Babysitting & Nanny Insurance: Cost, Coverage & Providers

Nannies and babysitters are a popular profession for anyone who has kids. The industry, however, is not without its risks. In this blog post, you’ll learn about the cost of nanny insurance versus coverage levels available from providers like Allstate Insurance Company or State Farm Insurance Company. We also explore how to find the best provider based on your needs and budget with tips from our readers!

Nanny insurance is a collection of business coverage for those who look after children, including general liability and professional liability. In the event of a lawsuit, nannies are covered by these regulations, whether they work out of their own house or someone else’s. General liability insurance for babysitters and nannies costs between $200 and $1,000 per year, with professional liability insurance costing roughly $840.

Unfortunately, getting coverage for nannies may be difficult, but CoverWallet can help. CoverWallet is an online broker that uses technology to evaluate numerous quotes from key carriers in order to discover the best low-cost solution for you. Fill out a free, no-obligation online form to get started right now.

Go to CoverWallet.com.

How Babysitting & Nanny Insurance Works

Nanny insurance protects your assets by addressing dangers associated with the job. A self-employed nanny, for example, need general liability coverage in the event that they are accused of causing property damage or physical injury. Nannies may also need professional liability insurance to cover the costs of malpractice claims, as well as commercial auto insurance if they drive for a living.

No government agency may give a nanny license or compel them to obtain insurance since no government entity governs nannies. Only when the family employs the nanny as an employee does nanny insurance become necessary. Most states require the family to get worker’s compensation insurance if this occurs. If an employee gets injured on the job or contracts a work-related sickness, this insurance reimburses them for missed earnings and medical expenses.

Who Babysitting & Nanny Insurance Is Right For

Nanny insurance is appropriate for anybody who looks after the children of others or hires a nanny to look after their own children. The person in charge of obtaining coverage, on the other hand, is determined by the nanny’s employment status. Nannies who fulfill the IRS’s self-employment requirements need business insurance to safeguard their assets.

The IRS rules for identifying someone is an independent contractor are as follows:

Independent contractors have more autonomy over what they do and how they do it than employees.
Financial: Independent contractors are more likely to be paid a fixed fee than to be reimbursed for money spent out of pocket.
Independent contractors often sign contracts and are responsible for paying their own taxes and health insurance.

Families that hire nannies are considered employers in most states. As a result, they are liable for payroll taxes as well as workers’ compensation insurance in several states.

Who Does Not Need Babysitting & Nanny Insurance

Self-employed nannies and families that hire nannies as workers are the best candidates for nanny insurance. It is not, however, appropriate for everyone. Nanny placement firms and day care facilities, for example, face more and distinct hazards. Other circumstances are just too casual to warrant insurance.

The following people are not eligible for nanny or child care insurance:

Owners of nanny staffing agencies
Owners of day care facilities
Providers of in-home day care
Babysitters who are teenagers

Day care center owners and Providers of in-home day care can find detailed information about their insurance needs in our guide to day care insurance.

Day Care Insurance vs. Nanny Insurance

Children are cared for by both nannies and day care professionals. Nannies, on the other hand, are professionals who often work in a family’s home. Children from numerous families are frequently accepted by day care providers who operate in their own homes or in a day care facility. These distinctions may have an influence on their insurance requirements.

The owner of a day care center most likely recognizes they’re a business owner, but Providers of in-home day care may see their services as casual babysitting. They own a home-based business and may even need a license depending on the number of children they care for. It also means they need more business insurance than a nanny. More detailed information is available in our article on day care insurance, mentioned in the section above.

Pro tip: Providers of in-home day care need nanny insurance, as homeowner’s policies usually exclude business activities. Once you take money for your services, you’re essentially operating a business, even if it’s in your home. Check out our article on home-based business insurance for a list of common policies at-home providers usually need.

Self-employed Babysitting & Nanny Insurance Costs

General liability insurance is the most common sort of nanny or babysitter insurance, and it normally costs less than $70 per month. Adding extra but required coverages, including child abuse and molestation or professional liability insurance, might, however, raise the cost. Commercial vehicle insurance may be the most expensive for nannies who drive their own automobile.

Nanny Insurance Costs & Deductibles by Insurance Type

*A deductible is not required by most insurers for these liability insurance, but you may ask for one to keep your rates down.

Those who operate as self-employed nannies and babysitters in a family’s house may not need as much insurance as those who watch children in their own homes. Misunderstandings may occur while children are out of their parents’ sight, leading to litigation. Filing claims, however, might raise your rates.

Parents who employ nannies are in the same boat. As a parent and an employer, you want to make sure that everyone is safe and happy.

