Getting Back to the Basics: Insurance Coverage 101

Understanding the types of insurance coverage available and how they apply to your geriatric care business is key.

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At scBI, we believe education is power


General Liability

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This coverage protects your business organization against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.

  • Scenario: A family member of one of your patients comes into your office to meet with you. While entering through the main door, they slip and fall on some ice on the sidewalk. General liability covers situations like this one.


Professional Liability

This coverage often known as errors and omissions (E&O) insurance protects your company due to claims that a professional service you provided caused your client to suffer financial harm due to mistakes on your part (errors) or because you failed to perform some service (omissions). This also includes sexual and physical misconduct.

  • Scenario: One of your care givers is conducting a home visit to administer medication to a patient. By accident the wrong medication is administered to the patient which causes an allergic reaction sending the patient to the hospital. Your professional liability policy would respond to a situation like this one.


Workers Compensation

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This coverage protects your employees under state laws, and provides medical care, death, disability and rehabilitation benefits for workers who are injured or killed while on the job. This is often the most expensive coverage in the home healthcare industry. Workers’ compensation pricing is based on a percentage of your actual payroll and these rates may vary by state.

  • Scenario: One of your employees injures her lower back while helping move a patient from their bed to the bathroom. Because of her back injury while on the job, she is unable to work for a period of time. Workers compensation coverage would provide medical expense coverage, loss of wages, and retraining if she was not able to come back to same type of position.


Commercial Auto

Commercial auto insurance is needed to cover the vans, trucks, and cars used in conducting your business. This type of policy covers physical damage and liability for amounts, situation, and usage not covered by your personal auto policy. 

  • Scenario: Often you have errands to run on behalf of your business while in your company vehicle. While making a weekly trip on behalf of your business, you or an employee gets into an accident while on the job. Commercial auto (often called hired and non-owned) coverage protects your business.


Cyber Risk

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This coverage is designed to help an organization lessen risk exposure by counteracting costs involved with recovery after a cyber-related security breach or similar event. Unfortunately, if you are in business today, no matter the size of your organization, your greatest risk and exposure is a cyber breach. The purpose of this type of coverage is to protect a companies whose customer’s personal information has been compromised. In this case, you may be responsible or liable for damages incurred by those connected to you. 

  • Scenario: A hacker obtains electronic & paper sensitive personal info from your computer system. As a result, many patients and their families bring a claim against you for allowing access to their personal information. In addition, because personal medical information was compromised you face hefty HIPAA fines and penalties.