Safeguarding Home Healthcare Providers: The Power of Liability Coverage

Medical and non-medical home healthcare providers, such as home health aides and nurses, face unique challenges. First, they have to deal with the usual business operating risks. Second, they must consider the risk of negligence and malpractice during care delivery. Thus, these individuals and businesses need general and professional liability coverage. Here’s a detailed guide on the type of coverage a home healthcare agency might need.

What Do General and Professional Liability Insurance Plans Cover?

A general liability insurance policy covers businesses against property damage and bodily injury claims. It provides coverage for the following:

Bodily Injury: It is any physical injury your business operations cause to someone. Suppose an elderly patient slips and falls while you provide physiotherapy. General liability insurance will cover legal fees and medical expenses.
Property Damage: It includes any damage your business operations cause to the patient’s property. Examples include broken or damaged equipment, such as a wheelchair.
Personal Injury: It includes claims of libel, defamation, and slander. An example would be if a patient accused you of false statements or malicious remarks. Meanwhile, professional liability insurance or errors and omissions insurance covers you against claims of errors, omissions, and negligence. It kicks in during the following situations.
Breach of Contract: If you fail to deliver the medical service per the contract, the patient may sue you. Professional liability insurance covers the fee for legal processes or damages.
Professional Negligence: It includes any mistakes or negligent behavior during patient care. A typical example is wrong medicine administration.

Which Insurance Do Home Healthcare Providers Need?

Whether you’re a home healthcare agency, a registered nurse, a home health aide, or a certified nursing assistant, you may need one or more of these insurance coverages.

General Liability Insurance

General liability insurance is a must for both home healthcare companies and individuals. It protects healthcare providers in the following cases:

Accidental bodily injuries
Advertising injuries
Damage to patient property

It’s best to couple this insurance with property insurance for optimal protection. Property insurance covers any medical equipment or devices that you store at home.

Business Owner’s Policy

A business owner’s policy bundles general liability and commercial property insurance in one plan. It’s a cost-effective option for in-home care providers. Such a policy will cover you in cases of:

Business property damage
Theft
Client property damage
Slip and fall accidents

Professional Liability Insurance

All healthcare providers should have medical malpractice insurance. The rule applies to in-home caregivers too.

The insurance covers all oversights and mistakes during patient care. It also protects you from accusations of negligence and claims of improper medical treatment.

Workers’ Compensation Insurance

Home healthcare companies that hire nurses should also get workers’ compensation insurance. It covers the following for a company’s employees:

Medical Expenses: If an employee, such as a nurse, gets injured or sick on the job, the policy will cover their medical treatment. It also covers rehabilitation, medication, and hospitalization costs.
Wage Replacement: The policy will also cover a portion of the employee’s lost wages if their injury or illness keeps them from working.
Death Benefits: If an employee dies on duty or due to a work-related accident, the workers’ compensation policy will provide benefits to their dependents. Some examples of benefits include ongoing financial support and funeral expenses.

Commercial Auto Insurance

Home healthcare businesses or caregivers use vehicles to commute to and from patients’ homes. All states, except Virginia and New Hampshire, require commercial vehicles to be insured.

Commercial auto insurance covers accident costs associated with a business vehicle. The policy will cover the damage your vehicle causes to another vehicle during the accident.

If any medical bills arise from the accident, the policy will also pay for those. Most commercial auto insurance plans also cover vandalism and vehicle theft.

Getting a Non-Owned Auto coverage is also a good option. This will provide cover for driving clients to other places, like grocery stores or doctor’s appointments. In such cases, even if the business owner doesn’t own a car, but only drives, the plan will cover against any accident.

Cyber Liability Insurance

Many home healthcare businesses keep patient details in cloud-based or online databases. Hackers can target such data and steal sensitive information like Social Security numbers, addresses, and credit card details.

Cyber liability insurance can protect home healthcare providers in this regard. The policy will cover the following:

Lawsuits pertaining to data breaches
Fraud monitoring costs
Costs associated with alerting affected clients

How to Determine Which Insurance You Need?

You’ll need general and professional liability insurance if you’re an individual in-home caregiver. Also, get auto insurance on your vehicle.

Meanwhile, home healthcare businesses should get workers’ compensation and business owners’ policy on top of the above-mentioned policies.

If unsure, it’s best to consult a broker or an agent. They can help you determine which policies you need. They’ll also inform you about your state’s minimum insurance requirements.

You can usually bundle several coverages to create a single plan. It helps lower insurance costs and makes premiums manageable.

Why Is It Important to Be Insured?

General and professional liability insurance are must-haves for home healthcare providers. Here’s why.

Liability Protection

Most in-home healthcare providers work in a vulnerable and highly sensitive environment. You work with individuals with complex medical needs.
Any oversight or mistake on your part can lead to serious claims. Insurance can protect you from the financial burden of a liability claim or a lawsuit.

Professional Image

Working as a home healthcare provider requires you to have a good reputation. Showing patients that you’re insured helps build trust. It also shows them that you’re professional and serious about their safety.

Compliance

Many regulatory bodies and state governments have strict laws for medical care. Home healthcare providers must comply with these laws to avoid legal penalties.
In some states, you might not be able to establish a home healthcare business without the required insurance coverage.

Conclusion

General and professional liability insurance can provide financial protection to home healthcare providers. Plus, they help you maintain a positive reputation. These policies also save you in bodily injury, property damage, and negligence cases.

Additionally, in-home healthcare businesses should get the required business policies, including workers’ compensation and business owner’s insurance. These policies allow home healthcare providers to offer their services to patients without worrying about liability claims and legal penalties.

POSTED ON: Policy Insights

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