Table of contents<\/h2>- What is workers\u2019 compensation insurance?<\/a><\/li>
- Why wouldn\u2019t my homeowners insurance policy cover my nanny or senior caregiver?<\/a><\/li>
- Why is workers’ compensation insurance so important?<\/a><\/li>
- Are household employers required to purchase a workers’ compensation policy?<\/a><\/li><\/ul><\/div>\n\n\n\n
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\n![\"Cross](\"https:\/\/www.care.com\/hp\/wp-content\/uploads\/sites\/3\/2024\/08\/300x250-V2-1.png\")
<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\n\u201cA home doesn\u2019t seem like a typical workspace, but when you hire a caregiver, that\u2019s exactly what it is,\u201d says Tom Breedlove, Sr. Director of Care.com HomePay<\/a>. \u201cSo when your nanny gets hurt while working for you, workers\u2019 comp comes into play just like if you were to get hurt at your job.\u201d<\/p>\n\n\n\n<\/a>What is workers\u2019 compensation insurance?<\/strong><\/h2>\n\n\n\nWorkers’ compensation is a type of insurance policy that provides financial assistance to employees in the event of a work-related injury or illness. Typically, claims cover the cost of the employee\u2019s medical bills and lost wages while they\u2019re out of work. Workers\u2019 compensation policies must be managed by a state-licensed insurance broker and families pay an annual premium for coverage.<\/p>\n\n\n\n
<\/a>Why wouldn\u2019t my homeowners insurance policy cover my nanny or senior caregiver?<\/strong><\/h2>\n\n\n\nHomeowners insurance is designed to protect you in the event of someone like a roofer or plumber getting hurt while working in your home. It\u2019s not made to cover employees \u2014 which is what your nanny or senior caregiver is. The only exception is in California where homeowners policies have a level of workers’ comp coverage built in. If you live in California, you should call your insurance provider to make sure your coverage is adequate or if you need to purchase a rider to your existing policy.<\/p>\n\n\n\n
<\/a>Why is workers’ compensation insurance so important?<\/strong><\/h2>\n\n\n\nFamilies who don’t have workers’ compensation insurance coverage have significant exposure if there is ever a workplace injury because employers are generally liable for the amount of the workers’ comp benefits. This means the employee’s medical expenses (doctor visits, rehab appointments, medications, etc.) and lost wages would have to come out of pocket. A significant accident could be financially devastating. Here is a real-life case:<\/p>\n\n\n\n
A caregiver sustained a back injury in a car accident while grocery shopping for her employer. She was unable to work for 12 weeks and her surgery and rehab expenses totaled about $15,000. Based on her average weekly wage and the medical expenses, the workers’ compensation benefits would have been approximately $18,000. However, because they didn’t have a policy, the family was forced to pay those benefits.<\/em><\/p>\n\n\n\nIn addition to financial liability, in states where workers’ compensation is required, there are substantial fines for non-compliance. Finally, workers’ compensation insurance provides legal protection because employees who accept benefits generally forfeit their right to sue the employer, regardless of fault.<\/p>\n\n\n\n
<\/a>Are household employers required to purchase a workers’ compensation policy?<\/strong><\/h2>\n\n\n\nThe majority of states do require families to have a workers\u2019 compensation policy if they hire a caregiver to work in their home. Check the requirements in your state<\/a>. Even if your state does not require you to have a policy in place, it\u2019s important coverage to have for the reasons mentioned above.<\/p>\n\n\n\nThe good news is, HomePay can provide a workers’ compensation solution for most families. Depending on what type of household employee you plan to hire and what state you live in, our exclusive partner can write a stand-alone workers\u2019 compensation policy. Prices vary by state and you can receive a free instant quote<\/a> online, but the average cost is between $700-$800 annually if you hire a nanny. If you hire a senior caregiver, rates are based on their payroll, but free quotes<\/a> are also available through our partner.<\/p>\n\n\n\nLike any insurance, workers’ compensation isn’t needed very often. But when it is, it’s worth its weight in gold. For more information or to obtain coverage, please contact Clarke White, with Ryan Specialty Group, at 804-267-1210 or email clarke@homepaywc.com<\/a>.<\/p>\n\n\n\n<\/div>\n\n\n\nNext Steps:<\/strong><\/p>\n\n\n\n\nRead a case study about the importance of workers\u2019 compensation<\/a> <\/span><\/p><\/li>\n\n\n\nLearn about the payroll and tax responsibilities you have as an employer<\/a> <\/span><\/p><\/li>\n\n\n\nFind out about the tax breaks you receive by paying your caregiver legally<\/a><\/p><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"Most states require you to have a workers’ comp policy when you hire a nanny or senior caregiver. Find out what this insurance policy does to protect your family.<\/p>\n","protected":false},"author":1478,"featured_media":1036,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"enable_toc":false,"care_post_updated_flag":false,"care_updated_date":"2024-12-23 16:00:00","last_update":"2024-12-23","view_count":47601,"footnotes":""},"categories":[1],"tags":[],"member-type":[2],"vertical":[3,363],"platform":[11],"acf":[],"created":"2016-12-21","_links":{"self":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157"}],"collection":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/users\/1478"}],"replies":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/comments?post=157"}],"version-history":[{"count":10,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157\/revisions"}],"predecessor-version":[{"id":3330,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157\/revisions\/3330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media\/1036"}],"wp:attachment":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media?parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/categories?post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/tags?post=157"},{"taxonomy":"member-type","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/member-type?post=157"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/vertical?post=157"},{"taxonomy":"platform","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/platform?post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/p>\n\n\n
