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When something goes wrong with a private caregiver arrangement, and unfortunately, it does with some regularity, families are often stunned to discover that their homeowner’s insurance provides little to no protection. The assumption that being covered at home means being covered from every home-based liability is one of the most dangerous misconceptions in private caregiver arrangements.
This guide is for families across Oakwood, Centerville, Beavercreek, Bellbrook, and throughout Greater Cincinnati and Dayton who want to understand exactly what insurance coverage is and isn’t in place when a private caregiver works in their home and how working with a licensed agency eliminates these coverage gaps.
What Your Homeowner’s Insurance Policy Probably Does NOT Cover
Standard homeowner’s insurance policies are designed to cover property damage and personal liability arising from accidents on your property, such as a guest slipping on your steps, for example. They are generally not designed to cover employment-related liabilities.
Workers’ Compensation Claims
If a private caregiver is injured while working in your home and you haven’t obtained separate workers’ compensation coverage through the Ohio BWC, your homeowner’s policy will not typically cover the claim. Ohio is a monopolistic workers’ comp state, meaning all workers’ compensation coverage must be purchased through the Ohio Bureau of Workers’ Compensation, not private insurers. Most homeowner’s policies explicitly exclude workers’ compensation claims.
Employment Practices Liability
If a former private caregiver sues you for wrongful termination, discrimination, failure to pay overtime, or sexual harassment, your homeowner’s policy provides zero coverage. Employment practices liability is a specialized coverage entirely separate from homeowner’s insurance.
Professional Liability / Negligence
If the private caregiver’s negligence causes your parent harm, a fall due to an improper transfer, a medication error, a burn from bath water that was too hot, and your parent (or their estate) sues, homeowner’s insurance may cover some general liability aspects, but it will not cover professional negligence in the delivery of care services.
The Insurance Coverage You Actually Need With a Private Caregiver
If you proceed with a private caregiver arrangement, the following insurance coverages should be in place to adequately protect your family:
1. Ohio Workers’ Compensation Coverage
As detailed in our legal implications blog post, if your private caregiver meets Ohio’s wage threshold, you are legally required to have workers’ comp coverage through the Ohio BWC. The annual premium for household employers is typically modest, often $200 to $500, depending on payroll, but the protection it provides is essential. Contact the Ohio BWC directly at bwc.ohio.gov to register as a household employer.
2. Umbrella Liability Insurance
A personal umbrella liability policy, typically purchased through your homeowner’s or auto insurance carrier, provides an additional $1 million to $5 million in liability coverage above your standard policy limits. For household employers, an umbrella policy is strongly recommended. Costs are typically $150 to $300 per year for a $1 million policy.
3. Homeowner’s Policy Endorsement for Domestic Employees
Some homeowner’s insurers offer an endorsement that extends liability coverage to domestic employee situations. Contact your homeowner’s insurance agent to ask specifically whether your policy includes or can be amended to include domestic employee liability coverage.
4. Employment Practices Liability Insurance (EPLI)
EPLI covers claims arising from wrongful termination, discrimination, failure to pay wages, and other employment-related disputes. While not legally required, it is advisable for any household employer. Standalone EPLI policies for household employers typically cost $500 to $1,500 per year.
5. Fidelity Bond / Dishonesty Bond
A fidelity bond specifically covers theft by a household employee. If your private caregiver steals cash, jewelry, or other valuables, a fidelity bond provides reimbursement. These policies are typically inexpensive ($100 to $300 per year for basic coverage) and are a wise addition to any private hire arrangement.
What Insurance Coverage a Licensed Agency Provides
When you work with Seniors Helping Seniors® Warren Clermont, you benefit from the comprehensive insurance infrastructure we carry as a professional employer:
- Commercial General Liability Insurance: Covers property damage and bodily injury caused by our caregivers while in your home.
- Professional Liability (Errors & Omissions) Insurance: Covers claims arising from negligent delivery of care services.
