What Insurance Do I Need As A Nanny Employer?
When you employ a nanny it’s important to consider insurance. Do all nanny employers require a specific Employer’s Liability Insurance policy? What if an employer already has home insurance?
As an employer in the United Kingdom, the law holds you responsible for any injuries sustained by your employee so it’s vital to understand your options.
Do I Need Employer’s Liability Insurance If I Employ A Nanny?
Yes, nanny employers must have Employer’s Liability Insurance.
In the UK, The Employers’ Liability (Compulsory) Insurance Act 1969 is a law that requires UK employers to have a minimum cover of £5milllion Employers Liability Insurance from an authorised insurer.
This law applies to those who employ domestic staff in their home such as nannies. Your nanny is your employee and you should have cover in place to protect you if they suffer an illness or injury whilst carrying out their duties.
Exceptions: According to the Employer’s Liability Act 1969, the employer is not required to insure employees who do not reside in Great Britain.
The employer is also not required to insure their relatives which can include a marital partner and half-relatives.
Do I need Employer’s Liability Insurance if I have Home Insurance?
We recommend you speak to your Household Insurance provider who can advise you based on the cover you have. Your Home Insurance provider can recommend a separate insurance policy or increase your current home insurance policy for a charge.
Limited Homeowner Insurance
In most cases, a homeowner’s insurance puts nanny employers in financial jeopardy if it is limited.
Household Contents Insurance
Household contents insurance may cover you as a nanny employer to some extent. However, it is not sufficient on its own unless you have carefully studied your insurance paperwork and concluded otherwise.
What Insurance is suitable for Nanny Employers?
Enable Insurance is a specialist Nanny Employer’s Liability Insurance policy designed for families who employ a nanny.
For £109 per year, the policy includes:
- Up to £10million Employers Liability Insurance to cover any legal costs and compensation due that your employee may be entitled to if they have become injured or ill as a result of working for you.
- Up to £5million Public Liability Insurance which covers you against compensation; and claimants’ costs and expenses where an event connected to support duties accidentally causes bodily injury to any person, or damage to property not belonging to you and your family.
- Cover abroad for up to 30 days per trip if your employee is accompanying you on holiday/overseas to support with nanny duties.
Policy limitations and exclusions apply. Full policy wording here.
Benefits of Enable Insurance vs Home Insurance
Specialist policy for nanny employers
If you employ a nanny, finding an appropriate insurance policy can be tricky. Nannytax and Fish Insurance introduced Enable Insurance to bring nanny employers specific cover designed for their nanny childcare needs.
Includes Public Liability Insurance
Enable Insurance includes up to £5million Public Liability Insurance at no additional cost. This provides protection if your employee’s duties involve them being in a public place. This is recommended as nannies often take the children out and about.
Covers trips abroad
Cover abroad for up to 30 days per trip if you choose to take your nanny on holiday/overseas to assist with support duties.
What Are The Risks If I Don’t Have Employer’s Liability Insurance?
As an employer in the United Kingdom, the law holds you responsible for any injuries sustained by your employee.
You risk being fined £2,500 each day if you are not adequately insured and £1,000 if you fail to display your employer’s liability certificate when requested by an inspector.
Do I Need Employer’s Liability Insurance If I Have A Self-Employed Nanny?
A self-employed nanny should have their own Public Liability Insurance such as Nannyinsure. However, we recommend you still consider having your own Public Liability Insurance in case your nanny injures themselves and you are found liable. Our Nanny Employer’s Liability Insurance Enable Insurance includes up to £5million Public Liability at no additional cost.
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Join Nannytax For Payroll & Insurance Combined
If you’re looking for full nanny employment support such as payslips, tax, contracts and HR – you can add Enable Insurance to your subscription when you join Nannytax.
