Home care agencies operate in a risk environment that no standard business owners policy (BOP) was designed for. Your caregivers work off-site, drive personal vehicles between clients, handle protected health information, and often care for vulnerable adults. That reality demands a purpose-built stack of policies — not a generic small-business bundle.
Here's what a properly built home care agency insurance program looks like.
The eight coverages every home care agency needs
1. General Liability — third-party bodily injury and property damage, including damage caregivers cause inside client homes. $1M/$2M is the typical minimum.
2. Professional Liability — care-related negligence, medication errors, failure to monitor. Written on either a claims-made or occurrence form.
3. Workers' Compensation — statutory in nearly every state as soon as you have one employee. Rates vary 3-5x by state and class code.
4. Non-Owned & Hired Auto — critical if caregivers drive personal vehicles to client homes. Personal auto policies typically exclude business use.
5. Employee Dishonesty / Fidelity Bond — protects against theft by caregivers. Required by many state licenses and referral networks.
6. Cyber Liability — HIPAA breach response, ransomware, notification. Required by most Medicare-certified agencies and hospital contractors.
7. Sexual Abuse & Molestation — hospital systems and state Medicaid programs routinely require a specific per-occurrence abuse limit, typically $1M.
8. Commercial Umbrella — extends liability limits above your primary policies for larger contract requirements.
Why a BOP isn't enough
A standard business owners policy assumes your work happens on your premises. Home care flips that: your exposure moves with every caregiver into hundreds of client homes each week. BOPs typically exclude or restrict professional liability, non-owned auto, and abuse coverage — all essential for home care.
The good news is that a specialized home healthcare program isn't much more expensive than a mismatched BOP once you factor in gap-fill endorsements. Ask an agency that actually specializes in home care.