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Insurance, bonding, and legal costs for a new agency

Protective costs are the ones you cannot skip or fix later: liability insurance, workers' compensation once you have employees, a bond if required, and legal review of your documents. Ask for written quotes based on your real payroll, services, and state, and compare coverage, not just price.

Liability and professional coverage

This covers claims arising from client care. Tell the broker exactly what services you provide. Hiding or understating services can void coverage.

Questions to ask the broker

• What services and hours are assumed in this quote?
• What are the exclusions and limits?
• Does the policy cover caregivers working in a client's home and in transit?

Workers' compensation

Premiums are tied to payroll and job classification. Ask how your caregivers will be classified and whether premium is paid up front or monthly, and how audits adjust it.

Bonds

Some states or payers require a surety bond. Check your state agency and payer requirements first; do not buy one on a guess.

Legal review

Have an attorney in your state review your client service agreement and employee paperwork. A review costs less than a dispute. If you want a checklist of what your documents should cover before you hire counsel, Home Care Agency Blueprint offers paid guidance.

Questions to ask the attorney

• Does my service agreement match what my license allows?
• Are my employee documents consistent with state employment rules?
• What should I keep on file for each client and caregiver?

How to compare quotes

• Same payroll and hours assumptions for every quote
• Policy limits and exclusions in writing
• Payment terms: deposit, installments, audit adjustments

Costs vary by state. For state licensing requirements and fees, see the state licensing guides at starthomecareagency.com. We do not quote state fees on this site.

Common questions