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About Household Employee Workers Compensation Insurance

Nanny workers compensation insurance protects the caregiver and the employer from the expenses and liabilities associated with a work-related accident.  A single accident can leave the household employer liable for thousands of dollars in medical bills.  Don’t assume that this liability is covered under your Homeowner’s Insurance Policy!

Most states require household employers to carry Workers’ Compensation insurance for their household employees such as a nanny, senior caregiver or housekeeper. This insurance will reimburse an employee who was injured on the job for qualifying medical expenses and lost wages.  If you don’t have a workers’ compensation insurance policy, you may be personally liable for your injured employee’s expenses.  Perhaps more importantly, workers’ compensation insurance affords you legal protection because when an employee accepts benefits, he or she generally forfeits their right to sue you, the employer, regardless of fault.

Obtaining Nanny Workers’ Compensation Insurance: To be clear, workers’ compensation insurance is an insurance policy, not a tax.  As such, it must be managed by a state-licensed insurance broker.  Typically this nanny insurance is available through commercial ensurers, but some state funds exist as a provider of last resort where coverage is required by law. State funds are typically the most expensive method of obtaining coverage, as they must ensure all applicants, regardless of risk.

nanny workers compensation

HWS has an exclusive insurance partner who will help clients easily obtain affordable workers’ compensation insurance coverage.  HWS clients can receive a free quote for household employer workers’ compensation insurance. Contact us for more details.”

Our guides for household employment laws by state provide information and links for Workers’ Compensation Insurance in each state. The chart below is intended for informational purposes only, and is not specific legal or insurance advice.  HWS strongly recommends all household employers speak to a licensed insurance agent and purchase this insurance when available.

*Household employers may also need to update  automobile insurance if a household employee drives their personal vehicle.  Be sure to check with your insurance agent about coverage.


Where Household Employers Need Workers’ Compensation Insurance

CaliforniaYesYesWorking 52 or more hours per quarter. Typically obtained as a rider on the employer’s homeowner’s insurance – talk to your licensed agent.
ColoradoYesRegularly working 40 or more hours per week.
ConnecticutYesYesRegularly working 26 or more hours per week.
DelawareYesYesEarning $750 or more per quarter.
District of ColumbiaYesYesWorking 240 hours or more per quarter.
FloridaYesRequired if employing 4 or more full or part time employees.
GeorgiaYesRequired if employing 3 or more full or part time employees.
HawaiiYesYesEarning $225 or more per quarter.
IllinoisYesRegularly work 40 or more hours per week.
IowaYesYesEarning $1500 or more per year.
KansasYesYesTotal gross wages to all employees $20,000 or more per year.
KentuckyYesRequired if 2 or more full or part time household employees.
MarylandYesYesAll employers subject to Maryland Unemployment Insurance.
MassachusettsYesYesRegularly working 16 or more hours per week.
MichiganYesRegularly working 35 hours or more per week.
MinnesotaYesYesAll employers subject to Minnesota Unemployment Insurance.
MississippiYesRequired if 5 or more full and part time household employees.
New HampshireYesYes
New JerseyYesYes
New MexicoYes
New YorkYesRegularly employed 40 or more hours per week. Live in workers are required to be covered regardless of hours worked.
North CarolinaYes
North DakotaYes
OhioYesYesPays wages of $160 or more per quarter.
OklahomaYesYesPays wages of $10,000 or more in a year.
Rhode IslandYes
South CarolinaYesRequired if employing 4 or more full or part time household workers.
South DakotaYesYesEmployed more than 20 hours per week for six or more weeks.
UtahYesRegularly works 40 or more hours per week.
VirginiaYesRequired if 3 or more household workers are employed.
WashingtonYesRequired if 2 or more household workers are employed.
West VirginiaYes

Resource: US Department of Labor Survey: STATE WORKERS’ COMPENSATION LAWS

Talk to your insurance company!

We strongly recommend that you discuss your situation and your state’s insurance regulations with a licensed insurance agent.  HomeWork Solutions’ household payroll professionals are not qualified to discuss specific insurance issues and will direct clients to our licensed insurance partner.  We are happy to make referral of clients to our trusted insurance partner.

» Blog: Real Life Example
» US Department of Health & Human Services:Worker’s Compensation in the Consumer Market
» US Department of Labor Survey of State Worker’s Compensation Laws

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