Workers Compensation and Nanny Employment
Reprinted with Permission from "NaniTax Tips",
the newsletter of HomeWork Solutions. (Fall 1995)
HomeWork Solutions - 1-800-NANITAX
Workers compensation insurance protects the domestic employee
and the employer from the expenses and liabilities associated
with a work-related accident. A single accident can leave the
employer liable for thousands of dollars in medical bills. Don't
assume that this liability is covered under your Homeowner's
Many states require household employer to carry Workers
Compensation insurance for their employees. The legal
requirements for obtaining this insurance vary widely from state
to state, with wages paid or hours worked usually the defining
item, not job description.
Typically this insurance is available through commercial
insurers. State insurance pools exist for those employers unable
to obtain commercial coverage. These state pools are generally
very expensive due to the higher risk levels present in the pool.
Domestic employers should discuss their requirement for this
insurance with their Property/Casualty agent. You may also need
to update your automobile insurance if your domestic drives your
Jim Kearney is a licensed State Farm agent
who can provide workers compensation insurance to employers in
Maryland and the District of Columbia. Any reader with questions
about this coverage may reach Jim at (800) 523-2297.
Effective 2007 State Farm will only issue household employers a worker's compensation policy if the employer has an existing (homeowners, renters, automobile) insurance relationship with State Farm or enters into such a relationship.
Article: USA Today Review of State Requirements
U.S. Dept. of Labor Survey: Worker's Compensation by State