Caregivers and credentials
Bonded and insured caregiver
A bonded and insured caregiver works for a business that carries a bond and liability insurance. A bond can repay a client for theft or loss. Insurance can cover certain accidents or damage. The agency usually holds the coverage, not the individual caregiver. Policies and limits differ.
Why it matters for your family
Families often hear these words together, but they do not mean the same thing. AARP lists bonding, meaning cover against theft or loss in the home, as a question to ask an agency. It also notes that an independent caregiver generally does not come with bonding or liability coverage. Ask for proof of coverage and read what it includes. A common mistake is to treat bonding as a background check. It is not one. Insurance for a caregiver's own injury is a different policy, called workers' compensation. If you hire someone directly, ask your own insurer which risks your policies cover.
Source: aarp.org
Read more: How to Get Started with Hiring In-Home Care
Related terms
- Workers' compensation for caregiversWorkers' compensation is insurance that pays medical costs and part of lost wages when an employee is hurt at work or gets a work-related illness.
- Licensed home care agencyA licensed home care agency is a business that holds a state license to provide care in people's homes.
- Background checkA background check is a review of a person's records before hiring.
- Private duty caregiverA private duty caregiver is a non-medical caregiver paid directly by the family or through an agency to provide one-on-one help at home.
- W-2 employee versus 1099 contractorA W-2 employee works under the employer's direction and has taxes withheld by the employer.
- Home care agencyA home care agency is a company that employs or contracts caregivers and sends them to clients' homes.
