How to Choose the Right Insurance Limits for a Home Health Agency
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Selecting the right insurance limits is one of the most critical decisions for a home health agency. Insurance limits define the maximum amount an insurer will pay for a covered claim, and choosing inadequate limits can leave your agency exposed to financial loss, legal liability, and reputational damage.
Why Insurance Limits Matter
Home health agencies face unique risks, including:
Client injuries or accidents during in-home visits
Employee injuries or workplace incidents
Professional liability claims due to errors or omissions in care
Property damage to office equipment or client homes
Having the appropriate limits ensures that your agency can handle large claims without jeopardizing its financial stability.
Types of Insurance Limits to Consider
General Liability Limits: General liability insurance covers bodily injury, property damage, and personal injury. Consider limits that reflect your agency’s exposure—typically ranging from $1 million per occurrence to $2 million aggregate.
Professional Liability (Errors & Omissions) Limits: Professional liability protects against claims of negligence or mistakes in patient care. Higher limits may be necessary if your agency provides skilled nursing, medication administration, or other high-risk services.
Workers’ Compensation: Limits for workers’ compensation are usually mandated by state law and cover medical treatment, lost wages, and rehabilitation for employees injured on the job.
Business Auto and Property Coverage: Agencies using vehicles for client transportation or maintaining expensive medical equipment should choose limits that protect both the vehicle and property values.
How to Determine the Right Limits
Assess Your Risks: Evaluate services, client types, and employee roles to estimate potential claim amounts.
Review State Requirements: Some states mandate minimum coverage limits for liability and workers’ compensation.
Consult with an Expert: Insurance professionals like Wexford Insurance can help assess your agency’s needs and recommend appropriate limits.
Balance Cost and Protection: Higher limits offer more protection but increase premiums. Find a balance that safeguards your agency without straining your budget.
Benefits of Proper Coverage
Choosing appropriate insurance limits gives your agency:
Protection from catastrophic claims
Compliance with state and regulatory requirements
Peace of mind for staff, clients, and stakeholders
Partnering with Wexford Insurance ensures your agency has customized coverage tailored to your risk profile, services, and state requirements, helping prevent underinsurance and potential claim denials.
FAQs
What do workers’ comp insurance policies cover for home care aide businesses?
Do home health agencies need cyber insurance for handling patient data?
What’s the difference between bonding and insurance for home health businesses, and what’s required?
