Between the busy work schedules of parents and kids doing remote learning from home, parents these days find it tough to supervise their children on a 24/7 basis. Many parents will hire a find extra help by hiring a nanny to watch after their children so that parents can focus their attention on work. Finding a qualified and reliable nanny or babysitter can be a challenge. Thankfully, there are nanny agencies that can connect families with a network of nannies to find a fit for families.
The main benefit of having a nanny can help offload some of the responsibilities of being a parent. But with more responsibility given to nannies comes more risk, and even the best nannies are prone to accidents. The right insurance option will help keep both nannies and the families covered in case of an accident.
When nannies are hired, what are some insurance options for parents and nannies? We outline some options and considerations for both parties.
Insurance Options For Parents
A family hiring a nanny to watch their children should know that insurance is not required; however, it is encouraged. Whether you’re hiring an in-house nanny or someone on a part-time basis, the right insurance will keep parents protected. While in-house nannies are more involved in taking care of your children and work on a full-time basis, part-time nannies could take on most, if not all, of the duties that a live-in nanny.
Here is a list of insurance options for families:
- Workers Compensation protects parents from injuries sustained by a nanny while they are looking after children. Without workers’ compensation, the nanny could sue the parents for any injuries they sustain in your home or while taking care of children. If this happens, the parents would be on the hook for covering medical bills, lost wages, and rehabilitation costs.
- Employment Practices Liability Insurance covers families from being sued by the nanny hired for alleged wrongful employment practices, including discrimination, sexual harassment, wrongful termination, emotional distress, invasion of privacy, and wage violations.
- Umbrella Insurance covers instances in which childen are hurt in an off-property accident. For instance, if a nanny brought your children to a park, this would cover a child injury sustained at a local park.
- Home Insurance covers anything that could go wrong in the house while a nanny is looking after your kids. This could include flooding and house fires, among other things.
- Auto Insurance covers anyone driving a family vehicle, including a nanny. Suppose the nanny plans to use a family vehicle to pick up the children consistently. In that case, you may want to consider adding them to your insurance policy and increase your liability coverage.
Insurance Options For Nannies
From the nannies’ perspective, insurance is a serious matter. While it is the sole responsibility for the well-being of the children you’re looking after, nannies are also putting themselves at risk while on the job. Having proper insurance is an essential business consideration that nannies shouldn’t overlook.
Hiring parents should hire full-time nannies as an employee, as opposed to an independent contractor. As a result, parents can pay for nannies’ insurance by withholding earnings.
However, if the hiring parents don’t offer nannies coverage, then nannies may want to look at getting their own coverage.
- Auto Insurance - Under some auto insurance policies, nannies may not be covered if an accident occurs while children are in the vehicle.
- Health Insurance - Working with children, nannies can be exposed to illnesses. Some nannies may be covered by their parents’ or spouses’ plan. In other instances, health insurance premiums can be paid for by their employing family.
- Worker Compensation - This policy protects nannies from financial losses if they are injured or become ill from a work-related cause. Because nannies are employed at the home of another family, homeowners insurance would not be adequate.
It’s much better to be prepared with the right insurance coverage. Finding an insurance option can help families and nannies protect themselves if an accident happens while providing both sides with peace of mind.
Whether you’re a nanny or a parent of a family that is looking to hire a nanny, contact Roger Butler Insurance. Our independent insurance agents have helped many Massachusetts nannies and parents, and the team is here to assist you.