In-home caregivers can make recovery from an injury, elder care or end-of-life care much more comfortable and affordable compared to a facility.
However, they introduce a complication: insurance coverage. Here’s what you need to know.
Caregiver agencies should handle insurance concerns
If you connect with your chosen caregiver through an agency, chances are good that the agency will carry the insurance coverage needed to protect both you and the caregiver. However, this is not always the case, so ask in advance.
You also want the agency to have liability and worker’s compensation insurance.
Skipping the agency puts the onus on you
If you choose to hire a caregiver on your own, it’s on you to get the right coverage. In general, your homeowner’s insurance will not be sufficient for covering an in-home caregiver. Potential injury is significant, so your liability coverage may not be enough.
Homeowner’s policies offer limited worker’s compensation
This comes as a surprise to many, but your homeowner’s insurance likely includes worker’s compensation coverage. However, unless you take out additional coverage, this only applies to occasional employees. These are people who come to work on your property for a limited number of hours per week—usually four or less. In-home caregivers are present for more hours and thus are not covered under a standard policy.
Health insurance might help
The health insurance policy of the person being cared for may cover some of the costs of an in-home caregiver. While this rarely includes insurance coverage on the caregiver, it can cover part or all of their salary, freeing up money to get necessary liability and worker’s compensation coverage.
Be prepared for other expenses
Even once you work out the insurance issues, there are other expenses you need to be ready for. For example, if you are not using an agency, you will need to pay unemployment, Medicare and Social Security. Before hiring an in-home caregiver, it’s vital that you do your research to protect yourself and your family.
To learn more about the right coverage for in-home caregivers, speak with your insurance broker.
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