6 Insurance Gaps That Put Maryland Disability Providers at Risk (And How to Fix Them)

When I meet new clients in the disability services space—group homes, in-home support agencies, adult day programs—I often find the same thing: big hearts, big missions… and big insurance gaps.

Some of these gaps are so serious that, if a claim hit, it could completely wipe out everything you’ve worked so hard to build.

So in this post, I want to walk you through the six most common insurance gaps I see among Maryland disability providers, give you the real-world scenarios where I see them show up, and help you understand what to look out for—and how to fix them.

1. Uncovered Operations

This one is a silent killer.

Let’s say you started as a home health agency or an in-home support agency. You picked up a general liability policy online. All good, right?

Then you started to grow—moved into group homes, started renting apartments, running 24/7 residential programs. But your insurance policy still says "home health agency," and if you read the fine print, it excludes residential operations.

That means everything you've built—your group home staff, your facilities, your services—might be completely uncovered. One claim, and you're out of pocket. It’s terrifying how often I see this.

✅ Fix it: Make sure your policy specifically covers the full scope of services you're currently providing, especially residential care.

2. No (or Inadequate) Abuse and Molestation Coverage

This gap is unfortunately all too common, especially for people who bought their policy online or are working with a broker who doesn't specialize in this space.

Sometimes I’ll see policies with no coverage at all for abuse and molestation claims. Other times, they carry a $25,000 sublimit. But let’s be real—attorneys can cost $500 an hour. That $25K? Gone before you blink.

And look, I hope you never need this coverage. But if you do, you’ll need a lot more than a token amount.

✅ Fix it: Review your abuse and molestation limits. You’ll likely need at least $1 million in coverage—and make sure there are no hidden exclusions.

3. Missing Employment Practices Liability Insurance (EPLI)

This one sneaks up on providers as they grow.

I’ve worked with clients who started out solo, bought their policy online, and now have 50+ caregivers under them. They’re hiring and firing all the time—but no one ever brought up EPLI.

What happens when a caregiver files a complaint? Says they were fired because of their age, race, gender, or disability status? You don’t just need protection—you need a good legal defense.

Even a basic discrimination claim could rack up tens of thousands in legal fees.

✅ Fix it: If you have employees, you need EPLI. The coverage seems expensive and unnecessary, until it’s not.

4. No Cyber Liability Coverage

"All my data is in the cloud." That’s the #1 reason I hear for skipping cyber insurance.

But here’s the truth: your people are your #1 vulnerability. And cybercriminals know it. Phishing attacks, stolen passwords, accidental data leaks—your third party data system isn’t going to take responsibility for any of that.  They’re going to say that you’re the one responsible for the leak, and you should fix it.

And the more your agency grows, the more sensitive data you’re storing— the bigger your exposure.

✅ Fix it: Talk to your broker about standalone cyber liability coverage that covers social engineering, ransomware, and breach response.

5. No Hired and Non-Owned Auto (HNOA) Coverage

If your caregivers use their own cars to visit clients, you need this coverage.

Most general liability policies and personal auto policies do not cover your business if a caregiver gets into an accident. If they’re uninsured, or if their license is suspended and they didn’t tell you—you're on the hook.

This is one of the most overlooked risks in the IDD and home care space.  So many care providers depend on employees to use their personal vehicles for in-home support programs, but do not take the appropriate precautions to protect the organization.

If you run this kind of programming, make sure to check for proof of auto liability insurance with a minimum of $100,000 Bodily Injury per person and $300,000 Bodily Injury per accident.

✅ Fix it: Add hired and non-owned auto coverage to your general liability or commercial auto policy. It's inexpensive and critical.

6. Missing Business Income and Extra Expense Coverage

If you run a group home or an adult daycare, think about how hard it was to get that property licensed and zoned.  How long did that take?  If you had to go through that process again at a new location, how long would that take?

Now imagine there's a fire. How long would it take to get a new space approved? The answer: way too long.

Without business income and extra expense coverage, you're losing net income, staff payroll, and ongoing expenses during that downtime.

✅ Fix it: Make sure your property policy includes enough business income and extra expense coverage to keep you afloat during a disruption.

Final Thoughts

If any of these sound familiar, you're not alone. I see these exact gaps all the time. They’re not your fault—but they’re your responsibility to fix.

You’ve worked too hard to build your organization to let one overlooked detail destroy it.

If you want to make sure your insurance program is actually protecting your mission, reach out. I’ll help you review your policy, find the gaps, and make sure your coverage matches the real work you're doing.

📞 Let’s talk: Complete the form at the bottom of this page letting me know you want to have a conversation.

And hey—if this article helped you, share it with another provider. You never know who might need it.

About the Author Daryl Henry is an insurance broker who helps Maryland disability service providers get the coverage they actually need to grow and stay protected.  He helps programs simplify insurance, avoid costly mistakes, and focus on what they do best—serving people.