What You Should Know When Employing Household Workers
Employing household workers such as housekeepers, gardeners, or nannies in your home makes you a “household” or “domestic” employer. This designation brings with it significant responsibilities, especially concerning liability. Imagine your nanny drives your kids to school but unfortunately runs a red light and gets injured in an accident. She can file a workers’ compensation claim against you despite being at fault to cover her medical expenses and lost income. You could face substantial financial burdens without proper insurance in Boston, MA.
Understanding Workers’ Compensation Laws in Massachusetts
In Massachusetts, workers’ compensation laws are stringent:
- All businesses must carry workers’ compensation insurance, including owners considered employees, irrespective of the hours worked.
- Domestic employees must be covered if they work 16 or more hours per week.
Domestic workers include nannies, housekeepers, maids, home health nurses, and gardeners. The legal definition of “employee” can vary, so consulting with your insurer is crucial when hiring new household staff. Typically, your homeowners or umbrella liability policies won’t cover these employees.
Importance of Proper Coverage
You may have a significant coverage gap if you already have household staff but lack the appropriate workers’ compensation insurance. This gap can leave you personally liable for potentially millions of dollars in medical bills for an injured employee.
Auto Insurance Considerations
Auto insurance is another critical consideration when hiring domestic workers. If a nanny or other employee drives your vehicle, ensure your policy covers additional drivers. Many insurance carriers require regular drivers to be listed on the policy to be entitled to coverage. Address this before any accidents occur. Additionally, if a domestic worker drives your children in their own car, consider requiring them to increase their insurance limits and provide proof of coverage.
Secure Your Peace of Mind
Finding the right insurance protection doesn’t have to be challenging. At CAV Insurance, we specialize in tailored coverage for unique situations faced by high-net-worth families in the Boston area. Our experts are ready to assist you in securing policies that safeguard your interests. Contact us today at 781-237-4107 to get started.