Common Vehicle Claims and Understanding Auto Coverage for Home Care Businesses

As a home care business owner whose employees drive on the business’s behalf, vehicle incidents can be complex. Depending on which vehicle was being driven, which vehicle was damaged and if anyone was injured, your business insurance, the caregiver’s personal auto insurance or the client’s personal auto insurance may be responsible for damages.

Even with extreme caution by caregivers and a safe driving program in place, vehicle incidents do occur. Consider these real automobile-related claims against home care businesses:

Real Auto Claims Against Home Care Businesses

  1. Caregiver backed into client’s garage

A caregiver, driving their own vehicle, backed into a client’s garage. The caregiver’s personal auto insurance covered the majority of the costs, but the home care business’s insurance was responsible for $1,000.

  1. Client was injured in vehicle accident

A caregiver got into a vehicle accident and the client was injured. Between hospital costs, physical therapy, vehicle damage and more, the home care business’s insurance was responsible for more than $15,000.

  1. Caregiver ran a red light

Driving their own work vehicle, a caregiver ran a red light, hitting several vehicles and totaling their own. Their business insurance was responsible for more than $500,000 in damages.

Whose Auto Insurance Applies in an Accident

As shown in the claim examples above, vehicle accidents can vary profusely in complexity and cost. The following chart illustrates whose insurance would apply in the event of an accident, assuming the caregiver was driving and at fault in the accident.

Driving caregiver’s car  Caregiver driving client’s car
Client injured 1st: Caregiver’s personal insurance

2nd: Business’s HNOA insurance

1st: Client’s personal insurance

2nd: Caregiver’s personal insurance

3rd: Business’s HNOA insurance

Caregiver injured Business’s workers’ compensation insurance Business’s workers’ compensation insurance
Third party injured 1st: Caregiver’s personal insurance

2nd: Business’s HNOA insurance

1st: Client’s personal insurance

2nd: Caregiver’s personal insurance

3rd: Business’s HNOA insurance

Vehicle damage only Caregiver’s personal insurance Client’s personal insurance

Auto Coverage for Home Care Businesses

Even if the client and caregiver’s personal auto insurance policies are used first in response to an accident, it is still critical for home care businesses to have their own coverage.

Hired and Non-Owned Auto insurance (HNOA) provides insurance coverage to business owners for losses that are brought against them involving vehicles they do not own. It can cover bodily injury and property damage that might occur when an employee transports a client during their duties.

Because HNOA provides coverage after other policies’ limits have been reached, Lockton Affinity Home Care receives many inquiries about how HNOA insurance would work in given scenarios. Learn more about this important coverage with our helpful HNOA Guide.

If you have additional questions, please contact Lockton Home Care at (800) 723-9624 or HomeCare@LocktonAffinity.com.