Home Care Business Insurance

We have been getting emails, FB messages, and even phone calls from future home care business owners who are just TAKEN MASSIVE ACTION!! From setting up LLC's, creating logos, getting licensed, bonded, insured, opening up bank accounts etc. We want to know what you've completed so far. 

Today we will be discussing:

  • Insurance
  • Bonding
  • Hiring Caregiver

 

Insurance 

Similar to the licensing process we were also worried this would be a challenge. Fortunately we found an insurer that not only understood the home care business but also was whiling to finance the policy over the year as to help us afford it. Workers compensation insurance is mandated along with liability insurance for your employees if any. 

 

There are three types of insurance for a home care business. These types include: General liability insurance, Malpractice insurance (for medical or nursing services), and Workman compensation insurance. Several states also require an insurance bond in order to start a home care business. Contact at least three insurance providers for business and general liability insurance quotes. 

General Liability: This type of insurance protects you against claims of negligence or inappropriate action resulting in bodily injury or property damage. 

Malpractice: This is required for all your nurses and nurse subcontractors. The cost of this type of insurance is usually around $80 per year for each employee. The cost of professional liability insurance has risen dramatically in the past 20 years due to a drastic increase of malpractice suits. 

Workman's Compensation: Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain". Although some states do not require this for subcontractors, it is needed for your other employees. It's important to check with the Department of Labor to clarify the requirements of an independent contractor because it varies state to state. This insurance serves your employee and their family in the event of a serious injury or death in the course of employment. 

Bond

Insurance Bond: A bond is a contract, similar to an insurance policy, between a bonding company (called a "surety") and the business that purchases the bond. The bond runs in favor of the third persona to protect that person against financial loss caused by the act or default of the business. Surety bonds guarantee the performance of various types of obligations assumed by contract or imposed by law. Fidelity bonds guarantee against loss due to dishonesty of employees. A surety bond is often required of a business, which is licensed by a unit of local government. Businesses that contract to provide goods or services to the state of other public agencies within the state generally must be bonded. These bonding requirements are established by statute. Bonds are obtained through insurance agents or through a bonding company. The cost of a bond is a portion of the face amount of the bond, and will depend in part on the risk to the bonding company in covering the potential loss.

 

Hiring

The caregivers that work under your home care business are representative of you and your company. You want to make sure that they provide awesome care in order for your company to excel. Find and hire the best employees available as the reputation of your business weighs heavily on the quality of care delivered. Spend time interviewing and checking references, running background checks, to find the most competent, compassionate and resourceful caregivers.

 


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