Protecting Your Care Agency: Essential Insights for Success

Paul.
Oct 17
2 min read

Updated: Nov 4

Understanding the Risks in Running a Care Agency

Running a care agency isn’t just about providing excellent patient care; it’s also about protecting your business. Here’s what’s quietly putting agencies at risk 👇

Rising Work Comp Costs

Your Experience Mod (X-Mod) might be costing you thousands. One claim can raise your rates for three years. It’s crucial to monitor these costs closely to avoid unexpected financial burdens.

1099 Caregivers = Audit Trouble

If your caregivers are classified as 1099 contractors but should be W-2 employees, you could owe back premiums. This misclassification can also lead to uncovered claims, putting your agency at significant risk.

Coverage Gaps You Don’t See

A fall, medication error, or client complaint can trigger multiple uncovered claims. Most agencies don’t realize what’s missing until it’s too late. Regularly reviewing your coverage is essential to ensure you are fully protected.

Cyber + HIPAA Exposure

One stolen laptop or phishing email can lead to six-figure fines. Cybersecurity is not just an “IT problem” anymore; it’s a critical aspect of your business strategy. Implementing robust security measures is vital to safeguard sensitive information.

Driving Without Coverage

Are your caregivers using their own cars? You could be liable if they crash, unless your policy specifically covers hired and non-owned autos. Make sure your insurance policy includes this coverage to avoid potential legal issues.

Vendor Insurance Lapses

If your subcontractor’s policy expired and you didn’t catch it, you’re the one on the hook. Always verify that your vendors maintain active insurance coverage to protect your agency from unexpected liabilities.

Compliance Fatigue

One missed credential, outdated policy, or documentation gap can trigger penalties or loss of reimbursement. Staying compliant requires constant vigilance and attention to detail.

The Importance of Risk Management

Effective risk management is essential for the longevity of your care agency. By identifying potential risks early, you can implement strategies to mitigate them. This proactive approach not only protects your agency but also enhances your reputation in the industry.

Free Risk Review for Care Agencies

At Peloton Insurance Brokers, we help agencies in CA, NV & TX stay compliant, protected, and profitable. We offer a free risk review to show you exactly where the gaps are and how to fix them before a claim or audit occurs.

👉 Contact a Broker today!

Conclusion

Protecting your care agency requires a comprehensive understanding of the risks involved. By addressing these issues head-on, you can ensure your agency remains compliant and profitable. Don’t wait until it’s too late—take action now to safeguard your business.