Nanny question - do you require your nanny to have personal liability insurance?

Jbunny100 · September 2014

We hired a woman to come help out 12 hours a week. I am finalizing her contract now and DH starting asking me about personal liability insurance for her. I asked around and no one else has this. Do any of you ladies with nannies have this or require it? TYIA for your help.

MrMrsandBaby · September 2014

Don't have a nanny but I remember researching for DD and very few compannies actually offer this type of insurance specifically for care providers. I think it is a bit much to ask - the cost can be pretty high.

trisharenee0316 · September 2014

I've never heard of that.

But do make sure that your household insurance policies are updated to reflect having a domestic employee.

bennikki · September 2014

In our state (MN), it depends on how you are planning on paying her.

If you are going to be paying him/her as an employee of your household with an actual paycheck where you take federal, state, social security, and medicare out, you would need to carry a work comp policy on him/her, and you would give them a W-2 at the end of the year.

If you are going to pay the nanny like you would a sub-contractor, meaning you aren't taking any taxes out, then they should be carrying their own personal liability insurance, and you would give them a 1099 at the end of the year. I don't know if that's the case in your state, but we had a client a few years back that got audited because of their nanny and the way they were paying them.

Either way, you're going to want to be checking on what your insurance covers to make sure domestic workers/nannies have coverage under your homeowners insurance because you don't want the worker to get hurt on the property or something to happen to your property as a result of the worker and not have it covered by insurance.

trisharenee0316 · September 2014

A nanny is not an independent contractor and should not be given a 1099. A nanny is an employee. A cursory glance at the IRS test for an employee vs independent contractor make it pretty clear that a nanny would be considered an employee. The nanny cannot set his/her own work hours, is not employed for one set task, and is bound by certain rules you set.

This explains things pretty clearly: https://www.care.com/a/whats-wrong-with-hiring-my-nanny-as-an-independent-contractor-1212110431

futuremrsnjoroge · September 2014

I've drafted a form that basically releases me of liability if she is injured or something while in my home, vehicle, transporting my child, or running errands (along with a non-disclosure). She's also on MY insurance. IDK what personal liability insurance is, so I'm gonna say she doesn't have that.

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Nanny question - do you require your nanny to have personal liability insurance?

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