Workers' Compensation Insurance protects the employer from liability for medical expenses and lost wages when an employee is injured "on the job." A recent news story concerning a Chicago nanny who was struck by a vehicle while walking her charge brings to light the awesome risk that nanny employers run when they don't obtain state required workers compensation insurance.
Twenty three states require that household (nanny) employers maintain Workers' Compensation Insurance policies. Commercial insurers are a good place to start, as this is business or commercial insurance. GEICO and USAA do not offer business insurance. Bear in mind that the broker/agent who helps you secure a policy will generally require you to have other insurance such as homeowners, renters or automobile insurance with them to issue the workers' compensation policy. Where the insurance is legally mandated, a state fund exists as the provider of last resort. This is typically the most expensive method of obtaining coverage, as the fund must insure all applicants, regardless of risk.
Lastly remember, you cannot purchase Workers' Compensation Insurance unless your nanny is paid legally. Employers paying their nanny "under the table" cannot protect themselves from this risk - and can be held personally liable should an accident occur.
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HomeWork Solutions can assist client to obtain Workers' Compensation Insurance. This is an exclusive client benefit. Request a consultation below, or call 800.626.4829.
