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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 Insurance Policy!

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 personal vehicle.


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.

Related Article: USA Today Review of State Requirements
U.S. Dept. of Labor Survey: Worker's Compensation by State