The three things called a bond
Knowing which one your agency actually has is the difference between paying a client's claim and explaining why you cannot.
| Product | Who it protects | Typical trigger |
|---|---|---|
| Employee dishonesty policy | The agency | An employee steals the agency's money or property |
| Third-party fidelity bond | The client | A caregiver steals cash, jewelry or medication from a client's home |
| State license / surety bond | The public and the regulator | Required for licensure; the surety pays and then seeks repayment from you |
Why the third-party extension is the one that matters
Standard employee dishonesty covers theft from the insured — your agency. A client's missing ring is theft from someone else. The third-party extension, sometimes sold as a client-property or caregiver dishonesty endorsement, is what lets you pay that claim and keep the family and the referral source. Ask for it by name; it is not automatic on every crime form.
How a claim typically plays out
A family reports missing cash after a shift. The agency investigates, files a police report, and submits a claim. Most carriers require proof of loss and, in many cases, a police report or a conviction before paying. This is why documentation policies — no caregiver access to cash, signed logs for purchases made on a client's behalf, medication counts — are worth more than a higher bond limit.
Limits and cost
Home care agencies most often buy $10,000 to $100,000 of dishonesty coverage. Premium typically runs from roughly $150 to $600 a year depending on the limit, employee count and controls. State license bonds are priced as a percentage of the bond amount and depend on the owner's credit — California's $10,000 CDSS Home Care Organization bond, for example, commonly runs $150 to $400 a year.
How to advertise it accurately
Say bonded and insured only when you hold a dishonesty bond with third-party coverage plus general and professional liability. Clients and referral sources increasingly ask for the certificate, and misstating coverage in marketing is a licensing complaint in several states. KTL issues certificates the same day so you can back the claim up in writing.
Have Insurance Requirements From a Client?
Send us the insurance requirements from your contract, lease, vendor agreement, or licensing agency. A KTL commercial insurance specialist will review the requirements and help determine the coverage, limits, and endorsements you need.
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