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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

Alaska Yes Yes
Alabama Yes
Arizona Yes
Arkansas Yes
California Yes Yes Working 52 or more hours per quarter. Typically obtained as a rider on the employer’s homeowner’s insurance – talk to your licensed agent.
Colorado Yes Regularly working 40 or more hours per week.
Connecticut Yes Yes Regularly working 26 or more hours per week.
Delaware Yes Yes Earning $750 or more per quarter.
District of Columbia Yes Yes Working 240 hours or more per quarter.
Florida Yes Required if employing 4 or more full or part time employees.
Georgia Yes Required if employing 3 or more full or part time employees.
Hawaii Yes Yes Earning $225 or more per quarter.
Idaho Yes
Illinois Yes Regularly work 40 or more hours per week.
Indiana Yes
Iowa Yes Yes Earning $1500 or more per year.
Kansas Yes Yes Total gross wages to all employees $20,000 or more per year.
Kentucky Yes Required if 2 or more full or part time household employees.
Louisiana Yes
Maine Yes
Maryland Yes Yes All employers subject to Maryland Unemployment Insurance.
Massachusetts Yes Yes Regularly working 16 or more hours per week.
Michigan Yes Regularly working 35 hours or more per week.
Minnesota Yes Yes All employers subject to Minnesota Unemployment Insurance.
Mississippi Yes Required if 5 or more full and part time household employees.
Missouri Yes
Montana Yes
Nebraska Yes
Nevada Yes
New Hampshire Yes Yes
New Jersey Yes Yes
New Mexico Yes
New York Yes Regularly employed 40 or more hours per week. Live in workers are required to be covered regardless of hours worked.
North Carolina Yes
North Dakota Yes
Ohio Yes Yes Pays wages of $160 or more per quarter.
Oklahoma Yes Yes Pays wages of $10,000 or more in a year.
Oregon Yes
Pennsylvania Yes
Rhode Island Yes
South Carolina Yes Required if employing 4 or more full or part time household workers.
South Dakota Yes Yes Employed more than 20 hours per week for six or more weeks.
Tennessee Yes
Texas Yes
Utah Yes Regularly works 40 or more hours per week.
Vermont Yes
Virginia Yes Required if 3 or more household workers are employed.
Washington Yes Required if 2 or more household workers are employed.
West Virginia Yes
Wisconsin Yes
Wyoming Yes

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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