Are you wondering what insurance policies are needed for non medical home care business? If YES, here are insurance policies you need to take note of in 2021.  Residents of non-medical home care facilities are people who don’t have a need for medical care; it is basically designed for elderly people, and people with one form of disability or the other.

Non-medical home care facilities are not expected to accommodate people with medical conditions such as autism, intellectual disability, chronic or long-term mental/psychiatric disorder, or physical or even multiple disabilities et al.

Some non-medical home care facilities are funded as transitional homes to prepare for independent living (in an apartment or return to family or marriage and employment), and others are viewed as permanent community homes. Society may prevent people with significant needs from living in local communities.

Since every facility is different, non-medical home care facilities have difficult insurance risks to cover. These properties have serious underwriting risks from theft, damage, fire, and other problems. For instance, the residents can come in and go freely so it is difficult to know who should be in the home and who should not be there. Also, the residents are often subject to unpredictable behavior. That makes any insurer nervous.

In addition, the number of years of the Non-medical home care facility is important. Non-medical home care facilities with a longer track record of safety and security are more likely to continue on that path. Lastly, the general features of the building including its age, type of construction, materials, etc. factor into the risk of the property.

Types of Insurance is Needed for a Non Medical Home Business

  1. General Liability Protects

The truth remains that non-medical home care facilities work to make the world a better place. However, constant interaction with the community opens the business to liability. General liability insurance safeguards against lawsuits filed by visitors, clients, and other individuals outside your organization. This policy offers liability coverage related to:

  • Client and visitor injuries
  • Client and visitor property damage
  • Slander, libel, and copyright infringement
  1. Commercial Auto Insurance

Commercial auto insurance is known to cover legal bills, medical expenses, and property damage if a business vehicle or ambulance is involved in an accident. Every time your employees or volunteers get on the road; your organization is prone to high risks. Commercial auto insurance shields your non – medical home care from the costs of an auto accident, which can skyrocket if someone is injured.

It is required in most states for business-owned vehicles. It helps to cover the cost of potential lawsuits, property damage, medical bills, and other expenses arising from an accident involving your business-owned vehicle and ambulances. It also pays for theft and vehicle damage caused by natural disasters and vandalism

  1. Professional Liability Insurance

An accusation of negligence or a simple mistake at your home care could lead to a financially draining legal battle. Note that when a disabled client sues your organization, professional liability insurance can pay for court costs, judgments, and other legal expenses.

The main reason for purchasing this insurance is that a typical general liability insurance policy usually only applies to cases of personal injury, property damage, bodily injury, and advertising injury. The types of claims covered by your professional liability policy may include:

  • Negligence
  • Misrepresentation
  • Fair dealing
  • Violation of good faith
  • Inaccurate advice
  • Failure to meet industry standards
  1. Workers’ Compensation Insurance

Even though general liability insurance protects your business from accidents, it usually doesn’t cover damages that you had the power to avoid. It simply means that a lot of workplace injuries are not covered. In a worst-case scenario, an employee could litigate for the injuries they incurred in the workplace, and that is where workers comp insurance is the most useful.

Note that if an employee ends up with medical expenses from the workplace accident, workers’ compensation insurance can pay them for the time they were out of work, as well as their medical costs. In return, the employee forgoes the right to sue the employer.

Have it in mind that this is a mutually beneficial solution, and it is usually the easiest and quickest one as well. Without workers comp in place, you might end up with a month-long legal battle that will drain the wallets of both business and defendant.

  1. Directors And Officers Insurance

Directors’ and officers’ insurance protects board members and officers against legal expenses if they are sued for a decision they made on behalf of the non – medical home care facility that led to a financial loss. Your advisory board or board of directors are known to oversee the non – medical home care’s strategies, use of funds, and other major organizational activities. Without a safeguard, they could be held personally responsible for a lawsuit.

Directors’ and officers’ insurance (D&O) can cover the legal expenses related to their decisions, allowing them to go about their duties without fear of personal liability. Some individuals may require you to have this policy in place before they will agree to join your organization. This policy offers coverage related to:

  • Accusations of mismanaged funds
  • Failure to meet regulatory standards
  • Failure to perform official duties
  1. Business Owner’s Policy

A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately. If you own your group home’s building or office equipment, a business owner’s policy is your best line of defense. A BOP bundles commercial property insurance and general liability insurance under one plan, covering both property damage and client injuries. This policy protects against:

  • Damage to business property
  • Client injuries and property damage
  • Advertising injuries
  • Forced closure
  1. Cyber Liability Insurance

Since most of your facility’s data is saved on computers and cloud storage services, there is a risk of cybercrime and data loss. Cyber liability is a type of non-medical home care facility insurance coverage that covers your liability in case of a data breach in which the facility’s residents’ personal information such as credit card numbers or social security numbers is exposed or stolen by hackers or other criminals.

To limit the risk of civil litigation and other penalties due to a data loss or a deliberate intrusion into your facility’s electronic network, invest in cyber liability. This non – medical home care facility insurance policy may cover losses caused by:

  • Cyber extortion
  • Stolen personal health information
  • Stolen personally identifiable information
  • Intellectual property, etc.

In Conclusion

You don’t want to be underinsured, but you also want to avoid buying unnecessary coverage. If a basic insurance policy is not enough to cover your risks, don’t hesitate to add endorsements or look for broader coverage. As long as you can afford it, the highest amount of insurance coverage available is the best option when dealing with a sensitive business such as non – medical home care.

Remember that the information provided on your insurance application tells your agent, broker, or underwriter how to best cover your specific risks, so you want to be as accurate and honest as possible. It does not only help protect your business, but it may also prevent you from being denied coverage if you file a claim.

Solomon. O'Chucks