Insurance Cost for a Home Health Agency Business
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Running a home health agency involves risks—from client care incidents to employee injuries—making insurance not just important but essential. Understanding the cost of insurance for a home health agency helps new and established agencies plan their budgets and ensure proper protection.
What Influences Home Health Agency Insurance Costs?
Several factors impact the cost of your insurance:
Size of Your Agency: The number of employees and caregivers directly affects premiums. More staff means higher risk exposure, which may increase costs.
Type of Services Offered: Agencies providing specialized medical care or high-risk services may face higher premiums than those offering companion or non-medical care.
Location: State regulations and local requirements influence policy costs. For example, workers’ compensation laws vary by state.
Coverage Limits and Deductibles: Higher coverage limits protect your agency more comprehensively but may raise premiums. Similarly, lower deductibles typically result in higher costs.
Claims History: Agencies with a history of insurance claims often pay higher premiums due to perceived risk.
Average Costs
While costs vary widely, small home health agencies may pay anywhere from $1,000 to $5,000 annually for basic general liability and professional liability coverage. Agencies with employees, vehicles, or specialized care services may see premiums in the $5,000–$15,000 range. Adding workers’ compensation, cyber liability, and property insurance can further increase the total annual cost.
How to Save on Insurance
Bundle policies for discounts
Implement strong safety protocols
Train staff thoroughly to reduce claims
Work with an experienced provider familiar with home health agencies
Partnering with a trusted insurance provider like Wexford Insurance can help your agency compare quotes, find the best coverage for your needs, and ensure compliance with state regulations—all while controlling costs.
Why Accurate Quotes Matter
Getting a tailored insurance quote ensures your agency is not underinsured or overpaying. Coverage gaps can leave your agency exposed to liability, while overpaying can strain your budget unnecessarily.
FAQs
What does home health business insurance cover for caregiver agencies?
What should I prepare before requesting a home care aide business insurance quote?
Why do home health businesses get insurance claims denied?
