In Conversation with Joe Schaffner to Bring His Insights on Home Care Risk Management

Home care risk management is not merely a regulatory requirement; it’s a fundamental principle that underpins the delivery of quality care. By proactively identifying and mitigating potential risks, agencies can ensure a safe and supportive environment for their clients, fostering trust and confidence.

Through meticulous client assessments, comprehensive caregiver training, and rigorous adherence to safety protocols, agencies can create a culture of risk awareness and prevention. It protects the clients’ well-being and safeguards the reputation and sustainability of a home care agency.

To shed some light on the same, we interviewed a home care industry expert to bring his perspective on home care risk management.

Let us now delve into what he has to say about home care risk management:

Question 1: What are the most common risks associated with home care services, and how can these be mitigated?

The most common risk associated with the home care industry is, without a doubt, caregiver injury while working. You can mitigate that risk by making sure that when a care plan is put together, a caregiver has all the skills and physical capabilities to execute it.

More importantly, ensure they do not deviate from that care plan as it is put together in the best interests of the client, the caregiver, and the agency owner.

The agency’s job is to take care of the caregivers who take care of the seniors.

Question 2: What types of insurance coverage are essential for a home care agency to protect against potential liabilities?

The majority of the liability protections can be generally found in a package policy, and within that is the general liability that’s going to protect them in case a caregiver is negligent and damages a client’s property.

There’s going to be professional liability that’s going to be covered if a caregiver is negligent—injuring or potentially involved in the wrongful death of a client. They will also need auto liability that is essentially insurance above and beyond the caregiver’s personal insurance as they use their personal vehicle for work and/or drive the client’s car.

The insurance that’s called non-owned auto liability would sit above and beyond the caregiver’s primary insurance. They would also need abuse and molestation coverage to protect them if there’s that type of accusation, as well as theft coverage.

They will need either a bond or an insurance that will protect them if a caregiver is alleged to have stolen something from the client.

Generally, all of these insurances can be found in a commercial package policy. The other insurances are optional coverages such as cyber, employment practice liability, etc. And then in every state, of course, there is the requirement for workers’ compensation that is covered if a caregiver is injured while working.

Question 3: How can agencies ensure compliance with insurance requirements and regulations?

Get involved with a broker you trust and know and one that has industry knowledge. I’ve done home care insurance for 18 years.

And I’ve worked with a majority of franchises, and they have their franchise requirements and their licensing requirements. This is definitely a niche when it comes to home care. It is essential to have someone who understands the insurance you need and also knows how to manage the risk surrounding it.

A good risk manager protects your business from incidents that may happen in the home and helps you manage risk to be more profitable.

In this industry, to be profitable, you need to retain caregivers—those who can do that at a higher rate than their competition will grow faster and more sustainably. Also, the cost of client turnover increases due to caregiver turnover.

The entire thing is built around trust between the agency and its caregivers, and the agency’s ability to hire and retain quality caregivers.

Question 4: What are the best practices for documenting incidents and claims to ensure a smooth insurance process?

The best practice is to have a process in place. Any cop carriers have a nurse triage service that allows for 24 call-ins if a caregiver is injured. But the most important thing is, when you are documenting the files, to reach out to your broker to get assistance on how to manage that risk.

The idea is to manage that situation and prevent it from escalating, whether it’s an alleged theft claim or a caregiver was negligent somehow in the client’s home or a caregiver is injured.

The sooner those things get reported and the sooner a game plan is put together on how to address those specific issues, the better off that claim will be handled or potential claim will be handled.

Question 5: Can you provide examples of effective risk management strategies that have been successfully implemented in home care agencies?

To prevent theft claims, make sure that all valuables—jewelry, watches, etc.—are locked up at all times. Also, there should be no cash on the premises.

And often, agency owners have a hard time having this sensitive discussion with the caregivers they’re hiring. But it’s their job to ensure that their caregivers are not unjustly accused of something they did not do.

And if that potential risk is removed from the situation, then there won’t be that accusation of a caregiver stealing. The best thing from a risk management perspective is that the office and the staff of a home care agency understand that their job is to take care of caregivers who take care of seniors.

And that caregivers need to be the agency’s priority.

In Conclusion

Joe Schaffner’s insights underscore the critical role of risk management in home care. By prioritizing caregiver safety, implementing comprehensive insurance coverage, and fostering a culture of trust, agencies can mitigate potential liabilities and ensure a positive experience for both clients and caregivers.

Effective risk management is not only a regulatory necessity but a strategic imperative for the long-term success and sustainability of home care businesses.