In any case, you can lower your risks and save money on babysitter insurance by doing the following:

Using written agreements: Putting everything in writing may seem formal, but it’s a smart approach to ensure that everyone understands their responsibilities.
Preventing injuries and giving quick treatment when they occur may prevent issues from worsening and lessen the risk of a lawsuit; parents should ensure that their nanny has received sufficient training.

Types of Self-employed Babysitter & Nanny Insurance

Independent contractor nannies need nanny insurance to protect themselves from the hazards that come with that position. Liability plans such as general liability and professional liability are the most significant coverages for nannies. Many insurers bundle these plans with coverage for nannies who have been abused or molested. Commercial car riders are sometimes added to general liability policies by certain insurers.

Most Common Types of Self-employed Babysitter & Nanny Insurance

Nannies’ General Liability Insurance

Accidents that result in property damage or bodily injury are covered by general liability insurance. It usually covers medical or repair costs, but it may also support your legal defense. When you’re accused of creating advertising harms, such as libel and slander, general responsibility covers these expenses as well.

The following are some scenarios in which a nanny may need general liability insurance:

While playing with the kids, they accidentally knock over an expensive vase.
In a rare accident, a toddler fractures a bone.
Another nanny claimed they fostered rumors that led to the firing of the nanny.

General liability insurance protects your assets in situations like these by paying expenditures that you would otherwise have to pay out of pocket.

Abuse & Molestation Coverage for Nannies

Working with children puts you at risk for sexual misconduct charges. Abuse and molestation insurance pays for your lawyer’s expenses, investigative fees, and court costs if you are accused of abuse or molestation. Plans may be bought separately, although most nannies opt for general liability policies with individual abuse and molestation limitations.

Nanny agencies often purchase abuse and molestation insurance to shield themselves from responsibility if one of their staff is accused of sexual misbehavior. However, in the case of a deliberate crime, the coverage seldom extends to the offender. Independent contractors who work as nannies may still need abuse and molestation insurance, since it often covers claims when you’re found not guilty.

Nannies’ Commercial Auto Insurance

Nannies who pick up their children from school or conduct errands in their own vehicles are likely to need commercial car insurance. It compensates you for the injuries and property damage you cause in the event of an accident.

A nanny may be eligible for supplemental vehicle insurance coverage, such as:

Payments for medical expenses incurred by you and your passengers.
Collision: In the event that your vehicle is damaged in a collision.
Uninsured & underinsured motorist: For when the other driver is responsible for damages but cannot pay

Personal vehicle plans often exclude business-related driving, leaving nannies without coverage if they work from home. A single policy, on the other hand, may be too much insurance for nannies. Inquire with your agent about extending your general liability insurance coverage.

It’s a good idea to include your nanny in your own vehicle insurance if you hired one. If the nanny does not live with you, you may even classify them as a non-resident driver. However, if your nanny doesn’t drive your vehicle very often, they’re probably insured as a permissive user.

Nannies’ Disability Insurance

Families that hire domestic employees, such as nannies, may be required by state law to get workers’ compensation to cover any illnesses or injuries that arise as a result of their employment. However, nannies who operate as independent contractors or in states where workers’ compensation is not required may need disability insurance.

When you can’t work due to a physical accident, sickness, medical condition, or pregnancy, disability insurance compensates a part of your wage. Depending on the insurance carrier you pick, insurance premiums might range from 60 percent to 90 percent of your gross earnings or net income. However, you should be aware that there is an elimination period, often known as a waiting period, which is the amount of time you must wait before receiving your disability payments. If you choose a 90-day elimination period, you may be eligible for disability benefits on your 91st day.

Nannies’ Professional Liability Insurance

A family may sue if they think you were negligent in your duties. For instance, a nanny may be accused of serving an allergen to a child or offering advice that causes an injury. If they do, professional liability insurance, also known as errors and omissions (E&O) insurance, covers your legal bills, paying for attorneys, court costs, and settlements or judgments that don’t go your way.

Traditionally, professional liability insurance is reserved for professionals, such as individuals who have completed required studies and have a set of standards to uphold. But insurers have responded to an increase in negligence lawsuits by offering E&O insurance to nontraditional professionals. Combine a litigious society with parents’ desire to protect their children, and professional liability insurance may be right for you.

Nannies’ Surety Bonds

Some families will only engage nannies who have both a surety bond and liability insurance. A surety bond is more of a guarantee for the family than it is insurance. The bond company guarantees that the family’s claims against you will be paid. Their readiness to provide you a bond is seen as an indication of your reliability.

A surety bond provider basically commits to pay if you:

Take advantage of the family.
If you don’t deliver on your promises, you’ll be fined.
Result in harm

Bonds are uncommon among nannies. They’re quite cheap, maybe $200 each year, but they’re related to particular instances. Liability insurance often offers more comprehensive coverage.

