Starting a domiciliary care agency can be a rewarding venture, offering essential support to individuals who wish to remain in their own homes while receiving care. However, it requires careful planning, compliance with regulations and a clear understanding of the industry.
Getting your Trinity Audio player ready...
null

This guide will walk you through some of the key steps to establish your own domiciliary care agency, supporting preparedness to succeed in this growing sector.

What is a domiciliary care agency?

Domiciliary care involves providing personal care and support services to individuals in their own homes. This type of care is tailored to meet the unique needs of each client, ranging from assistance with daily activities to specialised medical care. With an ageing population and increasing demand for home-based care, the domiciliary care sector offers significant opportunities for those looking to make a difference in their communities.

Step 1: Research and planning

Before diving into the domiciliary care industry, thorough research and planning are essential. Consider the following:

  • Market research: Understand the demand for domiciliary care services in your area. Identify your target audience, such as elderly individuals, people with disabilities or those recovering from illness.
  • Competitor analysis: Study existing domiciliary care agencies to identify gaps in the market and areas where you can differentiate your services.
  • Business plan: Develop a comprehensive business plan outlining your goals, target market, services, pricing structure and marketing strategy.
  • Start-up costs: Calculate your upfront costs and outgoings for your first year of trading, including equipment costs, recruitment costs, marketing investment, training requirements, business rates, annual CQC fees1, domiciliary care Insurance, (including public and employers' liability, and professional indemnity).
  • Financing options: Set up a business bank account for your home care agency and determine your financing source, whether personal funds, a start-up loan or a business loan.

Step 2: Registering your agency

To operate legally, your domiciliary care agency must be registered with the Care Quality Commission (CQC)2 in England or the equivalent regulatory body in your region. Registration is free, but an annual fee is required for ongoing monitoring. The registration process involves:

  • Demonstrating compliance with care standards and regulations
  • Appointing a registered manager with the necessary qualifications and experience
  • Submitting an application and undergoing an inspection by the regulatory body
  • Setting up your agency as a sole trader or a limited company, and registering your annual tax returns with HMRC

Step 3: Recruiting and training staff

Your staff are the backbone of your domiciliary care agency. Focus on recruiting individuals who are compassionate, reliable and qualified. Ensure they undergo:

  • Background checks: Conduct thorough DBS checks to ensure the safety of your clients. Applying for a countersigned DBS check: DBS checks3 are legally required for domiciliary care agencies, and employers must ensure they are up to date. Registered partners, managers or individual providers need an enhanced DBS check, no older than 12 months, for CQC registration. Non-registered healthcare professionals must apply for a CQC-countersigned enhanced DBS check (CQC-CE-DBS) for additional identity verification.
  • Training: Provide comprehensive training in areas such as first aid, safeguarding, and manual handling.
  • Ongoing development: Encourage continuous professional development to maintain high standards of care.

Step 4: Marketing your domiciliary care agency

Effective marketing is crucial to attract clients and grow your domiciliary care agency. Consider the following strategies:

  • Online presence: Create a professional website using a simple website builder or enlist the services of a local marketing agency for support.
  • Social media: Leverage platforms like Facebook and LinkedIn to connect with potential clients and share updates about your services.
  • Local networking: Build relationships with healthcare professionals, community organisations and local authorities to generate referrals.

Step 5: Delivering high-quality care

The success of your domiciliary care agency depends on the quality of care you provide. Focus on:

  • CQC Rating: Maintaining a strong Care Quality Commission (CQC) rating is vital for domiciliary care agencies, as it reflects safety and quality, impacting reputation, client acquisition, and staff retention. A 'Good' or 'Outstanding' rating builds trust, while 'Requires Improvement' or 'Inadequate' can harm reputation, reduce referrals, and increase oversight.
  • Personalised care plans: Tailor services to meet the unique needs and preferences of each client.
  • Regular feedback: Encourage clients and their families to provide feedback to continuously improve your services.
  • Compliance: Policies and procedures serve as internal guidelines for delivering services and must align with CQC regulations, legislation and best practices. Stay up-to-date with industry regulations and utilise online templates and toolkits to create comprehensive documentation, ensuring your agency operates to the highest standards.

The importance of domiciliary care insurance

Running a domiciliary care agency comes with unique risks and responsibilities. Domiciliary care insurance is essential to help protect your business, staff and clients. Here's why it's crucial:

  • Protecting your business: Insurance safeguards your agency from financial losses due to unforeseen incidents, such as accidents, property damage or legal claims.
  • Ensuring compliance: Certain types of insurance, such as employers' liability insurance, are legal requirements for businesses that employ staff.
  • Building trust: Having comprehensive insurance demonstrates your commitment to safety and professionalism, which can help build trust with clients and their families.

Domiciliary care insurance typically includes

  • Public liability insurance: Protects against claims from clients or third parties for injury or property damage.
  • Employers' liability insurance: Provides cover for claims from employees for workplace injuries or illnesses.
  • Medical malpractice insurance: protects healthcare professionals from claims of negligence, errors, or omissions that cause physical or mental harm to patients.
  • Professional indemnity insurance: Provides protection against claims related to professional advice or services.
  • Cyber insurance: Helps protect you from cyber risks, including ransomware attacks and social engineering.
  • Business interruption insurance: Helps cover lost income following physical damage to your property.

At Gallagher, we specialise in providing insurance solutions to domiciliary care providers that meet the unique needs of your business. Visit our web page to learn more and get a quote.

Sources

1 "Fees," Care Quality Commission, 14 May 2025.

2 "Register as a provider," Care Quality Commission, 25 Mar 2026.

3 "Guidance — DBS checks: guidance for employers," GOV. UK, 16 Jan 2026.

Disclaimer

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP527-2026 Exp. 30.03.2027.

Stay connected with the company that’s connecting the dots with what’s happening in the industry and around the world
Related Articles