What Insurance Do You Need If You Are in the Home Care Business

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The home care industry is growing. With demand comes responsibility. Home care poses greater risks than taking care of patients in a medical facility or a nursing home. This is because in an in-home care setup, the responsibility and risks will be solely on your shoulders. To protect your business and your personal assets from such risks, you need insurance.

Getting insurance for your home care business is not an option. It’s a must. Without proper insurance, you can end up losing your business in the event that you’re bombarded with claims. This is the reality, since we are living in a litigious society. 

Since you will be spending on insurance, you need to boost your business as well to survive. In order to grow your business, you need to make sure you are getting home care leads because your operation cost may be expensive due to insurance. 

Professional liability insurance

There are many types of insurance to choose from. However, if you’re in the home care business, the most important insurance for you is professional liability insurance. This insurance gives your business the right protection against lawsuits resulting from negligence, clinician misconduct, and malpractice. 

No matter how great your services are, there will always be that possibility of running into a dissatisfied client. When that client files a claim against you, you will have to pay for legal and settlement costs. These can be expensive. With professional liability insurance, you can put a stopping gap and protect your professional business and personal assets. 

Risks and claims

Your employees are your responsibilities. Unfortunately, you cannot always be there to monitor and supervise your employees when they are in their respective clients’ homes. Even if your employees are not directly responsible, if something happens while the patient is under their care, they can be blamed for it. 

When the patient is injured while at your caregiver’s care, then that patient may think that it’s because of your employee’s negligence. The patient may perceive that he or she has been injured due to the caregiver’s failure to provide standard and adequate service. When such a patient sues you, the litigation and other costs can eat up your assets. Hence, professional liability insurance is highly essential.

Take note, however, that the following are not covered:

  • Intentional acts;
  • Acts done outside the scope of home care duties; and
  • Criminal actions and charges.

Coverage and costs

With regards to the amount of coverage needed, there’s really no specific amount. Here’s a rule of thumb though: it must be as high as you can afford. If your company can afford it, a $1 million coverage amount is ideal. 

The costs should depend on the assessed risks and rates. Start on an amount that your company can afford. As your company starts to grow, then you can just adjust the coverage. As your business grows, you will need to make changes to your insurance coverage as well. 

You may think that insurance is too expensive for your home care agency. Yes, it can be expensive. However, it’s your safety net and hence, a great investment for the continuity and growth of your business. For lead generation and other digital marketing needs, you can check out Senior Care Clicks.

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