Babysitting & Nanny Insurance Providers

CoverWallet

CoverWallet is an online insurance broker that uses technology to help you compare several quotes from leading carriers and discover the best low-cost solution for you. The platform is well-known for its simplicity and ease of use, making it straightforward for small company owners to grasp how to choose the appropriate coverage.

CoverWallet is a good fit for self-employed nannies since they are responsible for their own insurance as independent contractors. CoverWallet simplifies the process by providing nannies with many estimates to compare and understand where their premium money are spent with each insurance company.

CyberPolicy

CyberPolicy makes purchasing for insurance online a lot easier. They’re a reputable broker that shops and compares prices on a broad range of commercial insurance plans from leading providers including Progressive Commercial, Chubb, Liberty Mutual, Nationwide, and more than 40 others. This guarantees that you’ll obtain the correct coverage for your company at a reasonable cost.

CyberPolicy will ensure that your company is safe, regardless of the sort of business you run. CyberPolicy aims to provide quick and accurate quotes from reputable insurers while also making the process of obtaining dependable nanny insurance as simple as possible.

Insurance Companies in Philadelphia

Insurance Companies in Philadelphia is a specialty insurer that writes property and liability policies for select service industries. Most business owners connect with Insurance Companies in Philadelphia through local agents and can find contact information on the company website.

Child care providers who offer field trips and after-school programs should work with Insurance Companies in Philadelphia. The company’s child care insurance program includes the following:

Buses, 15-seater passenger vans, and individual passenger cars are all covered by auto insurance.
Coverage of corporal punishment
The Property Elite form provides business income coverage with a $300,000 cap.
Excess limit is high.
Accounts producing at least $2,000 in premiums are eligible for installment options.

AP Intego

If you’re a self-employed nanny looking for further information about insurance providers, go to AP Intego. Its representatives will shop and evaluate insurance choices from top-rated insurance firms around the country. In just a few minutes, you may get various estimates online and pick the coverage that’s appropriate for you.

Markel

Nanny insurance is provided by Markel, a speciality insurer for in-home child care providers. Their general liability insurance covers sexual misconduct charges and provides limits of up to $1 million per occurrence/$3 million aggregate. It also includes defense and monetary judgment coverage up to $100,000 per occurrence/$300,000 aggregate for your company.

The following kinds of day care establishments are covered under Markel’s commercial child care program:

Child care facilities with a license
Schools for children under the age of five
Montessori schools are available from kindergarten onwards.
Preschools
Programs for children before and after school

The American Federation of Daily-Care Services, a buying association established up by Markel, offers this coverage to nannies who care for children in their homes. The company’s nanny insurance and loss control services are included in the $60 membership fee.

Families’ Nanny Insurance Options

The majority of nannies are recruited as workers, which means they have little influence over the job they do. The person who employs the nanny usually provides them instructions, making him or her an employer. It also affects the insurance requirements of the company.

Employers of nannies may require:

Workers’ compensation insurance: Workers’ compensation insurance is required in 25 states to cover a nanny’s job-related injuries and illnesses; even if your state does not require coverage, you may opt in to safeguard your assets.
Employer’s liability insurance: This coverage is often included in workers’ compensation to cover your legal costs if the nanny claims their injury was caused by your carelessness.
Vehicle insurance: You presumably already have auto insurance; nevertheless, you should be sure to include your nanny as an infrequent driver and, if you don’t, to add uninsured or underinsured motorist coverage.
Personal umbrella liability insurance may increase the limitations of your home insurance’s liability coverage, which might be useful if a family with which you share a nanny sues for an accident to their kid.
Renters Insurance: As live-in nannies, renters insurance may be a practical option for protecting your personal belongings. If you’re recruited as an employee, your belongings may not be protected by your employer’s homeowner’s insurance in the event of a break-in, theft, or fire.

In addition, an umbrella policy may increase the limits of your car and employer’s liability insurance. Because the latter is unusual, be sure to check with your agent to see whether employer’s responsibility is covered.

Because nannies are designated as Q-2 workers, homeowner’s insurance will not cover them. Because their earnings are often documented on an IRS W-2 form, the family is viewed more like a company or an organization with obligations than a family with a home.

Babysitting-amp-Nanny-Insurance-Cost-Coverage-amp-Providers

Conclusion

Professional nannies and babysitters work in a gray area. They must define their employment position in order to select the kind of insurance that will cover their responsibilities. They may pick the coverage that is appropriate for their risks after they know whether they are independent contractors or employees.

CoverWallet can assist you in obtaining coverage that is appropriate for your risks. CoverWallet’s algorithm swiftly provides various estimates from prominent carriers and identifies a low-cost plan that’s perfect for you when you fill out the free, no-obligation questionnaire online. Begin right now.