Do you have a nanny whom your kids love? A perfect nanny who knows the job well?
Well, that’s not it. You have to go through the rules of your country and buy a Worker’s Compensation Insurance for your nanny or nanny workers compensation insurance. It is because by hiring a nanny, you have become a household employer, and you have to comply with state laws.
In this article, you are going to get all the information related to nanny workers compensation insurance and how it works in different scenarios.
So, let’s get started!
How Does Worker’s Compensation Insurance Work?
Workers Comp Insurance or nanny workers compensation insurance is a protection for businesses and their employees by bearing financial losses. Typically, it works when any employee of the company gets sick or injured while at work.
For instance, if a worker falls off while on duty and breaks a leg, then worker comp insurance will bear all of the medical expenses along with the missed salaries (if they are unable to go the work with an injury).
In the case of a nanny, a dog can bite while walking around or trip an arm while playing outside with your kids, or meet a car accident while on duty. In all of these situations, all of the medical bills and other related expenses will be on Worker Comp Insurance Company.
Basically, the nanny insurance will save the nanny and the homeowner from unexpected losses and damages from work-related accidents. Since a single incident can leave an owner with a liability of thousands of dollars or even more.
Requirements for Worker’s Compensation Insurance for Nannies
Like other issues, workers’ compensation insurance policies for nannies also differ depending on which state you are in. Usually, states require employee coverage, even if it is only about the nanny. The same goes for housekeepers and caregivers.
Moreover, some states require worker comp insurance for nannies working full-time, which are:
- Utah: It applies an insurance policy if the nanny works 40 hours a week.
- Michigan: Applicable for working hours ranging from 35 or more per week.
- Colorado: Applicable if there are 40 working hours a week.
- New York: Regular working hours of 40 and for all live-in workers, no matter how many hours they work.
- Illinois: Coverage is applicable if the nanny works for 40 hours each week regularly.
Furthermore, some states require insurance coverage for both full-time and part-time nannies, they are:
- Connecticut: Nannies regularly work for 26 hours or more a week.
- Hawai: ones are earning $225 for each quarter.
- Georgia: Only required if 3 or more employees are working part-time or full-time.
- Kansas: If the total gross amount of employees’ wages is about $20,000.
- Ohio: If the wages of employees per quarter is $160 or more.
- Washington: Only if there are 2 or more part-time or full-time employees.
- Mississippi: Requires insurance coverage if you have five or more full-time employees.
- Oklahoma: Coverage is applicable if you pay $10,000 wages each year.
- Dakota: Insurance coverage applies if your employee works for more than 20 hours a week for continue 6 weeks.
- Kentucky: Coverage is required if you have two or more full-time employees.
Moreover, some states offer voluntary coverage of nanny work compensation, including:
- Indiana
- Missouri
- Nevada
- Arizona
- Idaho
- New Mexico
- Texas
- Wyoming
- North Carolina
- Maine
- Montana
- Oregon
- Louisiana
Therefore, before hiring a nanny, check for your state laws to save yourself from the future hassle and get yourself covered with the worker’s compensation coverage.
Why Do I Nanny workers compensation insurance?
If you don’t have workers’ compensation insurance coverage for a nanny, then you might be at risk. Since if your nanny gets hurt or met an accident while on duty, you have to bear all the medical expenses along with the salary of missed days (if a nanny is unable to work).
Cost of Nanny Work Compensation Insurance Coverage
Usually, the prices of the nanny worker insurance vary depending on the various factors like your location, workload, your nannies age and experience, how long the work hours are, and so on.
Typically, the nanny insurance coverage costs from $70 to $120 per month or may range from $840 to $1,440 per year.
However, different insurance companies charge differently according to their rules. If you are looking for the most reasonable nanny worker compensation insurance coverage, look around and take an estimate from different companies and choose the one that suits you the most.
Easiest Way to Get a Nanny Insurance Coverage
The easiest and most convenient way to get the workers’ compensation for a nanny is to contact an insurance company that provides auto coverage and homeowners. Check for their policies whether they offer nanny insurance policy or other home-based employee coverage. Luckily if they do, you can get a discounted package for the nanny coverage.
Subsequently, it is also a wise idea to look for top insurance companies in your area, or some companies do offer some deals and discounts on nanny insurance policies. Maybe you can find a convenient coverage of household employees together.
Punishment for Not Buying Workers Compensation Insurance
If you are unable to pay for the worker’s compensation insurance policy, you will have to pay a fine defined by your state government.
Typically, the penalty is divided into two categories:
- If you fail to file for the compensation insurance for five or lesser employees within 12 months, you are punishable for paying $1,000 to $5,000.
- Or, if you fail to buy insurance for more than five employees in twelve months, you have to pay a fine ranging from $5,000 to $50,000 along with other charges applied by the laws of government.
However, the penalties and punishments may vary according to your state rules and regulations. You have to make sure you get the right insurance plan at the right time.
Benefits of Workers Compensation Insurance Policy
If your employee suffers from an injury or any other illness while at work, you will be able to get the following coverage from your Worker’s Compensation Insurance Coverage:
· Paying Medical Bills
The major and main benefit of this insurance policy is that the worker’s medical bills and other medical-related expenses are covered by the insurance company, including emergency hospital visits, regular doctor visits, prescriptions, and surgeries.
For instance, if your nanny meets an accident while at work, all of the hospital visits and medical bills will be paid through Worker’s Compensation Insurance.
· Missed Salaries
Your Worker’s Compensation Insurance will cover your employees some of the missed wages if they are unable to go to work due to work-related injury. Like, if a nanny spills boiling water on her arm, your insurance coverage will cover some of her missed salaries.
· Continue Care and Support
Sometimes, a worker can get an injury that might need prolonged treatment and continuous care with multiple medical tests and treatments. For example, if your nanny breaks her leg during a walk with your kid, she would need regular hospital visits, checkups, and physical therapy. In such a scenario, your worker’s comp will cover up the bills.
· Funeral Expenses
During an unfortunate event, if your nanny loses her life while doing a job, her funeral expenses will also be covered by the Workers’ Compensation Insurance Company. Moreover, the death benefits will also be given to the nanny’s beneficiaries.
· Permanent Illness
Sometimes, a single accident may lead to permanent damage to the body, such as if your nanny is exposed to harmful chemicals or may meet an accident that leads to permanent disability to her body. In such a scenario, workers’ compensation insurance coverage will bear all the expenses of your employee.
· Repetitive Injuries
Not all injuries heal by a single treatment; sometimes, disease or an injury may take several weeks or months to heal properly. Like, carpal syndrome takes months or even years to be cured completely.
Workers’ Compensation Insurance for Nannies-Bottomline
Overall, hiring a nanny or any other household employee is a help for the homeowner, but at the same time, it comes with a burden of responsibility. You have to be sure that your worker is fully insured to protect them as well as yourself for any emergency expenses.
Moreover, you have to take care of your nanny like your family member. Workers’ Compensation Coverage is a beneficial policy for both parties. It is important to have the back of the insurance company in case of any unfortunate incident.