Client Property Theft and Caregiver Theft Insurance for South Carolina Home Care Agencies

This coverage is a must for home-based care, and for every franchise and independent home care agency licensed in South Carolina.

Caregivers working in private homes bring a theft exposure into every one of them. When clients have memory loss or cognitive impairment, accusations of theft may surface even when nothing was taken. A South Carolina agency staffing caregivers who work alone in client homes may face this exposure on each shift.

The Problem With a Bond’s Conviction Clause, and the Case for Mysterious Disappearance Coverage

In some states, licensing requires a bond to cover property taken by caregivers. A bond has one major flaw: a conviction clause. Unless the caregiver is proven to have taken the property beyond a reasonable doubt and is convicted, the bond does not pay. Proof like that may be close to impossible in home care. The client may be unable to recall whether they gave the item away or lost it, and many visitors pass through a home receiving care.

So we sell third-party theft coverage that includes mysterious disappearance, written to respond in the circumstances that are routine in home care. Chamberlin & Reinheimer understands this from years spent in the industry.

South Carolina licensing does not require a theft bond. It does require liability insurance of at least $100,000 per occurrence and $300,000 aggregate, or a surety bond in its place, plus indemnity coverage to compensate clients for injuries and losses resulting from services. A franchisor or referral source asking a South Carolina agency for proof of theft coverage is almost always asking for this policy rather than a bond.

Goodwill Client Hours

Even without solid proof of caregiver theft, an agency may pay a client to smooth things over and keep their business. This coverage can help in those cases.

Third-party theft responds to theft by an employee, whether acting alone or with others. Limits depend on the policy, generally $25,000 to $100,000, subject to a $500 to $1,000 deductible.