Accidents happen—and if they happen to people you've hired to come into your home or onto your property to work, you're financially liable. It makes sense to understand how you're already covered and when to further insure household help.
Appropriate and adequate insurance coverage depends on the nature of the employee’s position and the assets you're protecting. As always, consult your insurance professional with any questions or requested changes to your policy. Here's some information to get you started.
For many household and in-home care needs—for example, for a nurse, a physical therapist, a cook or a housekeeper—you may decide to contract with a business or agency that provides these types of pros.
If you occasionally hire a babysitter to take care of your children or a young person in your neighborhood to rake leaves or clean the garage, review your current insurance and:
If you hire one or more home workers on a permanent, regularly scheduled basis, consider purchasing workers compensation insurance. Workers comp provides coverage for medical care and physical rehabilitation for an employee who is injured on the job, as well as lost wages if the employee is severely hurt and no longer able to work. In the worst-case scenario, it also provides death benefits.
Whatever the nature of the employee relationship, it's important to inform your auto insurance company if the person you hire is going to drive your car. For example, if you're going to lend your car to a worker to pick up groceries or take an aging parent to the doctor, your insurer needs to know about the additional driver for auto insurance purposes. Whatever the employee car usage, your insurer can explain your options.
Next steps link: Do you anticipate lots of workers because you're renovating? Know the insurance implications of remodeling your home.