Protect yourself from accidental expenses
Learn how to protect yourself and your nanny in case of an injury and see if your State requires worker’s compensation insurance.
Protect yourself and your nanny
As an employer, you are potentially liable for any injuries suffered by your nanny while on the job. There are two main options for protecting yourself and your nanny from the expense of a work related accident: homeowner/renter’s insurance and worker’s compensation insurance. Each state has different regulations, with some states requiring worker’s comp for nannies, while other make it voluntary. See below if your State requires worker’s comp insurance.
After reading about another expense involved with paying above the table, you may be questioning your decision. Keep in mind, this is one of ways people get into real trouble. All it takes is for your nanny to slip at your house and hurt her back. You’re on the hook for all of her medical expense and face the risk of heavy fines if worker’s compensation insurance was required. Plus, there is the likelihood of also being reported to the IRS for failure to pay employment taxes.
Homeowner’s and Renter’s Insurance
Most homeowner’s and renter’s insurance policies include personal liability and medical payments coverage. The liability coverage can protect you against claims and lawsuits if your nanny is injured at your home. Medical payments coverage will help pay the medical expenses of anyone hurt on your property, regardless of fault. Whether you need worker’s compensation insurance or not, you should contact your homeowner/renter’s insurance provider to discuss your liability and no-fault medical coverage. As a general rule, you want enough liability coverage to protect all of your financial assets. Umbrella policies can provide extra coverage for those with assets beyond what their existing policy will cover. It may also be wise to increase medical coverage beyond the standard $1,000. These policies are generally the least expensive way to insure against potential expenses.
Worker’s Compensation Insurance
Worker’s compensation insurance provides similar protections to you and increased benefits to your nanny. Benefits include medical expenses, death benefits, lost wages, and vocational rehabilitation. As a result, worker’s compensation insurance can be more expensive. In most states you can buy the insurance, if required, from a commercial insurance company. However, if you live in Ohio or Washington, you can only purchase the coverage from a state-run fund which tend to be the most expensive. Check the list below to see if your State requires worker’s comp insurance. You’ll need to follow the link to the worker’s compensation website for your State.
| Required for full- and part-time nannies in: | Required for full-time nannies only in: | ||
|---|---|---|---|
If your state is not listed above, then you are not required to purchase worker’s compensation insurance. But again, make sure you have adequate coverage from your homeowner/renter’s policy.
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