If you're starting a home healthcare business in Florida or already running one, you've probably heard a dozen different things about what insurance you actually need. Let's cut through the confusion. Florida has specific requirements that you must meet to get licensed by the Agency for Health Care Administration (AHCA), plus additional coverage that your clients and healthcare partners will demand before they'll work with you.
Here's the thing about insurance for home health agencies: it's not just about checking a box for the state. Your insurance protects your business from financial ruin if something goes wrong—and in healthcare, things can go wrong quickly. A caregiver injured on the job, a client who falls during care, or a medical error can each trigger claims that cost tens or hundreds of thousands of dollars. The right coverage keeps your business solvent and your reputation intact.
Florida's Mandatory Insurance Requirements for Licensing
To get your home health agency license from AHCA, you must carry at least $250,000 in liability insurance per claim. This is non-negotiable. When you submit your application (which costs $2,255), you'll need to provide either a declarations page or certificate of insurance proving you have this coverage in place.
This $250,000 minimum is defined under Florida Statutes Section 624.605(1)(b), and it covers liability claims against your agency. Think of it as your baseline—the absolute minimum you need to operate legally. Your license renews every two years through AHCA's online portal, and you'll need to maintain continuous coverage throughout that period.
But here's where it gets interesting: while the state only requires $250,000, almost no one operates with just that amount. Why? Because your clients won't accept it. Medicare, Medicaid, private insurance companies, and hospital contracts typically require much higher limits—usually $1 million per occurrence and $2 million aggregate. You'll see why those numbers matter in the next section.
General Liability and Professional Liability Coverage
General liability insurance protects your business when someone gets hurt or their property gets damaged because of your operations. Picture this: your home health aide is visiting a client, and while helping them into the bathroom, she accidentally knocks over an expensive vase. Or a client's family member trips over your aide's medical bag and breaks their wrist. General liability covers the cost to replace that vase or pay those medical bills.
The industry standard is $1 million per occurrence and $2 million aggregate. "Per occurrence" means the maximum the policy pays for a single incident. "Aggregate" means the total the policy will pay for all claims during your policy year. Most Florida home healthcare agencies can expect to pay between $365 and $620 annually for this coverage—a small price for the protection it provides.
Professional liability insurance (also called malpractice or errors and omissions insurance) is different. This covers you when a client claims your caregivers made a medical mistake or provided substandard care. Missed medication doses, improper wound care, or failure to recognize warning signs of a serious condition—these are the claims that professional liability handles.
Many insurance providers offer a Miscellaneous Medical Liability Package that bundles general liability and professional liability together, often throwing in cyber liability coverage to protect against data breaches and HIPAA violations. This bundled approach usually costs less than buying each policy separately and ensures you don't have gaps in coverage.
Workers' Compensation Requirements and Thresholds
Under Chapter 440 of Florida Statutes, most businesses with four or more employees must carry workers' compensation insurance. For home healthcare agencies, this kicks in once you have four employees on payroll—whether they're full-time, part-time, or a mix. If you're in construction-related services (like home modifications for accessibility), the threshold drops to just one employee.
There's good news for 2025: Florida employers have seen workers' compensation premium rates decrease by 1% this year, continuing a trend that's seen rates drop 78% since 2003. That's thanks to increased competition in the private market and improved workplace safety efforts across the state.
Workers' comp is crucial in home healthcare because your employees face real risks. Back injuries from lifting patients, needlestick injuries, exposure to infectious diseases, and car accidents while driving between client homes all happen regularly. Most states classify home health care workers under Code 8835, which covers home health aides, personal care providers, and companion care workers.
One important exception: if you're a private individual hiring a caregiver directly to care for a family member in your home, Florida doesn't require you to carry workers' compensation. However, many families choose to purchase it anyway for peace of mind. If that caregiver gets hurt in your home, you could be personally liable for their medical bills and lost wages without coverage.
Additional Coverage to Consider
Beyond the mandatory coverage, several additional policies can protect your home healthcare business from specific risks. Cyber liability insurance has become increasingly important as healthcare data breaches surge. If your agency stores client health records electronically (and you almost certainly do), a data breach could expose you to HIPAA fines, notification costs, and credit monitoring expenses for affected clients.
Commercial auto insurance is essential if your employees drive company vehicles to client homes or use their personal vehicles for work purposes. A hired and non-owned auto policy covers employees driving their own cars for business, protecting your agency if they cause an accident while on duty.
Umbrella insurance provides an extra layer of protection above your primary liability policies. If you have higher-risk clients or valuable contracts, an umbrella policy (typically starting at $1 million in additional coverage) can save your business if a catastrophic claim exceeds your primary policy limits.
What to Expect for Insurance Costs
When budgeting for your home healthcare business, plan for annual insurance and bonding costs between $5,000 and $15,000. This range covers general liability, professional liability, workers' compensation (if applicable), and any additional coverage you need.
Your actual costs depend on several factors: the number of employees you have, your claims history, the services you provide, and your coverage limits. Agencies offering skilled nursing services typically pay more than those providing only non-medical companion care. The more employees you have, the higher your workers' compensation premiums will be.
Don't shop on price alone. The cheapest policy often has the most exclusions and the worst claims service. When your business is on the line, you want an insurance company that answers the phone, handles claims efficiently, and actually pays what they owe. Work with an agent who specializes in healthcare coverage—they understand the unique risks your business faces and can help you avoid coverage gaps.
How to Get Started
Start by getting quotes from multiple insurance providers who specialize in healthcare coverage. You'll need to provide information about your business structure, number of employees, services offered, and revenue projections. Be honest and thorough—misrepresenting your operations can void your coverage when you need it most.
Before you apply for your AHCA license, make sure your insurance is in place. You can't complete the application without proof of coverage, so don't wait until the last minute. Once you have your declarations page or certificate of insurance, you can submit your application along with the $2,255 licensing fee.
Review your coverage annually. As your business grows, your insurance needs will change. You might need higher limits, additional coverage types, or endorsements for new services you're offering. Schedule a review with your insurance agent each year before renewal to make sure you're adequately protected.
Getting the right insurance for your Florida home healthcare business doesn't have to be complicated. Focus on meeting the state's $250,000 minimum for licensing, then build up to the industry standard of $1 million/$2 million in liability coverage that your contracts will require. Add workers' compensation when you hit four employees, and consider cyber liability and umbrella coverage as your business grows. With the right protection in place, you can focus on what matters most: providing excellent care to your clients.
