Do I need insurance for household employees?

Who's considered a household or domestic employee?

Simply put, a household or domestic employee is a person who is paid to provide a service at their employer's private home. This can include full and part-time employees.¹

Examples of household employees can include

• Babysitters
• Caretakers
• Cleaning people
• Domestic workers
• Drivers
• Health aides
• Housekeepers
• Maids
• Nannies
• Private nurses²

Do I need insurance for people who work in my home?

In general, it's recommended to have insurance for people who work in your home. How, and where you get insurance can vary with some things based on your state and company as some

• Require employers with household employees to have some type of liability or workers' comp
• Specifically exclue insurance for domestic employees on homeowners policies
• Require coverage if you have a certain number of workers³

Make sure to check your state laws to see what you're required to have.

What about contractors who do work in my home?

In general, a self-employed person who works at your house with their own equipment is considered an independent business and not a household employee.

Examples can include

• Electricians
• Carpenters
• Landscapers, etc.

What does insurance for residence employees cover?

Common insurance for household employees can cover⁴

• Personal Liability: This helps protect employers against negligence claims if a worker is injured while on the job.
• Employment-related claims: Protects employers who are accused of employment-related claims like discrimination, wrongful termination, and sexual harassment.
• Damage to property: Covers the cost of repairs or the replacement of an employer's property if a domestic worker accidentally damages property while performing their regular duties.
• Workers' compensation: Provides coverage for medical care and physical rehabilitation for an employee who is injured while on the job. It also covers lost wages for the employee if they're injured and unable to work, as well as a death benefit.⁵

Does my homeowners, condo, or renters policy provide any coverage for my household employee?

How much coverage you may have with your homeowners, condo, or renters insurance for a household worker depends on your policy.

In general, homeowners policies typically exclude coverage for domestic employees if they're required by law to be covered under a workers' compensation policy. However, if you ahve a domestic worker that only works in your home on an occasional basis, he or she may be covered under your homeowners policy. Regular and/or full-time employees should be able to be added to your home insurance policy by contracting your insurance company.

Depending on your currnet home insurance policy's limits, as well as your assets, you may want to talk with your insurance company about an umbrella policy that can provide you with more protection above your current limits.

What if I have staff that live in my home?

Having live-in workers may require additional insurance to provide you with specific protection against liablity risks. If you have live-in domestic staff, be sure to fully understand what is and isn't covered under your existing homeowners, condo, or renters policy, as well as limits. If you're in-doubt about whether or not your household employee in covered under your insurance, its's best to talk to your insurance company to understand your options.