- Workers’ Compensation Insurance: Covers our caregivers for any work-related injuries, at no liability to you.
- Employee Dishonesty / Fidelity Bond: Protects against theft by our caregivers.
- Hired and Non-Owned Auto Insurance: Covers caregiver transportation activities when applicable.
You, as the client, carry none of these obligations and none of these risks. Our insurance infrastructure is in place before the first caregiver ever enters your parent’s home.
The True Cost Comparison: Insurance Edition
Families considering private hire as a cost-saving measure should factor in the true cost of adequate insurance:
- Ohio BWC workers’ comp registration and premium: $200–500/year
- Umbrella liability policy: $150–300/year
- Homeowner’s endorsement for domestic employees: $75–150/year
- Employment practices liability insurance: $500–1,500/year
- Fidelity bond: $100–300/year
Total additional insurance cost: approximately $1,025–$2,750 per year, or roughly $20–$53 per week. Added to the private caregiver’s wage, tax obligations, and the cost of your own background check process, the financial advantage of private hire diminishes significantly.
Frequently Asked Questions
Q: Does my homeowner’s insurance cover a private caregiver if they’re injured in my home?
Standard homeowner’s insurance policies typically do not cover workers’ compensation claims from household employees. You must obtain a separate Ohio BWC workers’ compensation policy if your private caregiver meets the state’s wage threshold.
Q: What is a fidelity bond, and do I need one for a private caregiver?
A fidelity bond (also called a dishonesty bond) is a type of insurance that reimburses you for theft committed by your household employee. While not legally required, it is strongly advisable for any private caregiver arrangement, given the access caregivers have to your parent’s home, valuables, and financial documents.
Q: Is a licensed home care agency automatically insured?
A reputable licensed home care agency should carry general liability, professional liability, workers’ compensation, and employee dishonesty coverage. Always ask for a certificate of insurance before signing a service agreement, and verify that the policy is current and covers the services being provided in your home.
Key Takeaways
Homeowner’s insurance generally won’t cover a private caregiver’s employment-related risks. It’s built for accidents on your property, not for workers’ compensation claims, employment practices disputes (such as wrongful termination or unpaid overtime), or professional negligence in delivering care, like a transfer-related fall or a medication error.
Ohio workers’ comp is a legal requirement in many cases. If your private caregiver meets the state’s wage threshold, you must register as a household employer and buy coverage through the Ohio BWC, since Ohio is a monopolistic state. Premiums are typically modest, around $200 to $500 a year.
A private hire needs a layered set of extra coverage. Beyond workers’ comp, the article recommends umbrella liability insurance, a homeowner’s endorsement for domestic employees, employment practices liability insurance (EPLI), and a fidelity bond to cover theft.
Those added costs narrow the savings of hiring privately. The article estimates roughly $1,025 to $2,750 per year, or about $20 to $53 per week, in extra insurance, on top of the caregiver’s wages, taxes, and your own background checks.
A licensed agency carries this coverage for you. The agency in the article (Seniors Helping Seniors® Warren Clermont) says it holds general liability, professional liability, workers’ comp, fidelity bond, and hired and non-owned auto insurance, so the client takes on none of those risks. The article advises asking any agency for a certificate of insurance and verifying it is current before signing.
Ready to Protect Your Loved One?
At Seniors Helping Seniors® Warren Clermont, we serve families across Greater Cincinnati & Dayton, including Milford, Loveland, Lebanon, Morrow, Maineville, Waynesville, Springboro, Franklin, Bethel, Batavia, Amelia, Withamsville, Eastgate, Goshen, New Richmond, Mt. Orab, Fayetteville, Blanchester, Wilmington, Oakwood, Centerville, Kettering, Bellbrook, and Beavercreek. Every caregiver we place is thoroughly screened, bonded, insured, and trained.
Don’t gamble with your family’s safety. Visit us at https://shswarrenclermont.com to schedule a FREE, no-obligation consultation, or call us today. You deserve complete peace of mind.