⏱️ Timeline Expectation: 1 to 2 Weeks
Do not leave this until the last minute. Getting an insurance quote in the home care industry takes time. Expect it to take 3 to 7 days to receive quotes back, and another 1 to 2 days to bind coverage and receive your official certificates.
The $1,000,000 Minimum Requirement
All agency providers are required to carry a bonded general liability insurance policy of at least $1,000,000. This is a hard floor -- do not accept a policy with lower limits.
🚨 Critical: Always Say "Non-Medical Home Care Agency"
When you contact an insurance agency, it is vital that you explain you are wanting to insure a Non-Medical Home Care Agency. This is very important because a lot of insurance agencies will not provide coverage to Medical Home Care Agencies. If you don't specify this upfront, you may receive an incorrect quote, get denied, or end up with the wrong type of policy.
Recommended Insurance Providers
These providers are known to work well with Non-Medical Home Care Agencies:
- Insureon -- Online marketplace that lets you compare multiple carriers at once
- Bizinsure -- Specializes in home care agency coverage
- Hiscox -- Known for fast online quotes for small care agencies
- CMFGroup -- Home care industry specialists
- Iaohio -- Additional option for home care coverage
The Policies You Must Request:
When you talk to your broker or carrier, tell them you are opening a Non-Medical Home Care Agency in California and need quotes for the following:
1. Commercial Crime Bond (Dishonesty Bond) 🚨 STATE REQUIRED
Theft is the most common claim in home care. This bond ensures clients are compensated if an employee steals cash, jewelry, or misuses a credit card. CDSS requires this exact document for your license packet.
2. General Liability Insurance (minimum $1,000,000)
Protects your business from claims of bodily injury, property damage, or accidents. This is the foundational policy every agency must carry. Minimum $1M per occurrence -- do not accept less.
3. Professional Liability Insurance (Errors & Omissions)
Covers claims of negligence or failure to deliver promised services. For example, if a caregiver fails to assist a client safely and an injury results, professional liability covers your agency for damages arising from that failure to perform.
4. Workers' Compensation Insurance
Required if you have employees. This policy covers work-related injuries or illnesses sustained by your caregivers on the job. Mandatory under California law for any W2 employee.
Payroll Tip:* Your initial premium deposit is based on your estimated payroll. Use a conservative estimate for your first year to keep upfront costs down.
5. Auto Insurance (Commercial Auto or Business-Use Policy)
If you or your caregivers provide transportation services -- such as driving clients to doctor appointments, errands, or community activities -- ensure you have either commercial auto insurance or a personal auto policy that explicitly covers business use of the vehicle. A standard personal auto policy typically excludes business-related driving, which would leave you unprotected in the event of an accident.