Parents don’t often consider Worker’s Compensation Insurance for their Nanny. They either don’t realize they can be held liable for the cost of an injury if their Nanny gets hurt on the job or they expect she is covered under their homeowner or renter’s insurance policy. Unfortunately, this is not always true. The U.S. Department of Labor requires compulsory worker’s compensation coverage for Nannies working in 26 states. The extent of compulsory coverage differs by jurisdiction. For example in California anyone who cares for and supervises children and earned $100 or more within the previous 90 days from the date of injury must be covered under Worker’s Compensation.
Parents can obtain Worker’s Compensation coverage for their Nanny by adding a rider to their homeowner or renter’s insurance policy for an average cost of $150 annually. A Nanny does not need documentation to be covered under the policy since the insurance company is private. Equally, a Nanny does not need documentation to sue a family for an on-the-job injury – or to be awarded the claim if the judge determines it is valid.
Please the U.S. Department of Labor web site for information on state Worker’s Compensation laws and the extent of compulsory coverage in these states.