Care Provider Insurance

Due to the nature of the business, there are other insurances a home health care provider should have.

Sexual Misconduct – Unfortunately, it is important to protect the home health care business against any actual or alleged abuse, assault or sexual molestation by an employee. Even though employees, whether contract, independent or actual employees of the company should be licensed, insured and bonded, it is better to have the coverage and not need it than to have an employee accused of an act and having to pay expensive legal judgments.

Hired and Non-Owned Auto – If an employee or contract employee has an accident while performing services relative to the home health care business, and a law suit is brought against the company, this insurance will provide coverage for those claims. Employees or contract workers should have their own automobile insurance covering the mileage they incur during their work, but they cannot always be depended upon to comply with this Federal guideline.

Property and Business Interruption – If there are any disruptions to the business operations, such as fire, water damage or other physical loss to the office contents, the business will be covered for loss value and/or income. This loss coverage includes electronic data, accounts receivables, valuables, and even property in transit and business personal property of others employed in the business.

Dishonest Employee/Third Party Theft Bonds – In the situation where an employee or contracted employee is dishonest and a claim against the home health care provides ensues due to theft or loss of money or property, the home health care insurance will provide coverage.

Importance of Employee Insurance

Friendly Medical professionals

Are these insurance coverage policies necessary for a home health care business? If outside contract employees or direct employees are being hired to provide care under the license of the business, these insurances are critical to protect the business owner’s business and/or personal property. Lawsuits are expensive and time-consuming, but are unfortunately a part of doing business when taking care of other people in their homes.

The most careful review of employees working for the business can still mean that a dishonest person is hired or contracted to provide care. The home health care business should utilize services of companies that perform extensive background checks on all potential employees, including hair analysis for drug and alcohol testing. These expenses will pay off in the long term if they help weed out inappropriate candidates for employment.

Home health care providers who have their dedicated staff should also review Worker’s Compensation insurance as well as health insurance policies.

Getting Quotes

Research all insurances carefully, and get at least three comparative quotes on rates. Also check out the insurance company’s rating with the local state Department of Insurance, and check the Better Business Bureau. Quotes can be obtained over the internet, but if the insurance company has local representatives a face-to-face meeting can help the business owner determine a good company, as that may be the person they deal with if any claims occur.

Also, check the customer service response for a prospective insurance company, as prompt and courteous service when it is needed will make the process less stressful. Enter your zip code below to find the best possible rates on business insurance.