How Could Having A Nanny Affect My Insurance?

Hiring household assistance (also known as domestic workers) can affect certain policy aspects, particularly if the individual you hire is deemed an employee by the state. State regulations are typically fairly specific regarding what determines employee status, although each state is different. A brief phone call to your state's labor department will provide you with the state's regulations.

Why does the number of hours an employee works matter? There are numerous insurance policies with varying coverage for technically considered employees. Your personal auto policy may cover your nanny if she occasionally drives the children. Still, if her work hours constitute her an employee in the eyes of your state, your policy may exclude bodily harm coverage for her (because workers' compensation should cover employees).

What Might My Policy Change?

Your homeowner's insurance policy will typically cover visitors and the occasional babysitter. It is prudent, however, to inform your insurance company if you intend to hire someone to be with you or reside at your residence on a regular basis.

Typically, a larger umbrella policy (check to see if it must specify household employees) will cover you in the event of an accident; however, as Blizzard notes, you must ensure that your underlying coverage is sufficient to qualify for an umbrella policy.

What Will Occur If She Is Injured?

What if your nanny twists her ankle while supervising the children at the pool or while transporting them to soccer? You may be accountable for her medical expenditures and maybe even missed pay if you do not have the appropriate insurance.

States' criteria for coverage vary greatly, and some states do not require it at all. Whether or whether it is required, it is an essential layer of security for your family.