Dear Westside Nannies,
We are having a really difficult time securing nanny workers comp insurance for our nanny. I believe it is required, but I’m struggling to find a provider that can help. I’ve reached out to a few companies, but with everything going on in the insurance market right now, I keep hitting dead ends. I want to make sure we are compliant and that our nanny is covered in case of an accident, but I don’t know where to turn. Do you have any advice on how to navigate this process?
Sincerely,
A Concerned Nanny Employer
Thank you for reaching out with this important question. You’re not alone. Many families find workers’ compensation insurance confusing and challenging to understand, especially considering the current insurance market. We know how frustrating it can be to secure the right policy and make sure you have everything in place. Let’s break it down so you know what’s required and understand how to navigate the process.
1) What is Nanny Workers Comp Insurance, and Why Do Families Need It?
Nanny workers comp insurance is designed to cover medical expenses and lost wages for employees who are injured while performing job-related duties. For families employing nannies, this means that if your nanny gets hurt while working in your home or while on the job with your children outside of the home, they could be eligible for coverage under your policy.
Most states require household employers to carry nanny workers comp insurance once they pay a nanny a certain amount in wages. The specifics vary by state, but in general, if you have a regular, full-time nanny, this insurance is mandatory. Failure to carry it can result in fines or liability for medical costs if an injury occurs.
2) Why is It So Hard to Get Nanny Workers Comp Insurance for Household Employees?
Lately, we’ve been hearing from families that they have encountered increased difficulties in obtaining nanny workers comp policies. Some of the reasons include:
- Limited Availability: Many insurance providers don’t offer standalone nanny workers comp policies for household employers, making it challenging to find a provider willing to issue a policy.
- Changing Insurance Market: Some states have seen carriers exit the household employer space due to regulatory changes or financial risk assessments.
- Lack of Awareness: Traditional insurance brokers may not be familiar with the specific needs of household employers, leading to misinformation or dead ends when searching for coverage.
3) How Can Families Secure a Nanny Workers Comp Policy?
If you’re struggling to find coverage, here are some steps to take:
- Check with Your Payroll Provider: Many nanny payroll services offer guidance or direct access to nanny workers comp policies. If you use a service like HomePay, GTM Payroll Services, or SurePayroll, reach out to see whether they can bundle nanny workers comp insurance with your payroll and tax filings.
- Contact Specialized Insurance Carriers: Some insurance companies specifically cater to household employers. Providers that have historically offered nanny workers comp policies for families include:
These providers may offer standalone policies or bundled options with other household employer coverage.
- Work with a Local Insurance Broker: If you’re having difficulty finding coverage, try reaching out to an independent insurance broker who specializes in nanny workers comp. They often have access to plans not readily available to individual policy seekers and can help you navigate state-specific requirements.
- Explore State Programs: Some states offer state-run nanny workers comp programs that provide coverage when private insurance options are limited. Check with your state’s Department of Labor or Workers’ Compensation Board to see if a government-backed option is available.
4) Final Thoughts
While the process may take some effort, ensuring you have proper nanny workers comp coverage will provide peace of mind for everyone involved.
If you have further questions, don’t hesitate to reach out to a household employment expert or legal professional for guidance specific to your state. Taking these proactive steps ensures you remain compliant with the law while also fostering a secure and professional working relationship with your nanny.