<\/a><\/figure><\/div>\n\n\n\u201cA home doesn\u2019t seem like a typical workspace, but when you hire a caregiver, that\u2019s exactly what it is,\u201d says Tom Breedlove, Sr. Director of Care.com HomePay<\/a>. \u201cSo when your nanny gets hurt while working for you, workers\u2019 comp comes into play just like if you were to get hurt at your job.\u201d<\/p>\n\n\n\n Workers’ compensation is a type of insurance policy that provides financial assistance to employees in the event of a work-related injury or illness. Typically, claims cover the cost of the employee\u2019s medical bills and lost wages while they\u2019re out of work. Workers\u2019 compensation policies must be managed by a state-licensed insurance broker and families pay an annual premium for coverage.<\/p>\n\n\n\n Homeowners insurance is designed to protect you in the event of someone like a roofer or plumber getting hurt while working in your home. It\u2019s not made to cover employees \u2014 which is what your nanny or senior caregiver is. The only exception is in California where homeowners policies have a level of workers’ comp coverage built in. If you live in California, you should call your insurance provider to make sure your coverage is adequate or if you need to purchase a rider to your existing policy.<\/p>\n\n\n\n Families who don’t have workers’ compensation insurance coverage have significant exposure if there is ever a workplace injury because employers are generally liable for the amount of the workers’ comp benefits. This means the employee’s medical expenses (doctor visits, rehab appointments, medications, etc.) and lost wages would have to come out of pocket. A significant accident could be financially devastating. Here is a real-life case:<\/p>\n\n\n\n A caregiver sustained a back injury in a car accident while grocery shopping for her employer. She was unable to work for 12 weeks and her surgery and rehab expenses totaled about $15,000. Based on her average weekly wage and the medical expenses, the workers’ compensation benefits would have been approximately $18,000. However, because they didn’t have a policy, the family was forced to pay those benefits.<\/em><\/p>\n\n\n\n In addition to financial liability, in states where workers’ compensation is required, there are substantial fines for non-compliance. Finally, workers’ compensation insurance provides legal protection because employees who accept benefits generally forfeit their right to sue the employer, regardless of fault.<\/p>\n\n\n\n The majority of states do require families to have a workers\u2019 compensation policy if they hire a caregiver to work in their home. Check the requirements in your state<\/a>. Even if your state does not require you to have a policy in place, it\u2019s important coverage to have for the reasons mentioned above.<\/p>\n\n\n\n The good news is, HomePay can provide a workers’ compensation solution for most families. Depending on what type of household employee you plan to hire and what state you live in, our exclusive partner can write a stand-alone workers\u2019 compensation policy. Prices vary by state and you can receive a free instant quote<\/a> online, but the average cost is between $700-$800 annually if you hire a nanny. If you hire a senior caregiver, rates are based on their payroll, but free quotes<\/a> are also available through our partner.<\/p>\n\n\n\n Like any insurance, workers’ compensation isn’t needed very often. But when it is, it’s worth its weight in gold. For more information or to obtain coverage, please contact Clarke White, with Ryan Specialty Group, at 804-267-1210 or email clarke@homepaywc.com<\/a>.<\/p>\n\n\n\n Next Steps:<\/strong><\/p>\n\n\n\n Read a case study about the importance of workers\u2019 compensation<\/a> <\/span><\/p><\/li>\n\n\n\n Learn about the payroll and tax responsibilities you have as an employer<\/a> <\/span><\/p><\/li>\n\n\n\n Find out about the tax breaks you receive by paying your caregiver legally<\/a><\/p><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" Most states require you to have a workers’ comp policy when you hire a nanny or senior caregiver. Find out what this insurance policy does to protect your family.<\/p>\n","protected":false},"author":1478,"featured_media":1036,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"enable_toc":false,"care_post_updated_flag":false,"care_updated_date":"2024-12-23 16:00:00","last_update":"2024-12-23","view_count":47601,"footnotes":""},"categories":[1],"tags":[],"member-type":[2],"vertical":[3,363],"platform":[11],"acf":[],"created":"2016-12-21","_links":{"self":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157"}],"collection":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/users\/1478"}],"replies":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/comments?post=157"}],"version-history":[{"count":10,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157\/revisions"}],"predecessor-version":[{"id":3330,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/157\/revisions\/3330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media\/1036"}],"wp:attachment":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media?parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/categories?post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/tags?post=157"},{"taxonomy":"member-type","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/member-type?post=157"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/vertical?post=157"},{"taxonomy":"platform","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/platform?post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a>What is workers\u2019 compensation insurance?<\/strong><\/h2>\n\n\n\n
<\/a>Why wouldn\u2019t my homeowners insurance policy cover my nanny or senior caregiver?<\/strong><\/h2>\n\n\n\n
<\/a>Why is workers’ compensation insurance so important?<\/strong><\/h2>\n\n\n\n
<\/a>Are household employers required to purchase a workers’ compensation policy?<\/strong><\/h2>\n\n\n\n
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