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
- 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.
- 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.
- 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 [email protected].