Insurance for New Care Providers: Step-by-Step Guide

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A clear, practical guide to arranging insurance for new domiciliary care providers from pre-registration through to your first CQC inspection.

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We work with leading insurers for start-up and growing care providers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

Insurance for New Domiciliary Care Providers

Setting up a new home care service is exciting – but the registration process, contracts and compliance requirements can feel overwhelming. Insurance is a key part of that picture. Commissioners, CQC and families all expect you to have appropriate cover in place before you start providing care.

This step-by-step guide explains the main types of insurance new care providers typically need, when to arrange them, and how Insure24 can help you move from planning to trading with confidence.

Who is this guide for?

  • New domiciliary care agencies applying for CQC registration
  • Start-up home care franchises and branches
  • Existing providers expanding into domiciliary care
  • Micro-providers formalising and registering their service
  • Care professionals planning their first regulated service

How this helps new providers

  • Clarifies which insurance covers are genuinely essential
  • Explains when to arrange insurance during your CQC journey
  • Helps you budget for start-up insurance costs
  • Supports your business plan, policies and registration documents
  • Gives you access to care-sector insurance specialists
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What Insurance Do New Care Providers Need?

Public & Treatment Liability

Core protection if service users, families or members of the public allege injury or property damage arising from your care activities. This is usually the foundation of a domiciliary care insurance programme.

  • Personal care, moving & handling, medication and clinical tasks
  • Accidents in service users’ homes or in the community
  • Options for higher limits to meet commissioner requirements

Professional Indemnity

Covers allegations that your professional advice, assessments or care planning caused harm or financial loss. Particularly important where you complete care plans, risk assessments and complex care packages.

  • Care planning, assessments and reviews
  • Advice provided to service users and families
  • Support around medication, nutrition and risk management

Employer’s Liability

A legal requirement for most providers once you employ staff. Covers claims from employees who are injured or become ill as a result of their work.

  • Care workers injured during moving & handling
  • Staff incidents while travelling between visits
  • Cover for permanent, part-time and bank staff

Other Covers to Consider

Depending on your business model and commissioner requirements, you may also need:

  • Management liability (Directors’ & Officers’ cover)
  • GDPR & data protection / cyber insurance
  • Office and contents cover (even if home-based initially)
  • Motor and business use cover for company vehicles
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Insurance & Your CQC Registration Journey

New providers often ask, “Do I need insurance before I’m registered?” and “What evidence will CQC expect?” While every situation is different, there are common milestones where arranging cover becomes important.

When to Arrange Insurance

  • Business planning stage: Get indicative costs to support your financial forecast.
  • Pre-registration: Discuss the cover you’ll need once you start trading.
  • Post-registration / pre-go-live: Put full cover in place before delivering regulated activity.
  • First contracts: Check limits and wordings against commissioner requirements.

How Insurance Supports CQC Expectations

  • Demonstrates you have suitable indemnity arrangements in place
  • Supports “safe” and “well-led” domains through risk management
  • Policy documents can be referenced in your Statement of Purpose
  • Shows commissioners you are serious about governance and protection
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Step-by-Step: Arranging Insurance for a New Care Provider

  1. Clarify your service model: Define which services you’ll offer (e.g. personal care only, complex care, live-in, supported living).
  2. Gather key information: Business structure, anticipated turnover, staffing model and projected care hours.
  3. Identify commissioner requirements: Check tender, contract or framework documents for specific insurance limits.
  4. Discuss your plans with a specialist broker: Talk through your model, risk controls and timescales.
  5. Put cover in place before go-live: Ensure policies start before you deliver any regulated activity.

Information We Typically Ask New Providers For

  • Business plan and overview of your proposed service
  • Estimated year-one turnover and growth assumptions
  • Number of staff and roles (including registered manager)
  • Types of needs you plan to support (e.g. older people, dementia, LD, complex care)
  • Any previous claims or relevant experience from directors or managers
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“As a brand-new home care provider, we weren’t sure where to start with insurance. Insure24 talked us through the options, helped us budget and made sure our cover was in place before our first package of care.”

Registered Manager, New Domiciliary Care Agency

FREQUENTLY ASKED QUESTIONS FOR NEW CARE PROVIDERS

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Do I need insurance before my CQC registration is approved?

You do not usually need full operational cover while you are still in the application stage and not providing care. However, you should have a clear plan and indicative terms in place, and full policies should start before you deliver any regulated activity or take on your first package of care.

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Which insurance covers are essential for a new domiciliary care agency?

Most new providers will need public and treatment liability, professional indemnity and employer’s liability as a minimum. Additional covers such as management liability, GDPR/cyber and office cover may also be appropriate depending on your structure and contracts.

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What insurance limits do commissioners usually expect?

Requirements vary by local authority and NHS body, but it is common to see public and treatment liability limits of £5 million or higher, together with employer’s liability at £10 million. We will review your tender or contract documents and recommend limits accordingly.

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How much does insurance cost for a new care provider?

Premiums depend on your projected turnover, services offered, planned staffing levels and experience. We work with multiple insurers who are comfortable with start-ups and can often spread premium payments to support cash flow.

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What if I change my service model after registration?

It’s common for new providers to refine their model in the first year. If you expand into new service types or higher-risk activities, we can review your policy mid-term and adjust cover so it stays aligned with what you actually do.

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How does insurance link to my Statement of Purpose and policies?

Your Statement of Purpose and core policies describe the services you provide and how you manage risk. Insurance should mirror that model. We encourage new providers to share draft documents so we can ensure cover matches your regulated activities.

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Does past experience as a manager or nurse help with insurance?

Yes. Underwriters look favourably on providers led by experienced registered managers, nurses or senior care professionals. Your track record can support better terms, even if the business itself is newly registered.

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Can I arrange insurance if I don’t yet know my exact turnover?

Yes. For start-ups, we usually work with realistic estimates based on your business plan. These can be reviewed and adjusted at renewal or earlier if your growth is significantly different from plan.

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Will insurance help me win contracts as a new provider?

Insurance alone will not secure contracts, but having appropriate cover in place – with limits that meet tender requirements – is often a basic gateway condition. Being able to evidence robust insurance can strengthen your overall submission.

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How do I get started with Insure24 as a new care provider?

Simply call Insure24 on 0330 127 2333 or start your enquiry online. We will talk through your plans, explain your options in plain language and help you build an insurance programme that grows with your new care business.
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