California Home Care Organization Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a California Home Care Organization Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All home care organizations operating in California
- Purpose: To ensure consumers will receive compensation for any damages should employees of the home care organization steal property
- Who Regulates Home Care Organizations in California: The California Home Care Services Bureau
Background
California Health and Safety Code 1796.32 requires all home care organizations operating in the state to obtain a license with the Home Care Services Bureau. The California legislature enacted the licensing laws and regulations to ensure that home care organizations engage in ethical business practices. To provide financial security for the enforcement of the licensing law, home care organizations must purchase and maintain a $10,000 surety bond to be eligible for licensure.
What is the Purpose of the California Home Care Organization Bond?
California requires all home care organizations to purchase a surety bond as part of the application process to obtain a business license. The Home Care Organization bond is a type of fidelity bond that ensures consumers will receive compensation for financial harm if the home care organization fails to comply with the regulations set forth in California statute 1796.37. Specifically, the bond protects consumers in the event the home care organization’s employees engage in any acts of theft while present in a consumer’s home.
How Can an Insurance Agent Obtain a California Home Care Organization Surety Bond?
BondExchange makes obtaining a California Home Care Organization surety bond easy. Simply log in to your account and use our keyword search to find the “home care” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the California Home Care Organization Bond?
No, a credit check is not required for the California Home Care Organization bond. Because the bond is considered relatively low risk, the same low rate is offered to all home care organizations in California regardless of their credit history.
How Much Does the California Home Care Organization Bond Cost?
The California Home Care Organization bond costs just $100 per year or $10 per month.
How Does California Define Home Care Organization?
California statute 1796.12 defines a home care organization as any business entity that employs home care aides who provide nonmedical care to consumers within their own homes. For example, home care aides may assist residents with meal preparation, bathing, and shopping.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Home Care Organizations Apply For a License in California?
Home care organizations in California must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the application packet for details on the process.
License Period – All California Home Care Organizations Licenses are valid for two years from the date of issuance and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Home care organizations must purchase and maintain a $10,000 surety bond
Step 2 – Purchase Insurance
All license applicants must purchase liability insurance with the following minimum limits:
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- $1 million per occurrence
- $3 million aggregate
Home care organizations must submit proof of insurance with their license application.
Step 3 – Complete the Application
All California Home Care Organization License applications should be mailed, along with all applicable fees, to the following address:
California Department of Social Services
Home Care Services Bureau
744 P Street, M.S. 9-14-90
Sacramento, CA 95814
The application consists of the following forms:
Additionally, home care organizations must submit the following supplemental documents:
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- Company formation documents
- Job descriptions for each company position
- Personnel policies
- Training plan
- Home care organization program description
- Insurance information
How Do California Home Care Organizations Renew Their License?
Prior to the license expiration date, the Home Care Services Bureau will send the organization instructions on how to renew their license. All California Home Care Organizations Licenses are valid for two years from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Home Care Organizations in California?
California requires all home care organizations to obtain liability insurance with the following minimum limits:
- $1 million per occurrence
- $3 million aggregate
Additionally, home care organizations must purchase and maintain a $10,000 surety bond.
How Do California Home Care Organizations File Their Bond?
Home care organizations should mail their completed bond form, including the power of attorney, to the following address:
California Department of Social Services
Home Care Services Bureau
744 P Street, M.S. 9-14-90
Sacramento, CA 95814
The surety bond requires signatures from both the surety company that issues the bond and from an owner/officer of the home care organization. The surety company should include the following information on the bond form:
- Legal name, address, and phone number of entity/individual(s) buying the bond
- Surety company’s name, address, and phone number
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can California Home Care Organizations Do to Avoid Claims Against Their Bonds?
To avoid claims on their bond, home care organizations in California must ensure that their home care aid employees do not steal from the consumers that they serve.
What Other Insurance Products Can Agents Offer Home Care Organizations in California?
California requires home care organizations to purchase liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for California Home Care Organization Customers?
California conveniently provides a public database to search for licensed home care organizations in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.