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About Household Employee Workers Compensation Insurance
Nanny workers compensation insurance protects the caregiver and the employer from the expenses and liabilities associated with a work-related accident. A single accident can leave the household employer liable for thousands of dollars in medical bills. Don’t assume that this liability is covered under your Homeowner’s Insurance Policy!
Most states require household employers to carry Workers’ Compensation insurance for their household employees such as a nanny, senior caregiver or housekeeper. This insurance will reimburse an employee who was injured on the job for qualifying medical expenses and lost wages. If you don’t have a workers’ compensation insurance policy, you may be personally liable for your injured employee’s expenses. Perhaps more importantly, workers’ compensation insurance affords you legal protection because when an employee accepts benefits, he or she generally forfeits their right to sue you, the employer, regardless of fault.
Obtaining Nanny Workers’ Compensation Insurance: To be clear, workers’ compensation insurance is an insurance policy, not a tax. As such, it must be managed by a state-licensed insurance broker. Typically this nanny insurance is available through commercial ensurers, but some state funds exist as a provider of last resort where coverage is required by law. State funds are typically the most expensive method of obtaining coverage, as they must ensure all applicants, regardless of risk.
HWS has an exclusive insurance partner who will help clients easily obtain affordable workers’ compensation insurance coverage. HWS clients can receive a free quote for household employer workers’ compensation insurance. Contact us for more details.”
Our guides for household employment laws by state provide information and links for Workers’ Compensation Insurance in each state. The chart below is intended for informational purposes only, and is not specific legal or insurance advice. HWS strongly recommends all household employers speak to a licensed insurance agent and purchase this insurance when available.
*Household employers may also need to update automobile insurance if a household employee drives their personal vehicle. Be sure to check with your insurance agent about coverage.
Where Household Employers Need Workers’ Compensation Insurance
STATE
REQUIRED FULL TIME
REQUIRED PART TIME
VOLUNTARY COVERAGE
NOTES
Alaska
Yes
Yes
Alabama
Yes
Arizona
Yes
Arkansas
Yes
California
Yes
Yes
Working 52 or more hours per quarter. Typically obtained as a rider on the employer’s homeowner’s insurance – talk to your licensed agent.
Colorado
Yes
Regularly working 40 or more hours per week.
Connecticut
Yes
Yes
Regularly working 26 or more hours per week.
Delaware
Yes
Yes
Earning $750 or more per quarter.
District of Columbia
Yes
Yes
Working 240 hours or more per quarter.
Florida
Yes
Required if employing 4 or more full or part time employees.
Georgia
Yes
Required if employing 3 or more full or part time employees.
Hawaii
Yes
Yes
Earning $225 or more per quarter.
Idaho
Yes
Illinois
Yes
Regularly work 40 or more hours per week.
Indiana
Yes
Iowa
Yes
Yes
Earning $1500 or more per year.
Kansas
Yes
Yes
Total gross wages to all employees $20,000 or more per year.
Kentucky
Yes
Required if 2 or more full or part time household employees.
Louisiana
Yes
Maine
Yes
Maryland
Yes
Yes
All employers subject to Maryland Unemployment Insurance.
Massachusetts
Yes
Yes
Regularly working 16 or more hours per week.
Michigan
Yes
Regularly working 35 hours or more per week.
Minnesota
Yes
Yes
All employers subject to Minnesota Unemployment Insurance.
Mississippi
Yes
Required if 5 or more full and part time household employees.
We strongly recommend that you discuss your situation and your state’s insurance regulations with a licensed insurance agent. HomeWork Solutions’ household payroll professionals are not qualified to discuss specific insurance issues and will direct clients to our licensed insurance partner. We are happy to make referral of clients to our trusted insurance partner.
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