As you begin business operations, if your agency is operational, you should purchase and maintain a policy or policies providing all of the following coverage:
- Professional Liability Insurance (PL): Financial protection for your business against lawsuits filed by your patients. It is important to have PL insurance to protect your agency from lawsuits against you or your field staff. When caring for your patients, whether a field staff member has his/her own insurance or not, your company will be held liable because it is during the course of employment by you. With PL, your legal defense will be completely covered including the cost of investigating claims made against your business. Holding PL for your firm is often mandatory in order to work with referral agencies, service coordination centers, or counties.
- General Liability Insurance (GL): Financial protection for your business against lawsuits filed because of bodily injury or property damage to others in connection with your operations. It is important to have GL insurance to protect your agency from lawsuits against you or your field staff. Accidents that cause injury or property damage are covered. Whether your employee breaks a vase at a patient’s home or someone slips and falls on your premises, GL will cover it. Most landlords require you to hold GL insurance in order to lease office space in their building.
- Workers’ Compensation Insurance (WC): Financial protection for your business against employee injury claims/lawsuits. It is important to have WC insurance to protect your agency from claims/lawsuits made by injured employees. Whether at the office, on the road, or at the patient’s home, if your employee is injured, WC will provide the medical benefits. If you use independent contractors who don’t have their own WC, you are liable for their work related injuries. CA law requires every Home Health, Home Care or Hospice agency with at least one employee to hold WC. Failing to have WC is a criminal offense punishable by fine up to $10,000 and/or imprisonment in county jail up to one year.
- Commercial Property Insurance: Financial protection for your business’s property, building or contents, against fire, theft, and weather damage. It is important to have Property insurance to protect your agency’s building and contents from damage caused by unforeseen circumstances. Have peace of mind knowing your property is insured against direct physical loss or damage. Used as collateral for a loan or credit line, most banks require you to insure your premises, if owned, or its contents.
- Surety Bond: Financial protection for your business against employee dishonesty claims. Adds protection to ensure that money is handled properly and ethically. It is important to be bonded to protect your agency from improper money handling. A bond will cover you from dishonest or negligent actions made by your staff. Establish legitimacy and give your customers and third party vendors peace of mind by ensuring that your monetary obligations are bonded.
To find out more about protecting your company, call ProAction today at (951) 898-9892 for a no-obligation quote.