Home Health Liability Insurance: What You Should Know

The home healthcare sector continues to grow rapidly as aging populations, post-hospital recovery programs, and in-home medical care trends reshape the delivery of health services. But as home health agencies expand their reach, so too do the risks they face. Running a home health agency means balancing quality patient care with the realities of risk and liability. From professional negligence to employee injury, medication errors, and patient property damage, the exposures are significant, and traditional liability policies often leave gaps. 

That's where home health agency liability insurance comes in. For retail brokers, understanding the scope of this specialized coverage is key to helping clients protect both their caregivers and their businesses from costly claims. At Novatae, we partner exclusively with retail agents to deliver comprehensive liability programs for home health agencies and allied healthcare providers, ensuring your clients have the protection their operations demand. 

What Is Home Health Agency Liability Insurance?

Home health agency liability insurance is designed to safeguard organizations and their caregivers from claims arising from professional errors, omissions, or accidents while delivering care in a patient's home. Unlike general liability insurance, which may address only third-party bodily injury or property damage, home health liability coverage extends to the professional services themselves—the care, oversight, and decision-making that define the business. 

For example, if a caregiver administers an incorrect dosage of medication, or if a client alleges injury due to improper supervision during rehabilitation, these incidents could lead to professional liability claims. With dedicated coverage, agencies can protect themselves from the legal and financial fallout that could otherwise threaten their operations. 

Who Needs This Coverage?

Any organization providing skilled or unskilled medical or personal care services in a residential setting should carry home health liability insurance. This includes:

• Licensed home health agencies
• Hospice providers
• Visiting nurse associations
• Personal care and companion service agencies
• Staffing firms placing home healthcare professionals

Even small, community-based providers can face complex claims. The nature of in-home care, often unsupervised and intimate, means that a single incident can result in significant liability exposure. Retail brokers working with healthcare clients should ensure that their home health agency accounts have coverage that addresses both professional and general liability risks under one coordinated program. 

What Does Home Health Liability Insurance Cover?

Comprehensive home health agency liability insurance coverage typically includes:

• Professional Liability: Protection against claims of negligence, errors, or omissions in the delivery of care. 
• General Liability: Coverage for bodily injury, property damage, or personal injury occurring during care visits. 
• Abuse and Molestation Coverage: Protection against allegations of physical, sexual, or emotional abuse by caregivers.
• Medical Payments Coverage: For injuries to clients, even in the absence of proven fault. 
• Hired and Non-Owned Auto Liability: For agencies whose caregivers drive to client homes. 

Legal defense costs are often included, which is critical in a sector where allegations can arise even without substantiated fault. The cost of defending against a negligence claim can be financially devastating for small and mid-sized agencies, making robust liability coverage indispensable. 

Why It's More Important Than Ever

The post-pandemic landscape has accelerated the shift toward in-home medical care. As demand increases, home health agencies are hiring rapidly, often expanding into new regions or service types. With growth comes heightened regulatory scrutiny and a greater likelihood of claims involving patient care quality, privacy breaches, or credentialing errors. 

Furthermore, state and federal oversight continues to tighten. Agencies are increasingly required to demonstrate active risk management and liability coverage to maintain contracts with hospitals, Medicare programs, and private payers. Without the proper insurance in place, agencies risk losing these partnerships or failing to meet contractual obligations. 

For brokers, understanding these evolving regulatory and risk dynamics is essential to advising clients effectively, and to ensuring they maintain compliance while protecting their business continuity.

The Value to Clients (And to Brokers)

For home health agencies, liability insurance is more than a contractual formality; it's a core component of operational stability. Proper coverage:

• Safeguards agency assets and reputation
• Supports continuity of care even after incidents
• Demonstrates professionalism and compliance to partners and regulators
• Reduces financial strain from unexpected litigation

For retail brokers, offering this line signals a deep understanding of healthcare risks and opens doors to cross-sell related coverages, such as cyber liability, EPLI, and workers' compensation. Partnering with a wholesaler like Novatae gives brokers access to A-rated carriers, healthcare-specialized underwriting, and tailored program structures designed for modern home health agencies.

What to Look for in a Program

Not all home health agency liability insurance programs are alike. Key differentiators include: 

• Access to A-rated carriers with dedicated healthcare underwriting expertise
• Availability of combined professional and general liability under one policy
• Options for abuse and molestation coverage and HIPAA/cyber liability extensions
• Coverage for all individuals working for you—including independent contractors and part-time caregivers
• Nationwide program availability with flexible limits and low minimum premiums

At Novatae, we connect retail brokers with markets that understand the intricacies of healthcare operations. Whether your client manages a small local caregiving staff or operates a multi-state home health network, we can help secure coverage that fits their risk profile and business objectives.

Final Thoughts

As healthcare continues to move into the home, liability exposures will only grow. Home health agency liability insurance provides the protection and peace of mind agencies need to continue delivering quality care while preserving their financial stability. 

For retail brokers, this is an opportunity to strengthen client relationships and expand into one of the fastest-growing segments in healthcare risk management. Novatae is here to support you with specialized market access, responsive underwriting, and solutions built for today's home health providers.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.