Insurance checklist for starting a home health care business in Texas

Starting a home health care business in Texas involves more than just licensing and hiring staff. Insurance also plays a key role in protecting your business, your employees, and your clients from day one.

This checklist walks through the core insurance policies that most Texas home health care businesses consider, plus optional coverage to consider as you grow. 

Insurance options for home health care businesses in Texas 

Before you begin working with clients, you may want to have business insurance in place to help protect yourself and your employees. Popular coverage options include: 

General Liability insurance 

General Liability insurance is a baseline policy for almost every home health care business. It helps cover: 

• Client injuries that happen during care visits 

• Damage to a client’s property 

• Legal defense costs tied to covered claims 

Most Texas agencies secure this coverage early since many referral partners and facilities require proof before sending clients your way. 

Professional Liability insurance 

Professional Liability insurance covers claims arising from errors or omissions in the care services you provide. 

For home health care businesses, this policy is often critical. Even small mistakes can lead to costly claims. Pairing Professional Liability with General Liability creates a strong insurance foundation for home health care providers. 

Workers’ Compensation insurance 

If you plan to hire caregivers or clinical staff, Workers’ Compensation insurance should be high on your list. This coverage helps pay for: 

• Employee medical bills related to work-related injuries 

• Lost wages during recovery 

• Employer liability protection 

While Texas has flexible Workers’ Compensation rules, many agencies still carry coverage to protect both staff and the business. It may also be required to accept government contracts. 

Business Owner’s Policy 

A Business Owner’s Policy, often called a BOP, bundles General Liability with commercial property insurance. This option can help cover: 

• Office equipment 

• Computers and medical devices 

• Leased office space 

Bundling coverage can help reduce overall home health care business insurance costs for new agencies. 

Cyber Liability insurance 

Home health care businesses handle sensitive client data. Cyber Liability insurance helps protect against data breaches and system attacks. 

This coverage can help pay for: 

• Data recovery 

• Notification costs 

• Legal expenses 

As digital records become standard, cyber coverage is becoming more common for Texas agencies. 

Surety bonds and fidelity bonds 

Some agencies choose bonds to add another layer of protection: 

• Surety bonds may be required by contracts or state rules 

• Fidelity bonds help cover theft by employees 

These policies are often affordable and can build trust with clients and partners. 

How to prioritize coverage when starting out 

Not every business needs every policy on day one. A common approach is to start with core coverage, then add other policies as the business grows. 

A typical order for Texas startups looks like this: 

1. General Liability and Professional Liability from day one 

1. Workers’ Compensation once employees are hired 

1. Commercial auto if driving is involved 

1. Cyber Liability and bond coverage as operations expand 

Getting insured in Texas 

Choosing the right coverage depends on your services, staff size, and growth plans. Comparing policies helps avoid gaps and find reasonable pricing. 

BizInsure allows Texas business owners to compare policies designed specifically for home health providers. You can explore home health care insurance coverage options here. 

If you are still in the planning phase, you can find guidance on starting a home care business in Texas, including licensing and compliance steps here.  

Protecting your growing business 

Insurance is not just a requirement. It is a safety net that helps your home health care business operate with confidence. Using this checklist can help you build a home health care business insurance setup that suits your needs from the start and avoid costly surprises later.