How can you protect your liabilities with insurance for domestic help? When hiring help in your home, it’s important to consider increasing your insurance coverage to safeguard against potential liabilities. This may include obtaining additional liability coverage, medical payments coverage, extended automobile coverage, or even reputational injury coverage.
Understanding the Basics for the Insurance for Domestic Help
If you employ residential help such as butlers, chauffeurs, chefs, gardeners, housekeepers, nannies, babysitters, personal assistants, or security personnel, it is crucial to have proper insurance coverage. This will protect you from legal actions related to wrongful termination, sexual harassment, employment discrimination, reputational harm, and personal injuries. To effectively manage these liabilities, you need to identify the type of help you have hired and obtain the appropriate coverage accordingly.
Types of Household Help
Individuals hired through an outside firm, such as chefs, au pairs, or drivers:
- Determine whether the individual is your employee or an employee of the firm.
- Obtain a copy of the firm’s certificates of insurance to ensure they have workers’ compensation insurance for their employees. If the organization provides health and disability insurance for their employees, their employer’s policy covers any injuries sustained by the hired help on your property.
Occasional employees (e.g., babysitters, leaf rakers):
- Review your homeowners or renters insurance policy to assess the adequacy of your liability coverage.
- Consider increasing your liability insurance by raising the existing limit or purchasing an umbrella liability policy.
- Familiarize yourself with the no-fault medical coverage within your homeowner’s insurance policy, which allows you to submit medical claims if someone is injured on your property (excluding immediate family members).
Permanent full or part-time domestic help
- Seek advice from an attorney regarding tax deductions and workers’ compensation obligations.
- Contact Advantage Insurance Solutions to acquire a workers’ compensation policy, which provides coverage for medical care, rehabilitation, lost wages, and death benefits in the event that hired help gets injured and cannot work.
We’re Here to Help:
Reach out to Advantage Insurance Solutions at 877-658-2472 to learn more about the specific requirements for this coverage. It is important to note that if you fail to purchase workers’ compensation insurance when required, your homeowners’ policy will not cover any damages or penalties that may arise. Allow us to assist you in understanding your risks and finding suitable liability insurance solutions for your hired help.