The most common question we get from new home care agency owners is simple: what does home healthcare insurance actually cost? The honest answer is that premiums vary widely — but there are clear benchmark ranges we see across our home health book.
This post breaks down what a non-medical home care agency, a Medicare-certified home health agency, and a hospice provider can expect to pay in 2026 — and the seven factors that drive your specific number.
Non-medical home care agencies
Small non-medical home care agencies (personal care, companion, homemaker) typically pay $2,500 to $6,000 per year for general liability plus professional liability. Add workers' compensation — usually 3% to 5% of caregiver payroll — plus non-owned auto ($500 to $1,500) and cyber liability ($800 to $2,500), and a typical small agency is looking at $8,000 to $15,000 total.
Medicare-certified home health agencies
Medicare-certified home health agencies delivering skilled nursing, physical therapy, or occupational therapy typically pay $8,000 to $25,000 or more for a full insurance program. Larger agencies with multiple offices, IV therapy, or wound care can exceed $50,000 annually.
The driver here is professional liability severity. Medicare-certified agencies typically need $2M to $5M professional liability limits to satisfy hospital contracts and CMS Conditions of Participation.
Hospice programs
Hospice programs carry the highest professional liability severity in home healthcare and typically pay $15,000 to $40,000 or more for a full program including palliative care coverage, non-owned auto, cyber, and abuse & molestation.
What actually drives your quote
Underwriters price your program based on your state, total annual payroll and revenue, service mix, number of caregivers, 1099 versus W-2 classification, five years of prior claims, your experience modification factor, and contract-required limits. Two agencies with the same headcount in different states can pay very different premiums.
The single biggest way to lower your cost is to shop the market every renewal — not just when your carrier hikes you 30%. KTL benchmarks your risk across dozens of top-rated home healthcare carriers each year.