By Thomas A. Parmalee
When home care agency owners think about insurance, they often picture policies and premiums. But for Joe Schaffner, a veteran insurance broker with 25 years of experience, it’s about something much bigger: protecting people, strengthening businesses and building long-term sustainability in an industry that serves one of society’s most vulnerable populations.
For more than two decades, Schaffner (pictured at top), who is a producer with INSPRO, a MarshMcLennan Agency, has devoted his career exclusively to nonmedical home care agencies, partnering with franchisees and independent owners across the country.
Endorsed by more than 15 franchise organizations and trusted by thousands of agency leaders, he has built what many consider the most comprehensive, cost-effective insurance and risk management program in the industry.
In this conversation with the Home Care Post, Schaffner shares why he’s stayed committed to home care for so long, the biggest risk management mistakes owners make, and why he believes prioritizing caregivers is the ultimate path to stronger agencies, happier clients, and more profitable businesses.
First, tell us a little bit about yourself.
I have been working as an insurance agent/broker for 25 years with an exclusive focus on nonmedical homecare agencies. I have been endorsed by over 15 different home care franchise organizations and have worked personally with thousands of individual owners, both franchise and independent. I have developed the most cost effective, comprehensive insurance and risk management program in the industry.
You have been serving home care professionals for more than 20 years. What has kept you in this space for so long?
First, I was able to develop a customized program for homecare owners, and not only do I love helping them secure the most cost-effective coverage, but I assist them with managing risk to higher profitability. I believe I have taken a unique approach that focuses on the value of caregiver recruitment and retention and how that impacts all facets of the business. This is an ever-evolving industry, and our senior population is continuing to grow, with more of them wanting to stay in their homes longer. Outside of the clients I serve, the most important aspect of my homecare insurance program is the team I have assembled. They are dedicated exclusively to the clients we serve – and their expertise and customer service are second to none.
Do you work mostly with independent agencies or franchisees – and how do their individual needs vary, if at all?
While most of my clients are part of a larger franchise system, we know our insurance program is customized to meet the exact needs of both franchise and independent owners from coast to coast in all 50 states. Whether you are independent or a franchise, they all have a responsibility to not only protect the assets of the company but make sure you are compliant with all state laws and insurance requirements. The value of insurance is that it truly protects all parties involved in the client service agreement; the client, the caregiver/aide and of course the homecare agency.
What are some common mistakes home care agency owners make when it comes to managing risk?
As you can imagine, managing risk is more than just simply procuring the necessary insurance to adequately protect your homecare agency. Insurance is merely a mechanism to protect the financial assets of the agency and just the beginning to managing risk as a homecare owner.
- Homecare owners and agencies need caregivers more than caregivers need them; therefore, the caregiver should be the priority of the owner, and in turn, the caregiver will make the client their priority.
- Caregiver turnover affects every team member from the marketer to the scheduler, the care coordinator and of course ownership – nobody likes turnover. Those agencies that prioritize reducing turnover are a better risk and ultimately grow faster and that growth is more sustainable.
- You and your staff do NOT take care of seniors – you take care of caregivers that take care of seniors. Those who recognize that and do it better than their competition make more money. There is nothing wrong with wanting to make more money – that simply means you are taking better care of your community and the people who reside in it.
- Non-owned auto liability applies to more than just the transportation of the client. It includes anytime an employee is driving while working/being paid.
Do most home care agency owners treat their employees as well as they should?
That is a difficult question to answer from my perspective, but I can assure you the data shows that caregivers do not feel as though they are treated as well as they should be. Whether that is factual or not may not be as important as how caregivers feel they are treated. The perception of the caregiver is 100% of their reality. Even many owners that I have spoken with acknowledged that their caregivers believe the client is more important than them and as a significant percentage. Those agencies that can flip the perception will again grow faster and that growth will be more sustainable. Creating a culture that is caregiver centric will reduce turnover and allow for the growth you are looking for. The number of people needing care is growing at the highest rate ever with every baby boomer being at retirement age by 2030. The number of homecare agencies continues to grow, but what is not growing at nearly the same rate is the number of caregivers. The fact remains that there are more people needing care than the caregivers who provide that care and that spread will continue to grow.
How did the COVID-19 pandemic affect the home care community?
If we learned anything from COVID, it is that our non-medical homecare aides are an essential part of our health care system – especially in times of crisis. The pandemic and the culture it created empowered caregivers by increasing the awareness of their value to the elderly community. Those agencies that value caregivers and what they mean to this industry are the agencies that will grow and flourish even through a pandemic or another unpredictable event.
What’s the most common insurance claim you see as it relates to home care agency policies, and what are some of your suggestions to minimize such claims?
The most common claim is caregiver workers’ comp injury, which is potentially the costliest. Keeping caregivers safe and out of harm’s way should be at the top of any care plan. With that said, all claims can be costly in their own way, from theft of a client’s property to non-owned auto liability claims, and of course, the workers’ compensation. Retention has a huge impact on incidents and or claims. Statistically, it shows that if you can retain a caregiver for longer than six months, they are 75% less likely to have a claim or incident of any kind. Not only does retention affect growth, but it is also a huge component of your overall risk profile. One of the most impactful areas of risk management is how an incident/claim is handled once it has been identified.
What are a few things home care agency owners can do to differentiate themselves from competitors?
The number one way to differentiate yourself from your competitors is who you hire and how you treat your employees. Your employees and are your brand are far more important than any advertising, marketing or social media presence you may have. The care plan is simply words on a piece of paper until a caregiver executes the plan.
What makes you different from others that help home care agencies with their insurance needs?
I truly love what I do, and for the past 20 years, I have been working exclusively with home care owners and their agencies to secure the most cost-effective insurance as efficiently as possible. I make myself available 24 hours a day, seven days a week to provide the highest level of customer service with unique expertise to help my clients manage risk to higher profits. I have helped thousands of owners reduce their costs while securing the most comprehensive coverage available. My program offers all lines of coverage for any home care agency nationwide.
