If you work in a hospital or clinic, you’re insured. But the moment you step into a private home, that protection disappears. Are you prepared for the risks?
Many PSWs and HCAs don’t realize that they lose their employer-provided coverage when working independently. Without liability insurance, any lawsuit or claim falls entirely on you—but there is good news! Liability insurance is affordable and accessible through professional associations.
PSWs and HCAs can access insurance through insurers who specialize in professional liability as well as provincial and national associations, just like nurses. You can rest easy knowing financial protections are in place if an allegation arises.
Why Independent Home Care Providers Need Their Own Insurance
Hospitals and agencies must carry liability insurance. This coverage also extends to their employees, but it may not fully protect you if you are personally named in a lawsuit.
As an employee, you are protected for the work you do if it falls within the scope of your job duties. What that means is, if you were following hospital policies and procedures, your employee’s legal team would fight for you.
But what if you were accused of misconduct or an injury while engaged in something outside your usual scope of duties? Even if this is not the case, you may have to get a lawyer and pay the fees out of your pocket.
So, while you may be covered for the work you do for your employer, having independent coverage is essential. It picks up where your employer’s insurance leaves off, covers you personally while employed, and follows you when you take on independent work.
Having the right coverage ensures you are protected in any situation, providing the peace of mind you need to focus on what you do best.
Employer insurance doesn’t follow you
HCAs and PSWs are hard-working, committed caregivers. Many take on private clients outside of their agency and hospital shifts to supplement their income or support people in need.
However, many do not realize that the protection ends once they leave the work premises.
If you take private clients—whether as an independent or a freelancer—any work done outside the scope of your employment is unprotected. This could also extend to work you do “off the clock” at your place of employment.
We’ve heard stories of PSWs taking on jobs, sometimes pro bono because they want to help, and being accused of injury. Even if the claim is unwarranted, it must be treated seriously, as the repercussions can be financially life-changing and not in a good way.
Having the right coverage ensures you are protected in any situation, providing the peace of mind you need to focus on what you do best.
Nobody anticipates the worst that can happen, but accidents occur all the time. Sometimes, it’s unavoidable, but it could just as easily be a misunderstanding.
A single accident could cost thousands, which would have to be paid out of pocket if the worker was uninsured. Legal fees, settlements, and damages would be payable if the court rules against you.
Getting insured is a much better option as it covers legal fees, client injuries, and caregiver protection, providing liability coverage up to $2 million for as little as $19 per month. It’s a small price to pay for the peace of mind you’ll get.
What Insurance Covers: Understanding a Standard Policy
It’s essential to understand the terminology of your policy. While you may think that professional liability covers everything, that might not be the case. Adding to the confusion, different providers may have unique definitions of certain terms, and specific types of coverage may have to be purchased separately.
For example, professional liability coverage and errors and omissions (E&O) are basically the same, but some insurers may prefer one term over another. Both protect professionals from claims arising from mistakes, negligence, or failure to deliver services.
Abuse claims, whether physical or sexual, are treated differently as they are criminal acts. Most standard policies exclude coverage for these and other intentional acts, although some insurers recognize that allegations can happen in healthcare settings and offer specialized coverage as an endorsement or add-on to the policy.
Ultimately, it’s important to understand what you are and are not covered for. Adding abuse coverage to your policy is always a good idea, and it generally does not increase your premium significantly.
Insurance coverage is especially important if you’re a PSW or HCA working closely with vulnerable clients in high-risk situations – bathing, mobility assistance, feeding.
Being Part of an Association Strengthens Your Professional Standing
Nurses are automatically covered through their professional associations as their work involves performing medical acts, and their employers’ coverage may not always fully protect them.
However, despite working closely with vulnerable clients in high-risk situations—bathing, mobility assistance, feeding—PSWs and HCAs do not have the same automatic coverage. If something goes wrong, they could face legal and financial consequences if unprotected.
All things considered, shouldn’t PSWs and HCAs have similar protection at work?
Just like nurses, PSWs and HCAs can now join associations to access the same resources and benefits. Beyond insurance, associations offer legal support, advocacy, continuing education, networking opportunities, an extensive peer group, and many career enrichment opportunities—and potentially better jobs, as platforms, clients, families, and employers prefer working with insured caregivers. When HCAs and PSWs are insured, it reduces the employer’s liability and also shows them that you take your career seriously.
Insurance is affordable and worth the investment
Liability insurance costs about $19–$20 per month through a professional association. Compare that to thousands of dollars in legal fees and damages if an incident occurs, and it’s easy to see the value.
It’s peace of mind for yourself and your clients, who will recognize your commitment. It’s an investment in your future and a strong differentiator in a job search, as clients will almost always choose an insured HCA over one that isn’t.
The risks of working without insurance
Getting insured is a wise, simple decision that will serve you throughout your professional life.
Lawsuits can happen even if you did nothing wrong; one accident could result in financial and professional disaster.
For example, a Statistics Canada Health Report found that nearly 20% of hospital-employed RNs acknowledged that medication errors involving patients in their care occurred occasionally or frequently.
The Canadian Nurses Protective Society (CNPS) identified several common scenarios that may lead to negligence claims against nurses, including incorrect or delayed diagnosis, medication errors, or administering the wrong treatment.
Approximately one in 17 hospital stays in Canada over the past three years involved at least one harmful event, totaling 150,000 out of 2.5 million hospital stays. Of these incidents, 4% were categorized as patient accidents, including falls.
Any of the above examples could have been blamed on a caregiver. With the professional liability coverage in place and the support of your professional association, you can be assured not just of financial protection but of sound legal advice and advocacy as you navigate the process.
