Insurance for Domestic Workers

If you have a busy life or a big house, it can be extremely helpful to hire staff to help you run it. Many people hire all sorts of workers to help them with the day-to-day functioning of their homes, including nannies, chefs, housekeepers, and gardeners. When hiring domestic workers as employees, there are some important legal and insurance considerations homeowners must consider. These important regulations help protect the well-being of both the homeowner and the employee. If you have a house and are considering hiring employees to work in it, read on to make sure that you comply with all the legal requirements for domestic workers and also keep your home and property safe.

1. Workers’ Compensation

A homeowners insurance policy generally includes some liability coverage in case someone is injured in your home, but homeowners insurance policies are not meant to provide workers’ compensation benefits. Since a domestic employee is a worker in your home, you’ll need to purchase additional coverage in case he or she is injured on the job. Rules about workers’ compensation benefits vary from state to state, but if you purchase workers’ comp for your domestic employees, coverage will include both medical expenses and lost wages. Workers’ comp insurance is often available from your homeowner’s insurance provider, and often, you must have a homeowner’s insurance policy in order to be eligible to purchase a workers’ comp policy.

2. Property and Auto Insurance

You’ll want to protect the employees who are working in your home, but you’ll also want to protect your home and property, particularly if you are employing a non-family member to work in it. It is important to make sure you screen anyone you allow into your home, but in case you employ someone who turns out to be dishonest, you’ll want to make sure your homeowner’s insurance policy covers any property that person might steal or damage. You might also want to look into insurance for identity theft if your domestic workers have access to your personal or financial information. Finally, if your employee is going to be driving your car, you’ll want to add them as a driver on your car insurance policy.

3. Unemployment Insurance

It’s important to know that if you employ someone in your home and terminate their employment, it’s likely that you’ll have to pay unemployment insurance for him or her. That is, you will have to provide income replacement and other work placement services for them if you end the employment relationship. The cost of unemployment insurance varies by state.

If you have domestic workers or are thinking of hiring someone to work in your home, contact us at 817-626-3339, and we can help you make sure that you and your employees are properly covered. You can also get a Dallas business insurance quote on our website.