Workers' compensation is one of the largest premium lines for any home care agency — and it's also one of the most misunderstood. Rates swing dramatically by state, class code, and experience mod. Here's what you need to know.
Is workers' comp required for caregivers?
In nearly every state, yes — as soon as you have one W-2 employee. Texas allows non-subscription, but the liability tradeoffs are significant. True 1099 contractors are generally exempt, but misclassification is heavily scrutinized in home care and reclassification can trigger back premium, penalties, and workers' comp exposure on prior claims.
Class codes that matter
Most home care uses NCCI class code 8835 (Home, Public & Traveling Health Care). Nursing homes use 8829. Companion / homemaker services often qualify for 8854 at a lower rate. Miscoded payroll is the single most common way home care agencies overpay for workers' comp — always ask your broker to confirm your class code annually.
How to lower your workers' comp premium
The three biggest levers are: keeping your experience modification factor (ex-mod) below 1.00 through active claims management and return-to-work programs; making sure payroll is coded correctly at audit; and shopping the market with a broker who has appetite for home care (not every carrier will quote you).
KTL benchmarks your class code, payroll, and ex-mod against multiple carriers at every renewal — often finding double-digit savings without changing your coverage.