Insurance for caregivers is a topic that is often overlooked, or it is often assumed there is coverage on the homeowner’s policy, but usually that is not the case. First, let’s cover who is considered a caregiver. A caregiver could be a nanny that watches your children, someone who looks after an elderly parent in their home most or all of the time, or even a housekeeper. Caregivers can be paid by W2 or 1099, but they do not work for a separate business that has its own insurance. They are considered an employee, which is essentially what excludes them from your homeowners insurance. Therefore, what happens if a caregiver is injured while working for you? What if they are looking to you to reimburse them for their medical bills and lost wages? Most homeowner’s policies are not going to provide coverage for this, and that is when you need a workers’ compensation policy.
A workers’ compensation policy for caregivers is typically a relatively inexpensive policy, and can provide you with the peace of mind that you and your employee are properly covered. One accident could cost you thousands of dollars in medical bills if you are found liable for your caregiver’s injury. If you are unsure if you need a workers’ compensation policy, check with your insurance agent and they can help you determine what coverage you need.