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What Insurance Do I Need for a Home Health Business?


Taking Care of People Presents Risks

The demand for home healthcare businesses is growing, especially as baby boomers become part of the elderly population.

Protect Your Personal and Business Assets

Regardless of age, most prefer having in-home care if they need ongoing care versus going to a nursing home. Unfortunately, taking care of people in their homes also presents risks.

Your business is an asset of yours, similarly to the way a home or car is an investment or asset you want to protect, so is your business. Nonetheless of its size, you are investing time, money, and dedication into your business, and you should take every precaution necessary to protect it. Over time, your insurance needs will change as your business grows and evolves; here are initial insurance products that you should consider.

The insurance you will want to purchase first and foremost is professional liability insurance.


I’m a Home Healthcare Worker: Do I Need Professional Liability Insurance?


Working in the home may feel vastly different from working in a hospital or other medical facility yet, there are certain regulations and codes that must be followed.

Professional liability Insurance is often referred to as Errors and Omissions insurance. This insurance protects you against lawsuits from malpractice or clinician misconduct or

negligence. Even the best healthcare providers can experience a dissatisfied client or company that could file a claim against you if they believe you are liable for damage or harm. Unfortunately, even if you are not at fault, you could be held responsible for legal defense or settlement costs.


Home Health Trends

There are currently 12 million patients and more than 428 million patient visits conducted each year.


Home Healthcare providers drove more than 5 billion miles in 2018.


About 70 % of those using home healthcare services are age 65 and older. In this age group, the most common medical conditions requiring home care are: heart disease, diabetes, and cerebral vascular diseases.


Over 1/3 of the persons requiring in-home care are under age 60, availing assistance for rehabilitation, are disabled, or have chronic health conditions, often requiring patient aids for assistance


The rise in sport injuries, home, and vehicle accidents has increased the need for in-home care about 10 times.About 8 million of the elderly population have some form of disability requiring assistance, and often have some hospital furniture at home to help them. This number is projected to be 15 million by 2020.


What other Insurance do I need?


General liability insurance

General Liability protects you from allegations of bodily injury or property damage on your or your customers business premises or due to the business operations, personal and advertising injury, and medical payments. It specifically excludes certain types of risks, including professional service, pollution, liquor, and directors and officers liability, and separate insurance policies are available to cover these situations. Claim examples; a client is injured due to falling over your bag, or you accidentally spill a cup of coffee on a client causing a severe burn; your coverage can pay for medical bills and your legal defense costs.


Property and Business Income Insurance

Property and Business Income Insurance protects your building if you own your building or assists you to recover if you are in a leased property. Most often, lease contracts have an insurance clause that specifies what coverage is required and who is responsible to pay for it. Some insurance requirements are common, such as property damage and liability coverage, while others are more specific to the leased space, such as loss of rent or business interruption coverage. Business Personal Property coverage protects the cost and replacement of furniture, office supplies and electronic equipment against fire, theft and vandalism. One of the most important insurance coverage you can buy is Business Income. Business Income(interruption) protects your income during the time it takes you to restart your business and the associated extra expense.


Cyber Liability: Do you Store Your Client’s Data?

Do you store your client’s data electronically, use email to communicate with your clients or have a company website?

Home healthcare firms and workers are increasingly vulnerable to data breaches due to the confidential information they possess on their patients. This information may include patient names, date of birth, and personal addresses. Home healthcare agencies are

responsible for protecting this information and should the data end up in the wrong hands, even among firms with best practices firmly in place they face the challenges of notifying patients, potential liability damages, regulatory investigations, and possible fines and penalties. Our staff is knowledgeable about the cyber liability needs of healthcare providers and can help to market, structure and create a flexible cyber insurance policy designed to address these exposures including first- and third-party losses, covering the costs of patient notification, credit monitoring, crisis management, regulatory investigations and business interruption as a result of the breach. We want to ensure your reputation; business relationships and income are protected.


Growing Workforce | Workers’ Compensation


Growing workforce in the Healthcare industry is translating into a greater demand for home healthcare services. As per the statistics published by the U.S. Bureau of Labor Statistics, the ranks of personal care and home care aides are projected to increase to around 13.0 million by 2020, which is approximately 70.0% hike from 2010.


If you hire employees, you will need to purchase Workers’ Compensation Coverage.

Workers’ Compensation pays medical bills and lost wages directly to your employees due to work-related injuries. It additionally protects your business if an employee sues for damages because they were injured as a result of working for your company. Workers’ Compensation is required in most states, you can locate the State of California Workers’ Compensation requirements at: https://www.dir.ca.gov/dwc/faqs.html


What Type of Auto Insurance do you need to purchase?


Automobile Insurance covers your owned or leased company vehicles. Hired and Non-Owned automobile insurance can be easily added to your policy and it protects your business against bodily injury and property damages in the event there is an accident that you are held liable for resulting from an employee driving a company owned-vehicle or is transporting a client to an appointment during their duties with their personal vehicle.


If you have home care workers that must commute to their patients’ homes every work day as a condition of employment or if you drive patients to and from appointments as a service you’re paid for, you need commercial coverage. Your claims could be declined if you drive patients around and you’re paid for the service under your personal insurance. You will to ensure that you have high enough of limits of liability that will help protect your personal and business assets.


If you must sign an employment agreement acknowledging that you have the proper automobile insurance limits. Most contractors are required to show evidence of insurance to protect the firm of and common limit requirements are $100,000 in Bodily Injury Liability, $100,000 in Property Damage Liability, $100,000 Combined Single Limit or higher.


Do I need a Surety Bond?


Are you currently a nurse, nurse practitioner or other home-based health care provider?

Yes, a Home Health Care Bond will serve as proof to the local area governing bodies assurance that you will execute your duties lawfully and faithfully without malice or ill intent toward your clientele. This is a requirement of most state and local agencies

that oversee your industry and is necessary to maintain compliance with the local laws and statutes in your region.


Why Do I Need a Medicare Bond?


If you accept Medicaid through your healthcare practice. These services might include physician groups, ambulance transportation providers, home health agencies and personal care assistance providers.


Medicaid provider surety bonds or a patient trust bond provides assurance that healthcare providers who are accepting Medicaid or handing patient’s personal funds are conducting business honestly and complying with state statutes.

Each surety insurance contract provides a financial guarantee that a business will fulfill an obligation according to contractual terms.

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