Home care agency insurance: types to ask your broker about

Why insurance comes up early

Insurance isn’t just protection for a home care agency. It’s often a requirement. State licensing applications, Medicaid provider enrollment, managed care contracts, referral partners, and even office landlords may ask for proof of specific coverages and limits, and those requirements differ by state and payer. If you shop for insurance after everything else, it can hold up your launch.

This guide lists the coverage types founders commonly discuss with a broker. It doesn’t recommend limits or quote prices. Those depend on your state, services, staff, and contracts.

What the SBA says businesses with employees need

The U.S. Small Business Administration’s insurance guide says the federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance, and that “some states also require additional insurance.” It also advises that “as a general rule, you should insure against things you wouldn’t be able to pay for on your own.” (Source: SBA, Get business insurance, checked on 2026-09-25.)

How those requirements apply where you are, including whether your state mandates disability insurance, is a question for your broker and CPA.

Coverage types to discuss

General liability

The SBA describes general liability as protection “against financial loss as the result of bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments.” (Same source.) For home care, ask how the policy treats injuries or property damage that happen in a client’s home, not just your office.

Professional liability

The SBA describes this as protection “against financial loss as a result of malpractice, errors, and negligence” for businesses that provide services. (Same source.) In home care, this is often the coverage tied to the care itself, such as a claim that a caregiver didn’t follow the care plan. Ask whether general and professional liability can be combined in one policy designed for home care, and whether it covers your service types.

Workers’ compensation

Caregiving is physical work involving lifting, transfers, and driving, so workers’ comp matters. Rules on who must be covered, and how, are set by your state, which is one more reason to ask your broker early. Premiums are usually based on payroll and job classification, so ask your broker how caregivers will be classified.

Commercial or hired and non-owned auto

If caregivers drive their own cars to visits, or drive clients to appointments, ask about hired and non-owned auto coverage. Personal auto policies may not cover business use. Also decide what auto insurance you’ll require caregivers to carry.

Employee dishonesty or third-party crime / fidelity bond

Caregivers work in clients’ homes, sometimes with access to money, cards, or valuables. A third-party crime policy or fidelity bond may cover losses to clients from employee theft. Some states or payers require a surety bond as a licensing or enrollment condition. Surety bonds and fidelity coverage are different products, so ask your broker to explain both and tell you whether your state or payers require either one.

Abuse and molestation coverage

Some liability policies exclude abuse claims unless coverage is added. Ask directly whether it’s included, excluded, or available.

Cyber liability

You’ll hold client health and personal information, plus employee records. Ask about coverage for data breaches, notification costs, and ransomware, especially if you use cloud scheduling or EVV software.

Employment practices liability (EPLI)

This covers claims such as wrongful termination, discrimination, or harassment. It becomes more relevant as your team grows.

Commercial property / business owner’s policy

If you lease an office with equipment, ask about property coverage or a business owner’s policy (BOP). The SBA notes a BOP “combines all of the typical coverage options into one bundle.” (Same source.) Check whether a BOP is available for home care, since some carriers treat care services separately.

Umbrella coverage

An umbrella policy adds limits above your primary policies. Contracts sometimes require higher limits than a primary policy offers.

Questions to ask your broker

1. Do you work with other home care or home health agencies in this state?
2. Which coverages and minimum limits do my license, Medicaid enrollment, and likely contracts require?
3. Is this policy written on an occurrence or claims-made basis? If claims-made, what happens when I switch carriers?
4. Are there exclusions for abuse, medication assistance, transportation, or specific client populations?
5. How are caregivers classified for workers’ comp, and how is the premium audited?
6. Does the policy cover caregivers when they drive their own cars for work?
7. Can you name additional insureds (for example, a managed care plan or landlord) when a contract requires it?
8. What documents do you need from me, such as policies, training records, and hiring procedures?
9. How quickly can you issue a certificate of insurance when a payer or partner asks for one?

Put it in writing

Keep a simple insurance log with each policy, carrier, policy number, limits, renewal date, and which contracts require it. Payers and partners may ask for certificates at short notice, and renewals are easy to miss in a busy first year.

Mistakes to avoid

• Buying a generic small-business policy that excludes care services
• Assuming caregivers’ personal auto insurance covers work driving
• Missing an abuse exclusion in the fine print
• Waiting until your license application asks for proof of coverage

The “questions to ask” worksheet in our Startup Pack includes a section for your insurance broker alongside your attorney and CPA. It’s a planning aid, not insurance advice.