Fueled by the growing number of adults age 65 and older, revenue in the home health care industry currently tops $74.5 billion annually. In response, Hiscox offers flexible, individual risk reviews without revenue thresholds.
PRODUCT: Non-admitted Hiscox PRO Allied Healthcare Home Health professional liability
COMPANY: Hiscox, Inc (Syndicate 3624)
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available for Hiscox-appointed brokers.
FOCUS: Brokers looking for growth need look no further than home health care. Jim Whetstone, professions practice leader for Hiscox, says the industry’s revenue currently tops $74.5 billion annually, and explains it’s fueled by the growing number of adults age 65 and older, an increase in disposable income and the expansion of private health insurance.
Quoting figures from the U.S. Bureau of Labor Statistics, Whetstone says home health care professional jobs rank among the top six occupations that will experience the most growth between 2012 and 2022. In fact, projected employment growth is 48.5% across the industry, including positions for personal care aides, registered nurses, home health aides and nursing assistants. And according to The Alliance for Home Health Quality & Innovation’s May 2015 whitepaper “The Future of Home Health Care Project,” providing care in the home “can improve patient outcomes in the least costly, and generally patient-preferred, setting.”
But when situations involve medical complexity and caring for loved ones—not to mention the standard risks all businesses face—there’s tremendous potential for liability, Whetstone points out. And a remarkable range of business models—from franchises to privately and corporate-owned and from local to multi-market units—offer a variety of services in patients’ homes or at assisted and independent living facilities.
Because of these varied service models and the complex nature of home health care, Whetstone explains that Hiscox conducts flexible, individual risk reviews and foregoes any revenue thresholds. He also emphasizes that insurance and risk management isn’t why home care companies went into business. “It can be tough to make the investments or changes needed to support growth when you’re worried about risk and liability,” Whetstone says. “I think our tagline, ‘Encourage Courage,’ perfectly captures our commitment to focus on comprehensive protection. In effect, we’re telling clients to do what they do best and feel comfortable stretching a bit, because we’ve got them covered.”
UNDERWRITING: Hiscox considers all types of home care and makes both claims-made and occurrence general liability available with: $250,000 HIPAA violations coverage sublimit; $10,000 defense of license limit; $10,000 subpoena assistance limit; $300,000 sexual abuse/misconduct sublimit (with option to full limit); three-year ERP options up front; crime and privacy/data breach add-ons; and duty to defend.
Because home health care models differ drastically, Hiscox uses a tailor-made form for both claims-made and reported professional liability. Hiscox provides automatic additional insured status for management companies, franchisors and vendor managers and coverage encompasses affirmative property damage and defense outside of the limit. Optional coverage includes a sublimit for first-party billing errors and an incentivized zero-dollar deductible.
MINIMUM PREMIUM: $1,000 for professional liability; $400 for general liability.
TARGET: Companies that provide health care services in patients’ private residences, assisted living or independent living facilities. Services include skilled nursing care, personal care, homemaker and companion services, physical therapy and other support services, as well as in-home hospice care providers.
COVERAGE TERRITORY: All 50 states.
CONTACT: Alicia Cardinale, Allied Healthcare National Underwriting Leader; Hiscox, 520 Madison Ave, 32nd Floor, New York, NY 10022; 914-273-7428.
Ronimarie Acord is an IA contributor.
