insurance for home health care organizations

insurance for home health care organizations

Westwood will work with you to ensure your home health care clients have the best insurance coverage for every threat they could face.

assessing their needs

As the home healthcare industry continues to grow, commercial insurance agents must be cognizant of several key challenges these organizations face. Understanding these challenges can help agents provide tailored insurance solutions to mitigate potential risks. Here are some of the primary challenges:

  1. Regulatory Compliance: Home healthcare organizations face a complex regulatory environment. They must comply with various laws and regulations, including HIPAA, the Affordable Care Act, and state-specific licensing rules. Failure to comply can lead to significant penalties and liability exposure.

  2. Workforce Issues: Staffing is a significant concern in the home healthcare industry. There is a high turnover rate, and organizations often struggle with recruitment and retention. This can lead to inconsistencies in care and potential liability issues. Additionally, staff often work independently in patients’ homes, which can make it difficult to monitor performance and compliance with safety protocols.

  3. Patient Safety and Quality of Care: Ensuring the safety and quality of care in a home setting can be challenging. Risk exposures include falls, medication errors, and failure to monitor a patient’s condition adequately.

  4. Workers’ Safety: Home healthcare employees face unique workplace hazards. They may suffer injuries from lifting or moving patients, encounter aggressive pets, or work in unsafe home environments. In addition, they often work alone, increasing the risk of assault or other forms of violence.

  5. Cybersecurity: Home healthcare organizations handle sensitive patient data, making them targets for cyberattacks. As more technology is integrated into home healthcare, the risk of data breaches increases.

  6. Reimbursement Changes: Fluctuating reimbursement rates from Medicare, Medicaid, and private insurance can impact a home healthcare organization’s bottom line and ability to provide services.

For commercial insurance agents, understanding these challenges is crucial to providing effective risk management solutions. Agents can assist with various insurance products, including professional liability insurance, workers’ compensation, cybersecurity insurance, and regulatory liability insurance. They can also provide guidance on risk management strategies to help home healthcare organizations navigate these challenges successfully.

what specific insurance do they need?

Home healthcare organizations require a variety of insurance policies to protect against the unique risks they face. Some of the most crucial insurance coverages they need include:

  1. Professional Liability Insurance (also known as Malpractice Insurance or Errors and Omissions Insurance): This covers lawsuits related to the professional services a home healthcare organization provides. For example, if a patient alleges negligence, such as a failure to administer medication correctly, professional liability insurance could cover the defense costs and any settlements or judgments.
  2. General Liability Insurance: This policy covers common business risks, such as patient injuries from a slip and fall at the office. It also covers property damage the business may cause while providing services at a patient’s home.
  3. Workers’ Compensation Insurance: This is mandatory in most states for businesses with employees. It covers medical expenses and a portion of lost wages if an employee is injured or becomes ill due to their work. In the home healthcare industry, common risks include back injuries from lifting patients and exposure to illnesses.
  4. Commercial Auto Insurance: This is necessary if the organization owns vehicles that employees use to travel to patients’ homes. Even if employees use their own vehicles, the organization could be liable if the employee is in an accident while working, making non-owned auto liability coverage essential.
  5. Cyber Liability Insurance: Given the amount of personal and medical data home healthcare organizations handle, they’re at risk of cyberattacks and data breaches. Cyber liability insurance can cover the costs related to a breach, such as notification costs, credit monitoring services, public relations efforts, and any fines or penalties.
  6. Employment Practices Liability Insurance (EPLI): This covers lawsuits related to employment practices, such as claims of discrimination, harassment, or wrongful termination.
  7. Directors and Officers Liability Insurance (D&O): This protects the personal assets of an organization’s directors and officers. They could be personally sued for decisions they make in their role that negatively affect the organization.
  8. Regulatory Billing Errors & Omissions Insurance: This specific coverage is designed to protect healthcare providers from regulatory fines, penalties, and defense costs associated with billing errors investigations.

These are some of the main types of insurance that home healthcare organizations typically need. The exact mix of policies and coverage limits will depend on several factors, including the size of the organization, the number of employees, the types of services provided, and the geographic area in which it operates. Working with a knowledgeable commercial insurance agent who understands the home healthcare industry can help these organizations get the coverage they need.

advice for commercial agents approaching home health care organizations

As a commercial insurance agent approaching home healthcare organizations, it’s crucial to understand the unique risks and challenges these organizations face. Familiarize yourself with the operational intricacies of the home healthcare industry, and stay abreast of regulatory changes and industry trends. Knowledge of specifics such as staffing challenges, the growing use of technology in patient care, and the complex regulatory landscape will help you offer the most relevant advice and coverage options.

Your approach should emphasize risk management as much as insurance coverage. Effective risk management can help reduce claims, which in turn can lower insurance premiums and contribute to the organization’s overall financial health. Offer guidance on strategies for reducing common risks, such as employee safety training to minimize on-the-job injuries, cybersecurity measures to prevent data breaches, and best practices for regulatory compliance.

Develop a comprehensive understanding of the various insurance products relevant to home healthcare organizations, including professional liability, workers’ compensation, commercial auto, cyber liability, and regulatory liability insurance. Be ready to explain how each type of coverage can protect the organization and why it is a worthwhile investment.

