California Requirements

California Home Care Agency Insurance Requirements

California home care agencies face some of the most specific insurance requirements in the country. Between the CDSS Home Care Organization (HCO) bond, WCIRB workers' compensation rules for personal attendants, and CDPH Medicare-certified home health requirements, it's easy to under-insure — or overpay. Here's exactly what California home care and home health agencies are required to carry in 2026.

  • HCO $10K surety bond required by CDSS
  • Workers' compensation for every employee (WCIRB)
  • $1M/$2M GL is the practical floor for Medi-Cal contracts
  • AB 5 essentially forces W-2 classification

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CDSS Home Care Organization (HCO) bond

Every non-medical home care agency licensed as a Home Care Organization by the California Department of Social Services must post a $10,000 surety bond before licensure. The bond protects clients against caregiver theft and dishonesty. KTL includes HCO bond placement as part of every California home care program.

California workers' compensation

California requires workers' compensation for essentially every employee — including part-time caregivers. Rates are governed by the WCIRB and are among the highest in the country for home care class codes 8829, 8835, and 8854. Miscoded payroll is the single most common way California agencies overpay.

General liability & professional liability minimums

CDSS does not set a hard GL minimum, but Medi-Cal managed-care contracts, IHSS referrals, and hospital discharge partners almost universally require $1M/$2M general liability and $1M professional liability with primary & non-contributory additional insured status.

CDPH-licensed home health agencies

Medicare-certified home health agencies licensed by CDPH face higher expectations — usually $2M/$4M GL, $1M/$3M professional liability, cyber liability, and abuse & molestation coverage. Hospice programs licensed by CDPH add higher professional liability and often a commercial umbrella.

AB 5 & caregiver classification

California's AB 5 test makes it very difficult to classify home care aides as 1099 contractors. Misclassification triggers back workers' comp premium, wage claims, and license risk. Plan for W-2 classification when budgeting your California insurance program.

Non-owned & hired auto

Because California caregivers routinely drive personal vehicles between clients, non-owned & hired auto coverage is essential. Personal auto policies exclude business use, leaving the agency directly exposed after an accident on the way to a shift.

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Frequently asked questions

At minimum: a $10,000 HCO surety bond (CDSS), workers' compensation, general liability, professional liability, and non-owned auto. Medi-Cal, IHSS, and hospital contracts almost always push GL to $1M/$2M and add cyber and abuse & molestation coverage.