How much does insurance cost for caregivers?

Personal care aides pay an average of $30 per month, or $365 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at non-medical home healthcare agencies and other healthcare facilities, such as an elderly patient who slips on a wet floor and suffers a bodily injury, or accidental damage to a patient's property.

For example, if a caregiver accidentally drops and breaks a client's smartphone while providing in-home care, general liability insurance coverage would pay for the repair costs or legal fees if the client sues over property damage.

It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for personal care aides who buy from Insureon:

Premium: $30 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all claims during the policy period, typically one year.

Insureon’s licensed agents typically recommend a business owner’s policy (BOP), which combines general liability coverage with commercial property insurance at a discount to protect your healthcare equipment and other business property.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the size of your business, the types of home healthcare services you provide, your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Non-medical home care businesses pay an average medical malpractice insurance premium of $12 per month, or $139 annually. This policy is also called professional liability insurance.

Home healthcare aides often need this coverage to comply with state laws, or to work at a specific client's home or other facility, like a nursing home. Some caregivers may need proof of malpractice insurance to sign a contract with a home healthcare agency.

A professional liability insurance policy covers malpractice lawsuits resulting from an error, misdiagnosis, or failure to meet a standard of care. Even frivolous medical liability claims are covered.

For instance, suppose a client's loved one accuses you or an employee of negligence. If they decide to sue your business, malpractice insurance would cover your legal defense costs, court-ordered judgment, or settlement, helping you to avoid financial loss.

Below is the average malpractice insurance policy for non-medical home healthcare providers who buy from Insureon:

Premium: $12 per month
Policy limits: $1 million per occurrence; $3 million aggregate

Because this is a claims-made policy, your coverage must be kept active to collect on a medical malpractice claim.

One of the biggest factors affecting the cost of malpractice insurance is the type of professional services you offer, such as telehealth. Other factors include your claims history and the liability limits you choose.

Learn more about how your premium is calculated and how to save money on your malpractice insurance premium.

The average cost of workers’ compensation insurance is $211 per month, or $2,535 annually, for personal care aides.

This policy covers medical expenses and lost wages related to workplace injuries. It usually includes employer's liability insurance to protect against lawsuits from injured workers.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all healthcare providers in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Healthcare professionals pay an average of $216 per month, or $2,589 per year, for commercial auto insurance.

This type of insurance pays for legal costs and medical bills if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a non-medical home healthcare business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose, the number and value of your vehicles, and the driving records of anyone permitted to drive.

Medical professionals spend an average of $79 per month, or $952 per year, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps your business recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber liability insurance policy is especially crucial for non-medical home healthcare businesses that store protected health information and other personally identifiable information (PII) belonging to their patients.

The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your home care agency.

The average cost of a fidelity bond is $12 per month for non-medical home healthcare professionals, or $138 annually. Some clients may require a bond before they will work with your home health agency.

Fidelity bonds reimburse your client if one of your employees commits fraud, theft, or forgery, including illegal electronic funds transfer. This amount must be paid back to the company that issued the bond.

The cost of a fidelity bond is typically a small percentage of the bond amount.