When hiring a nanny or au pair, you cannot overlook the potential risk this individual may bring to your family. We hope you will hire correctly, perform background checks and make sure that individual is a fit for your family. But have you contacted your risk advisor to go over the insurance implications when you do hire a nanny or au pair?
A brief snap shot of what is needed starts with a Workers’ Compensation policy. Since you will be paying the nanny for their service it is considered a business, therefore if the hired nanny works more than sixteen hours it is a requirement by the state to carry Workers’ Compensation insurance on that individual. Secondly, make sure your auto policy is updated to show the nanny has been added as an operator. Since the nanny will have regular access to the vehicle, they need to be added – especially if they are a household member. The third insurance concern would be an EPL policy. (Employment Practices Liability policy). An EPL policy will provide protection to you, the employer of the nanny, if the nanny is claiming wrongful termination for any of the following: race, sex, and/or religion. A key benefit to this policy is that it provides the policy holder a free attorney service that specializes in EPL cases.
Other than the insurance issues that can arise out of hiring a nanny, other things to consider are background checks, employee handbooks and state laws.
Questions? Contact Deland, Gibson for a complete Nanny Insurance Checklist.
