How much does insurance cost for caregivers?
The cost of caregiver insurance depends on the types of policies you choose, the size of your business, location, claims history, number of employees, and other factors. Save money on small business insurance by comparing quotes from different providers with Insureon.
Average caregiver insurance costs for top policies
Here are the top insurance policies purchased by personal care aides and their average monthly costs:
- General liability insurance: $29 per month
- Professional liability / medical malpractice insurance: $48 per month
- Workers' compensation insurance: $136 per month
- Commercial auto insurance: $301 per month
- Cyber insurance: $79 per month
- Fidelity bonds: $17 per month
Our figures are sourced from the median cost of policies for caregivers who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
Personal care aides pay an average of $29 per month, or $350 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:
Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $3 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.
Professional liability / medical malpractice insurance
Non-medical home care businesses pay an average medical malpractice insurance premium of $48 per month, or $571 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:
Insurance premium: $48 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.
Workers’ compensation insurance
The average cost of workers’ compensation insurance is $136 per month, or $1,637 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.
Commercial auto insurance
Healthcare professionals, including personal care aides, pay an average of $301 per month, or $3,608 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.
Cyber insurance
Medical professionals, such as personal care aides, spend an average of $79 per month, or $954 annually, 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.
Fidelity bonds
The average cost of a fidelity bond is $17 per month, or $208 annually, for non-medical home healthcare professionals. 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.
The cost of a fidelity bond is typically a small percentage of the bond amount.
How are caregiver insurance costs calculated?
Non-medical personal care aide business insurance costs are determined by several factors. While underwriting your policy, insurance companies will consider the following when calculating insurance rates:
- Type of caregiving services offered: Personal care aide businesses may see higher premiums if they offer specialized support, such as transportation or personal hygiene assistance, compared to those that only provide companionship or light housekeeping.
- Business property and equipment: Caregivers who operate with higher-value equipment or tools are likely to see more expensive premiums. Also, any items that are frequently used could cost more to insure than items that are used less often.
- Annual revenue and payroll: The more your home health aide business makes in a year and the more you pay your employees, the higher your premium will cost. That’s because increased revenue and payroll often indicate more clients and greater exposure to possible claims.
- Business size and structure: A solo caregiver who works privately will probably have less expensive premiums than a multi-employee agency with many personal care aides.
- Location: If your home health aide agency operates in an area that is more prone to natural disasters, increased foot traffic, or high crime rates, you may have to pay higher insurance costs than a caregiver located in an area where these factors are less present.
- Client volume and age: The more clients you have, the more likely your premiums will increase since more clients offer higher chances of a claim being made. In addition, if your clients are elderly or have mobility limitations, insurers may increase your premium costs since they are higher-risk.
- Claims history: A personal care aide business firm with a lengthy list of previous insurance claims will likely pay more for insurance than one with no claims history.
- Types of coverage: For professional liability coverage, the type of policy you choose can influence your premium. Most professional liability policies for caregivers are written on a claims-made basis, which generally start with lower premiums that then increase during the first few years of continuous coverage. While occurrence-based policies are less common for professional liability insurance, they may be available for other types of business insurance.
- Number of employees: The more employees and caregivers your business has, the greater the potential for mistakes or errors, property damage, and liability claims.
- Coverage limits and deductibles: Caregiving businesses with higher coverage limits and lower deductibles on their insurance policies will typically see increased premium costs, while lower limits and a higher deductible can help keep their rates lower.
How do I get non-medical home healthcare insurance?
Insureon’s licensed agents work with leading U.S. insurance carriers to find the right types of policies for your non-medical home healthcare business, whether you’re a self-employed solo practitioner or run a small medical practice with employees.
If you decide to buy a policy, you’ll work with an account manager who specializes in the insurance needs for personal care aides and caregivers.
For medical malpractice coverage, you can contact our dedicated insurance agent by emailing [email protected] or calling (312) 854-2919. They can help you find insurance quotes for malpractice and other common policies that your practice needs.
You can buy other insurance policies online with Insureon in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. insurance companies.
- Select a policy and pay the premium to begin coverage.
Our licensed agents are available to answer questions about your risks, state requirements, and how to save money on your non-medical home care business insurance. Most small business owners can get a certificate of insurance (COI) within 24 hours of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the caregiving field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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