Do You Have to Provide Workers' Comp for Your Nanny?
When you hire a nanny, it is imperative to think of this person as more than a helper around the house. You are now this person’s employer. For this reason, you are responsible for a variety of HR-related tasks, including but not limited to insurance, payroll, and taxes.
Before you ever hire a nanny, you need to consider what this will mean from an insurance point of view. For the sake of this article, we are going to focus on workers' compensation insurance.
Some states require that employers purchase workers' compensation insurance, but others do not. Even if you aren't required by law to purchase coverage, it is a good idea to do so. It is easy to talk yourself into thinking this is a waste of money. It is easy to believe that your nanny will never become injured on the job. If you fight the urge to buy, it could come back to haunt you in the future.
A nanny can suffer many types of injuries on the job. For example, he or she could trip while leaving your home. Or maybe your usually friendly dog decides to bite your nanny, causing a serious injury that requires medical attention and time off.
Note: if you don't have workers' compensation insurance, you can be held personally liable for any damages.
Benefits for the Employer and Nanny
Think about it this way: workers' compensation insurance is a benefit for both the employer (you) and the employee (your nanny). This protects you from a lawsuit and personal liability. At the same time, it gives your nanny access to benefits in the event of an on the job injury or illness.
If you are in the process of hiring a nanny, don't hesitate to search for an affordable workers' compensation insurance policy. In many cases, this coverage can be added to a home or renter's insurance policy, making it simple to get what you need. If this isn't an option, there are workers' compensation insurance companies that specialize in this type of policy.
Depending on your state, you may or may not need to provide workers' compensation insurance for your nanny. The law may not require it where you live, but you should consider the benefits of buying a policy nonetheless. It is better to be safe than sorry!