According to a poll conducted by Nannytax, nearly 64 per cent of nanny employers are uncertain if they have Employer’s Liability Insurance. This is despite the fact that employers can be fined up to £2,500 for every day they are without this cover.

All employers, and this includes nanny and other domestic employers, have a duty to take out Employers Liability Insurance and provide a safe workplace for their employee. Should the employee have an accident whilst working, there may be a claim brought by them for reimbursement of costs and compensation. Employers Liability would pay for the damages awarded and associated costs.

In many cases the employer may actually be covered without knowing they are. This is because Employer’s Liability insurance for domestic settings is often included in the contents insurance policy. However, as an employer it is your responsibility to ensure that it is in place, and that you are insured for a minimum of £5 MIL.