When it comes to work related injury or illness, workers’ compensation insurance helps protect household employers from risk.
The facts are compelling. American employers suffer nearly 3 million injuries and nonfatal illnesses annually according to the Bureau of Labor Statistics, with average payouts ranging from $89,152 for motor vehicle-related injuries to $49,971 for slip-and-falls to $36,200 for strains.
The figures are daunting.
Thanks to workers’ compensation insurance, household employers don’t have to face risk alone. Check out answers to these frequently asked questions.
What is a Household Employer?
According to the IRS, household workers are your employees if you can control the work they do and how they do it. Household workers could include a full-time, part-time or seasonal nanny, regularly scheduled babysitter, eldercare or specialty caregiver, afterschool tutor or home education teacher, or other home-based professional.
What is Worker's Compensation Insurance?
Workers’ compensation insurance can help cover household employees who experience a work-related injury or illness. Workers’ compensation creates a financial and legal safety net for household employers, employees and their families.
If you don’t have workers’ compensation insurance, you may be liable to pay costs associated with these scenarios and others:
- An eldercare aide suffered injury in a car accident while running an errand at your request.
- The nanny trips over a toy and fractures an ankle at your house.
- Your gardener suffers a deep laceration working in your garden.
- Your personal chef develops carpal tunnel on the job and needs surgery and time off to recover.
In these cases, workers’ compensation insurance coverage helps the employee with medical costs associated with work-related injuries, plus a portion of lost wages if time off from work is necessary.
Do I Really Need to Carry Workers’ Compensation Insurance?
Workers’ compensation insurance is typically required by law in almost every state. Certain household employers may be exempt in some states; however, voluntary coverage is also available. Operating without workers’ compensation coverage, even if not required, does not remove employer liability if your household employee sustains a work-related injury or illness.
Doesn’t My Homeowner’s Insurance Cover My Household Employee in the Event of an Accident?
Homeowners insurance is not designed to cover household employees. It may, for example, protect you in the event a visitor becomes injured on your property if the injury was due to your negligence.
What Happens if I Don’t Get Workers’ Comp?
Household employers run the risk of fines, lawsuits and potentially jail for operating without workers’ compensation where it’s required. Even if you avoid legal troubles and penalties, work-related injuries and illnesses can impact your household budget dramatically.
Consider these average workers’ compensation payouts from the National Council on Compensation Insurance and decide if operating without adequate coverage is worth the risk:
- Motor vehicle: $89,152
- Burn: $52,161
- Slip and fall: $49,971
- Strain: $36,200
- Cut: $24,250
What Should I Look for in a Workers’ Comp Insurance Provider?
Whether you’re seeking workers’ compensation coverage for your nanny, elder caregiver or other home-based employee, it’s important to consider the qualities most important to you. While providers may all seem the same, there are important distinctions.
Do I Need Additional Household Insurance Coverage?
From a business owner policy (BOP) to employment practices liability insurance (EPLI), there are a variety of policies that are designed to protect you, your property and household from financial loss and legal liability in the event of an accident, crisis or catastrophic event.
Your unique situation determines the specific combination of insurance that will best meet your needs. Many households underestimate their risk, and as a result they choose to opt out of important insurance coverage.
Bottom Line: Minimize Risk, Maximize Protection.
Protect your business and household with the same insurance carriers trusted by Fortune 500 companies. Paychex Insurance Agency brings you SureProtect, in collaboration with Huckleberry by Paychex, to provide insurance solutions for small businesses and households.
Get your competitive insurance quote today.
Bottom Line
SureProtect offers a full spectrum of insurance solutions, customized to meet your needs. The distinct advantages of SureProtect include:
- Easy Selection and Convenience. Compare a wide range of policies from industry-leading insurance carriers, get same-day business insurance quotes online, and purchase coverage with the click of a button.
- Prompt, Knowledgeable Support. Connect with your personal insurance agent for fast, accurate answers to your questions.
- Simple and Flexible. Easily make changes to your insurance coverage as your household needs change.
- Instant-Access Documentation. View and download your certificate of insurance and more online at your convenience.
3 Steps to Get Started.
SureProtect makes getting started easy:
- Complete an online application
- Review competitive workers’ comp insurance quotes from the top insurance companies
- Choose your workers’ comp insurance policy and purchase it without delay
Wondering about Nanny Tax and Payroll?
Check out our Guide to Nanny Taxes and see how using our payroll service can save you time and money.
Insurance is sold and serviced by Paychex Insurance Agency, Inc., 225 Kenneth Dr., Rochester, NY 14623. CA License #0C28207.
