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Nanny Insurance: 5 Types of Insurance Coverage You Need

By March 26, 2021July 7th, 2021Premier Insurance
nanny-insurance

What You Need to Know About Nanny Liability Insurance

Nanny insurance is essential to a comprehensive personal insurance program to protect you from litigation and expensive claims in the future.

What nanny liability insurance should I carry if I hire a nanny?

  1. Workers’ Compensation
  2. Employment Practices Liability Insurance
  3. Auto Insurance
  4. Umbrella Insurance
  5. Risk Management Services

Nannies are often hired by families to help take care of their children as they navigate their busy lives. However, there are five types of nanny insurance coverage that you should consider when choosing nanny insurance.

1) Workers’ Compensation

Domestic staff workers’ compensation insurance is the foundation for nanny liability insurance. If your nanny is injured while on the job, your nanny could sue you if you do not purchase workers’ comp coverage. On top of that, your home and umbrella liability policies will not provide defense coverage or pay her medical bills and lost wages if the situation arises. Without workers’ compensation, you would be left footing the bill for those expenses.

2) Employment Practices Liability Insurance

Employment-related lawsuits have increased in recent years. If you plan on bringing an au pair to America or hiring domestic staff, employment practices liability insurance (EPLI) is crucial to managing risks associated with hiring nannies. EPLI provides nanny insurance coverage in the event that you, as an employer, are sued for wrongful termination, discrimination, invasion of privacy, sexual harassment, and more.

3) Auto Insurance

Car insurance for nannies is often an overlooked consideration when it comes to nanny insurance. If your nanny will be driving kids to soccer practice, school, or other events, you should add them as a driver to your auto insurance policy. Additionally, have your nanny sign an authorization form permitting you to check their driving record. If she will be using her own car during transportation, request proof of auto liability insurance and make sure she carries high limits of at least $500,000 or more.

4) Umbrella Insurance

Umbrella policies with most mainstream insurance carriers do not provide important coverage enhancements like EPLI. In addition, mainstream carriers that do not tailor their coverages to high-net-worth families do not provide adequate coverage limits on umbrella policies. The basic rule of thumb is to carry your net worth rounded up to the next million for umbrella coverage. If you have to fight with your insurer to get coverage above $1,000,000, imagine what it would take to get them to pay out those limits in the event of a claim.

5) Risk Management Services

There are other risk management services that are important to a comprehensive personal insurance portfolio, especially when it comes to hiring nannies. At Sterling Coverage, we partner with premier insurers that go beyond insurance and help you manage the risks associated with hiring au pairs and nannies. Professional background screening services are important to understanding who exactly you are hiring to take care of the most important people in your life. We can also connect you with personal security professionals, human resources advisors, and dedicated service teams that provide exclusive advice for your personal situation.

At Sterling Coverage, our advisors specialize in high-net-worth insurance and understand the risks of hiring domestic staff and nannies. Protect your family with Sterling Coverage. Get started today with a complimentary insurance review.

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