With working parents, busy schedules, and stress, parents are constantly faced with the dilemma of finding childcare. For some, hiring a nanny to provide care in the home becomes the best option. Many opt out of using a professional nanny service due to added costs, and instead hire a nanny directly. If you don’t consider the exposures caused by employing a nanny or household staff, you may be putting yourself at greater risk.
Employment Practices Liability
Discrimination, wrongful termination, harassment, bodily injury, privacy breaches. Nannies and household staff can sue employers for these claims. Your personal liability coverage does not typically cover these issues unless your policy has a specific endorsement. A separate employment practices liability policy can help provide broad coverage and high limits to protect you from these types of exposures.
Workers’ Compensation
Your nanny takes your child to the park and gets bitten by a dog. Going up and down the stairs in your house, your nanny trips and gets injured. Driving the kids to sports practice and the nanny gets hurt in a car accident. These are all examples of workplace injuries. Without workers’ compensation coverage you may be exposing your family to the risk of handling significant medical costs and lost wages for the nanny.
Workers’ compensation regulations vary by state. Care.com provides resources for requirements in each state. It is important to review the laws and regulations as there may be significant fines for not complying.
Car Insurance
Does your nanny drive your kids? In your car or the nanny’s car?
If your nanny is driving your car…
Have you discussed with your insurance advisor adding the nanny to your policy? Otherwise, if the nanny is driving your car and gets into an accident, your policy may not cover it.
If your nanny is driving their own car…
Do you know what auto insurance coverage your nanny has? What if they have minimum coverage limits, will that be enough to cover injuries if they were to cause an accident with your children in the car? Does she/he need to notify their insurance company that the vehicle is being used for “business use”? For more insight into the issues related to using cars for business use and common coverage gaps, check out our blog on the topic.
Don’t expose your family and your nanny to unnecessary risks. Consider these items to ensure you will be appropriately protected.
