Do I need worker’s comp insurance for a nanny?

If you live in California and have a nanny or any household employees, you are required to carry a worker's compensation insurance policy (Labor Code Section 3700). Surprisingly, this includes family members.

These policies help employees with medical expenses and lost wages from work-related injury or illness. They also protect you as the employer, too, because workers who accept benefits generally forget their right to sue the employer regardless of fault.

Most homeowners insurance policies will provide some amount of worker's compensation, but you should contact your insurance provider to verify if it is included and is sufficient for the situation. There may be considerations for your auto policy as well.

When the required coverage is not included, endorsements can usually be added.