In the Home Care industry, both of these coverages are needed. They also need to be written by the same insurance company.
All insurance policies have an Insuring Agreement that states coverage. The Insuring Agreements for General Liability and Professional Health Care Liability are very different.
An agency that specializes in Home Health and Home Care can help your company to identify and insure for exposures that can result in claims.
Many Home Care and Home Health firms make the costly mistake of relying on General Liability policies to provide adequate coverage for potential claims. Without specialized coverage, you might be held responsible for defending and paying claims that could be catastrophic for your business.
General Liability Insuring Agreement – Sample
General Liability insurance will pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury and property damage to which this insurance applies. We will have the right and duty to defend the insured against any suit seeking those damages.
The key words are bodily injury and property damage, defend and legally obligated.
Bodily injury – In the case of Home Care, when a caregiver is transferring a patient, and he or she is hurt due to a fall, the General Liability policy will pay for patient’s related medical bills suffered by the patient or consumer.
Defend – If the patient or consumer sues the Home Care agency for the negligence of its employed caregiver then the General Liability policy will provide an attorney and defend you in the lawsuit.
Property Damage – If a caregiver while at the patient or consumer’s house causes any property damage to the patient or consumer’s property, the General Liability policy will pay for that loss.
Professional Health Care Liability Insuring Agreement – Sample
This type of insurance will cover damages that arise as a result of medical incidents for which the policy-holder is deemed legally responsible. In such circumstances, we have the right and duty to defend our client against legal actions seeking those damages.
Key Word – Medical Incident
If a Home Care caregiver fails to recognize critical changes in the patient’s condition or general health, the result might be a medical crisis, adverse outcome or even a fatality for which the Home Care agency is held liable. The Professional Health Care Liability policy will cover such claims.
The General Liability policy will not, because no bodily injury was involved.