Finally, build strong relationships with your clients. Home healthcare organizations need an insurance agent who is not just a salesperson, but a trusted advisor. Regularly check in with your clients to update coverages as their needs change, respond promptly and empathetically to any concerns, and be proactive in helping them manage their risks. By becoming a trusted partner, you can help these organizations protect their employees, their patients, and their bottom line.

Contact Michael Richards now

Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:

Michael Richards

sourcing the best insurance for home health care organizations is essential in today’s challenging climate


General Liability Insurance

General Liability insurance cover medical expenses and attorney fees which result from bodily injuries and property damage that your company or organization could be legally responsible for.

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Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance (E&O) and medical malpractice insurance, protects your business against claims of negligence, malpractice, errors, and omissions which may have occurred during the fulfillment of a professional service.

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Telemedicine Malpractice Insurance

telemedicine malpractice insurance—also known as digital health insurance or eHealth insurance—has become increasingly vital for healthcare providers. to  protect them against claims of negligence, malpractice, errors, and omissions which may be the result of the limitations of webcam quality or the inability of a patient to properly photograph a condition. It can also cover cyber liability, such as remote controlled medical devices being hacked.

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Directors and Officers Liability (D&O) insurance

D&O insurance (Directors and officers liability insurance), shields the personal assets of company directors and officers, and where necessary, their spouses, from claims which could arise as a result of the decisions they made and actions they took within the scope of their regular duties.

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Cyber liability insurance

Cyber liability insurance covers the financial costs associated with a breach of your cyber security, such as a ransomware attack. It also covers first party costs including event management, data restoration, financial costs to third parties, network interruption, and cyber extortion.

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HNO Insurance

HNOA, (hired non-owned auto insurance) is designed for organizations who regularly hire vehicles or require employees to use their own vehicles in the course of their work. In the case of an accident where your employee was liable, it could cover physical damage to that other person’s vehicle, medical expenses, the cost of hiring an attorney to defend your business.

Workers’ Comp. Insurance

Workers’ compensation insurance covers your employees for workplace injuries or illness. It provides them with medical and wage benefits.

This coverage is mandated by each state, with the wage and medical benefits varying from state to state. Workers compensation also protects business owners from civil suits by workers who become injured on the job.

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Employment Practices Liability

Employment practices liability insurance (EPL insurance or EPLI), covers employers (PDF) against claims made by employees for:

  • Discrimination (based on sex, race, age or disability, for example)
  • Wrongful termination
  • Harassment
  • Failure to promote and other employment-related issues
Sexual Abuse & Molestation (SAM)

Sexual Abuse and Molestation Insurance provides coverage for organizations against claims arising from alleged sexual misconduct or molestation by an employee or other representative of the organization. 

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Environmental Liability insurance

Environmental Liability insurance is liability insurance specifically designed to protect environmental liabilities. This is a specialized form of general, commercial liability insurance that provides financial protection against litigation and clean-up costs resulting from claims of injury or damage caused by pollution, contamination or hazardous waste disposals. 

Commercial Property Insurance

Commercial property insurance is a fundamental component of risk management for healthcare and senior living providers. It is designed to protect the organization’s physical assets, such as buildings, medical equipment, furniture, and supplies, from financial losses due to damage or theft.

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Crime Insurance

Crime Insurance covers the insured party a reimbursement if their property is damaged due to a crime. Crime Insurance usually has a huge range of options and comes in different forms. It can be either a rider that can be attached to the existing insurance policy, or it is available as a completely separate product.

Commercial Auto Insurance

Commercial auto insurance is a crucial aspect of risk management for healthcare and senior living providers. It offers vital financial protection against vehicle-related incidents and is often required by law.

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Fully/Partially Funded insurance

Partially Funded insurance gives facilities the opportunity to pay a set premium for, and then in turn is  partially covered for specific risks.

Fully Funded Insurance allows facilities to pay premiums to have coverage against all risks. In return, if they are unfortunate enough to incur any of the covered loss or injury, they are reimbursed their insurance policy amount.

Excess and umbrella coverage

Excess coverage provides an additional layer of protection over and above what an underlying policy provides. It applies to a single policy only.

An umbrella policy on the other hand, provides additional liability coverage over and above what is provided by a number of underlying policies.

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we've got you covered

General Liability Insurance

Protecting healthcare organizations against increasingly crippling litigation.

Professional Liability Insurance

Protecting medical professionals against increasingly crippling litigation.

Medical Malpractice Insurance

Protecting medical professionals against increasingly crippling litigation.

Cyber Liability Insurance

Protecting healthcare organizations & professionals against cyber attacks.

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insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

insurance for physicians

The different types of insurance for physicians includes medical malpractice insurance, professional liability insurance, errors and omissions insurance, an umbrella policy, and professional indemnity. As a physician, you should have access to all of these types of insurance.

traditional insurance products

Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.

    Insurance products at Westwood Insurance Group

    You can find more information on the Insurance Products main page.

    If you have any questions on the different policies, check out our Insurance FAQ's

    alternative structures

    Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:

    If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.