Home Health Aide Business Insurance

Even though medical malpractice insurance, sometimes called medical professional liability insurance, isn't mandated by every state, it's often required by government contracts, healthcare networks, and hospitals or other healthcare facilities.

Because your patients depend on your knowledge, skills, and professional services, maintaining a standard of care is imperative. If you don't provide the same level of care as other providers with a similar amount of knowledge and training, you could be accused of professional negligence or malpractice.

Incorporating malpractice coverage into your risk management plan is crucial, even when not required, as medical malpractice claims are some of the most expensive and well-known cases for professional negligence.

While a home health aide and caregiver seem similar at surface level, there are a variety of differences between their duties, trainings, and certifications.

An HHA often provides many services that a caregiver performs, such as patient personal care, however they're able to offer medical assistance as well. Examples include setting up IVs, administering shots, and drawing blood for lab work. This duty is usually backed by medical certification and specialized training.

Caregivers aren't required to undertake specialist training or qualifications, but often do pursue them to improve their quality of care and capabilities. On the other hand, home health providers must complete hands-on training and pass an exam that's typically administered by a registered nurse (RN).

Depending on their location and services provided, caregivers and home health aides may need different types of insurance coverage (such as caregiver bonds, if required by a client or health network). HHAs and caregivers should check with a licensed insurance agent to ensure that they have the right coverage for their business needs.

There are two types of policies: occurrence and claims-made. Not only do they differ in coverage, but in cost as well.

It's important to know the difference between the two policies before you purchase your coverage.

Claims-made policies provide coverage only during the policy period. If a claim is filed during while the policy is active, your insurer should provide coverage. If you cancel your policy, or it expires, any claims filed after the expiration date or even while the policy was active won't be covered.

One example is medical malpractice insurance. This policy is usually offered as claims-made due to the high associated expenses, however it may have lower average premiums compared to an occurrence-based policy. 

Occurrence-based policies will protect you and your business as long as you were insured when the incident occurred. Occurrence coverage usually accommodates for "long-tail" events or situations where lawsuits or claims don't always happen right away. It's important to note occurrence-based policies usually have an aggregate limit, as well as a per occurrence limit or how much an insurer will pay per claim.

For example, should you get into a car accident while working and your policy was active, but you don't notice any ailments or injuries until after your policy has expired, you could still file a claim.

The policy limits for each type of policy will differ. When purchasing your policy, you'll need to decide the aggregate limit or amount of protection you need. With occurrence policies, this aggregate limit will reset every year when your policy renews.

However, with claims-made policies, your coverage must last for the length of your policy. Should you be sued for the full amount of protection you have in the first year, you'll need to increase your policy limit the following year.

You can compare professional liability insurance and general liability insurance to better see the differences between these two types of policies.