Difference between Insurance for Employers and Nannies
There are two types of insurance that nanny employers and their nannies will need to consider. Employers will need Employers Liability Insurance and Nannies may need Public Liability Insurance.
What is Employers Liability Insurance (ELI)?
- This insurance is a legal requirement for all UK employers set by the Employers’ Liability (Compulsory Insurance) Act 1969.
- The insurance is to protect the employer from situations where their nanny or home child carer has become unwell or been injured as a result of their job.
- Employers must ensure their policy covers them for a legal minimum of £5m.
- Any employer without this insurance will put themselves in a vulnerable position, not only from potential claims but also from the Health and Safety Inspector who can impose large fines if an employer is caught without it.
- Potential fines are up to £2500 for any day caught without a suitable policy in place and up to £1000 for employers who cannot produce a Certificate of Insurance when asked.
Nannytax can help
Enable Insurance Services
- Costs £99, including Insurance Premium Tax.
- A £10M Limit of indemnity, with additional £5m Public liability insurance.
What is Nanny Public Liability Insurance (PLI)?
- Public Liability Insurance provides essential cover for the nanny should anything happens to the children while they are in her care that she could be held responsible for.
- It provides protection for nannies in the work that they do. It covers nannies if their charges are injured while in their sole care, and also covers nannies should they cause damage to a third party’s property.
- It is not a legal requirement that the nanny has PLI but it is recommended.
- PLI is part of Ofsted's criteria should the nanny wish to become Ofsted Registered.
- Being insured gives a strong message to an employer that the nanny recognises their responsibilities and values the trust that is placed in the nanny when caring for the children.
Nannytax can help
- Costs £70 including Insurance Premium Tax.
- A £5M limit of indemnity and up to £50k Personal Accident cover.