What Licenses and Certifications Do You Need for a Home Health Care Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Dec 3, 2025
- 2 min read
Starting a home health care business requires meeting specific licensing, certification, and compliance standards to operate legally and safely. Requirements vary by state, but this guide outlines the core credentials most agencies need—plus the insurance policies that protect your business as it grows.
State Licensing Requirements
Most states require home health care businesses to obtain an official Home Care Agency License through the state’s Department of Health or Human Services. This license typically covers:
In-home personal care
Non-medical assistance
Basic daily living support
If you plan to offer skilled nursing, wound care, therapy services, or medication administration, you’ll likely need a Home Health License, which has stricter requirements including:
RN or LPN supervision
Clinical policies and procedures
A medical director in some states
Business Registration
All home health care businesses must register as a legal entity, usually as:
LLC
Corporation
Sole proprietorship
You may also need:
Employer Identification Number (EIN)
State tax ID
Local business permits
Required Certifications for Staff
Certified Home Health Aide (CHHA)
If your business provides hands-on care, most states require aides to hold a:
CHHA certification or
Certified Nursing Assistant (CNA) credential
Training typically includes:
Basic care instruction
Safety and emergency procedures
Hands-on clinical experience
Licensed Nursing Staff
If you offer medical services, you must hire or contract:
Registered Nurses (RNs)
Licensed Practical Nurses (LPNs)
Physical, occupational, or speech therapists
Many states require all field staff to maintain active CPR and First Aid certifications through organizations like the American Red Cross or American Heart Association.
Compliance Requirements
Background Checks and Fingerprinting
Most states require:
FBI background checks
State-level checks
Abuse registry screenings
HIPAA Compliance
If your agency handles medical information, you must comply with HIPAA privacy and security regulations, including:
Secure recordkeeping
Staff confidentiality training
Written policies and procedures
Policies and Procedures Manual
This required manual outlines:
Client rights
Care procedures
Emergency plans
Infection control standards
Insurance Requirements for a Home Health Care Business
While not always legally required, most states, referral programs, and healthcare partners will not work with you unless you carry proper insurance.
General Liability Insurance – Covers client injuries or property damage
Professional Liability Insurance – Protects against negligence claims in providing care
Workers’ Compensation Insurance – Required if you have employees, covers on-the-job injuries
Property Insurance – Protects office equipment and business property
Commercial Auto Insurance – Covers vehicles used for transporting aides or clients
Final Thoughts
Launching a home health care business requires the right mix of licenses, certifications, compliance protocols, and insurance protection. Ensuring your agency is legally compliant not only keeps you safe from penalties but also builds trust with clients, families, and referral partners.
For guidance on protecting your home health care business with the right coverage, contact Wexford Insurance for a customized quote today.
