Home Care Agency Insurance Cost

Average home care agency insurance cost in 2026

A small non-medical home care agency (under $500K in caregiver payroll) typically pays $2,500–$6,000 per year for general liability + professional liability + abuse & molestation. Add workers' compensation and you're usually in the $8,000–$18,000 total range. Medicare-certified home health agencies with skilled nursing typically pay $12,000–$30,000+ per year for a full program. Hospice programs land between $18,000 and $45,000.

Cost by coverage line

Every home care agency pays for a stack of coordinated policies. Here's what each line typically costs:

• •General Liability — $600–$2,500/yr for $1M/$2M limits
• •Professional Liability — $900–$4,500/yr depending on service mix
• •Workers' Compensation — $2–$8 per $100 of caregiver payroll
• •Non-Owned & Hired Auto — $400–$1,200/yr
• •Abuse & Molestation — $500–$2,000/yr (often bundled)
• •Cyber Liability — $900–$2,500/yr
• •Employee Dishonesty Bond — $150–$500/yr per $10K of limit
• •Commercial Umbrella — $1,200–$4,000/yr for $1M excess

What drives your premium up

Carriers price home care using a handful of levers you can actually control. Prior claims, higher payroll, skilled nursing services, high-litigation states (CA, FL, NY), 1099 caregiver use, and hospital contract requirements all push premium up. Clean loss runs, W-2 caregivers, in-force safety programs, and higher deductibles pull it back down.

Cost by state

State matters more than most owners expect — workers' comp rates and litigation environments vary 3–5x between states.

• •California — high WCIRB rates; small HCO $3.5K–$8K GL+PL
• •Texas — mid-cost; non-subscriber option changes math
• •Florida — high litigation; abuse coverage critical
• •New York — high; adds DBL & PFL on top of work comp
• •Arizona — moderate; growing home care market

How to lower your home care insurance cost

The fastest wins are usually structural, not shopping-around: convert 1099s to W-2 before audit, correct miscoded workers' comp payroll (8829 vs 8835 vs 8854), review your experience mod for reserve-only claims, and consolidate multiple carriers onto a single package. KTL runs each of these at every renewal — clients typically save 10–30% in year one.