Who provides workers' compensation insurance for my nanny?

Licensed insurance broker: You can work with a licensed insurance broker to find an appropriate policy for your situation.

State insurance fund: Some states have a state-run fund from which you can purchase coverage, though it may be more expensive.

If you hire a nanny and want to provide workers’ compensation insurance, here’s how it works and what to do:

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✅ What you’re responsible for

As the employer of a domestic worker (such as a nanny) you may need to secure workers’ compensation insurance. For example:

• In California, the employer must have workers’ comp for a nanny because a nanny is almost always considered an employee. [1]
• In New York, if the nanny works 40 or more hours per week for the household, you must provide workers’ comp coverage. [2]
• Some states make it optional if fewer hours are worked, but it can still make sense to have it for protection. [3]
• Many insurance brokers treat household employers (nannies, housekeepers) as needing specialized domestic-employee workers’ comp policies. [4]

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🔍 How to arrange it

Here are your main options:

• Contact your homeowner’s insurance insurer and ask if a rider or endorsement can be added for your nanny/domestic employee. Some policies permit this. [5]
• Alternatively, purchase a stand-alone workers’ compensation policy that specifically covers household employees. Many brokers and insurers offer this. [6]
• Use a payroll service that caters to household employers and offers bundled workers’ comp coverage. [7]

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📌 What you should check

• Confirm whether your state law requires workers’ comp when hiring a nanny (hours worked, employee vs contractor status, live-in or not).
• Make sure the policy covers domestic employees/household workers, not only business staff.
• Verify what’s included (medical, wage replacement, employer liability) in the coverage.
• Keep good records of hours worked, job duties and payroll — this matters for compliance and audits.
• Ask about costs, what your rates might be; they typically depend on wages paid and number of employees. [8]

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If you tell me which state you live in (or your nanny is working), I can check your state’s specific requirement and list insurers who cover that type of policy. Would you like me to do that?