If you run a domiciliary care agency, having the right insurance isn’t just about ticking a box for the CQC or your local authority—it’s about protecting your business, your staff and the vulnerable people you care for.
One claim, even if completely accidental, could have serious financial consequences if your insurance doesn’t respond in the way you expect.
As specialist insurance brokers, we’ve reviewed countless domiciliary care insurance policies over the years [Domiciliary Care Insurance – ALDIUM Insurance]. One thing has become clear: not all “domiciliary care insurance” policies are created equal.
In this guide, we’ll explain the insurance covers most domiciliary care providers need, the biggest mistakes we see businesses make, and how to make sure your policy genuinely protects you.
The Biggest Mistake Domiciliary Care Providers Make
The most common issue we come across is providers believing they have comprehensive domiciliary care insurance because that’s what the policy is marketed as.
Unfortunately, that’s not always the case.
Many policies available online or through non-specialist brokers contain exclusions relating to care, treatment or medical services. At first glance the policy appears suitable, but when you read the wording, some of the very activities a domiciliary care business carries out every day may be excluded.
This can leave businesses exposed without even realising it.
We’ve taken on clients who had been trading for several years, assisting with medication and providing other regulated care services, only to discover their existing insurance excluded those activities entirely. They genuinely believed they were insured until we reviewed the policy.
Fortunately, no claim had arisen.
Had one occurred, the outcome could have been very different.
Why Treatment and Care Liability Matters
A true domiciliary care insurance policy should include cover for professional care and treatment.
This protects your business if you’re found legally liable following professional errors, omissions or negligence in the delivery of care.
For example, imagine one of your carers is assisting a service user to move safely around their home.
Despite following procedures, the service user falls and suffers an injury. If allegations are made that appropriate care wasn’t provided, your business could face legal action seeking compensation.
Without appropriate care and treatment liability cover, you could find yourself responsible for legal costs and compensation payments yourself.
Claims like these can quickly become financially devastating for even well-run businesses.
What Insurance Does a Domiciliary Care Agency Need?
While every provider is different, most domiciliary care businesses should consider the following covers.
Employers’ Liability Insurance
If you employ staff, Employers’ Liability Insurance is a legal requirement in most circumstances.
It protects your business if an employee is injured or becomes ill because of their work.
Public Liability Insurance protects your business if a third party suffers injury or property damage because of your business activities.
Although essential, Public Liability Insurance alone does not replace specialist care and treatment cover.
Care & Treatment / Medical Malpractice Insurance
This is arguably one of the most important covers for domiciliary care providers.
It protects your business against claims arising from professional care services, treatment, medication assistance and other regulated care activities.
This is also one of the areas where policy wordings vary the most, making it vital to ensure the cover matches the services you actually provide.
Professional Indemnity Insurance
Professional Indemnity Insurance protects your business if advice, professional judgement or administrative errors result in financial loss or legal action.
This is another area where policy differences can be significant.
Some policies include abuse cover as standard, while others restrict or exclude it altogether.
Given the nature of domiciliary care, ensuring appropriate abuse cover is in place is something every provider should discuss with their broker.
Cyber Insurance is becoming increasingly important.
Many domiciliary care providers now hold significant amounts of sensitive personal and medical information electronically.
We’re also seeing an increasing number of local authorities requiring Cyber Insurance as part of their tender requirements, making it an important consideration even if you’ve never previously purchased it.
Business Interruption Insurance
If an insured event prevents your business from operating, Business Interruption Insurance can help cover ongoing expenses and lost income while you recover.
Office Buildings & Contents Insurance
Whether you need this depends on your business.
If you own your office premises you’ll likely require buildings insurance.
If you lease premises, contents insurance may be sufficient to protect your office equipment, furniture and IT.
Motor Insurance
If your business owns vehicles, you’ll require appropriate commercial vehicle insurance.
If carers use their own vehicles, it’s equally important to ensure they’re insured for the correct business use.
What Affects the Cost of Domiciliary Care Insurance?
Many people assume claims history is the biggest factor.
While claims certainly influence premiums, most insurers primarily rate domiciliary care businesses using:
- Turnover
- Wage roll
- The type of care provided
Turnover is important because generally, the larger your business, the greater the exposure to potential claims.
Wage roll is equally significant because it usually reflects the number of employees, directly influencing Employers’ Liability exposure.
Businesses providing more specialist or higher-risk care may also pay higher premiums.
However, something many providers overlook is that premium increases shouldn’t simply mirror business growth.
If your turnover increases by 10%, that doesn’t necessarily mean your insurance premium should increase by 10%.
A good broker should actively negotiate with insurers to ensure you’re paying a fair premium for your changing business, rather than simply accepting automatic increases each year.
What We Look At Before Recommending Cover
Every domiciliary care business is different.
Before recommending insurance, we review far more than turnover and staff numbers.
For example, we’ll look at:
- Whether care and treatment liability is actually included.
- Whether your business description accurately reflects everything you do, including supported living or additional regulated services.
- Your CQC registration, or the relevant regulator in Scotland or Wales.
- Your inspection rating.
- Any changes to your services since your last renewal.
These details can have a significant impact on whether your policy responds correctly when you need it most.
Starting a New Domiciliary Care Business?
If you’re launching a new care agency, insurance starts long before the policy is arranged.
Insurers want confidence that your business is well managed.
Having a clear business plan, Statement of Purpose, experienced senior management team and evidence of previous care sector experience all help insurers understand the quality of your business.
The more confidence underwriters have in your organisation, the more comfortable they generally are when assessing the risk and pricing your insurance.
Why Working With a Specialist Broker Matters
Domiciliary care isn’t like insuring an office or a shop.
It involves specialist risks, complex policy wordings and insurers who understand the sector.
If you’re looking for specialist domiciliary care insurance, we work with a wide panel of insurers that offer comprehensive cover specifically designed for care providers.
Rather than recommending a one-size-fits-all policy, we review your business, understand exactly what services you provide and identify any gaps before they become a problem.
Our role is to make sure you can focus on looking after your service users, knowing your insurance is protecting your business in the background.
Final Thoughts
Insurance shouldn’t be viewed as a compliance exercise.
It’s there to protect the business you’ve worked hard to build.
One serious incident could threaten everything you’ve created if your insurance doesn’t respond as expected.
Taking just 15 minutes to speak with a specialist broker can provide reassurance that your cover genuinely reflects the services you provide and the risks your business faces.
If you’re unsure whether your current policy includes appropriate care and treatment cover, or you’d simply like a second opinion, the team at Aldium Insurance would be happy to review your existing arrangements and help ensure your business has the protection it deserves.
