Nanny Insurance: Cost & Quotes From $15/mo

 

A home daycare isn’t always an option to everyone, hence why nannies are in a growing demand all over the states. Given the essential role of childcare in the American economy, it often comes with significant liabilities and exposures.

If you employ a nanny, it’s crucial to have a comprehensive insurance policy that provides the necessary coverage. This article will guide you through the components of effective nanny insurance, including:

  • The different insurance policies nannies need
  • Their functions and policy limits
  • Cost of premiums
  • The best insurance companies

Do Nannies Need Insurance?

General liability insurance is a crucial policy for nannies, covering common liabilities like personal injury and property damage. Below are additional nanny liability insurance categories that nannies or babysitters should consider for comprehensive protection.

 

General Liability Insurance for Nannies

Nanny insurance typically includes general liability coverage, which protects against personal injury and property damage claims. Examples of situations where this policy is useful include:

  • A nanny accidentally damages property in a client’s home that isn’t covered by the homeowner’s policy.
  • While watching a child, the child accidentally damages an electronic device.

Coverage limits generally range from $1 million per occurrence to $2 million in aggregate.

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included

 

 

Professional Indemnity Insurance for Nannies

Professional indemnity insurance covers liabilities resulting from mistakes made while performing nanny duties. Examples include:

  • Making a scheduling error that leads to a lawsuit from a client.
  • Failing to consider a child’s food allergy, resulting in the child needing medical care.

Coverage limits typically range from $25,000 to $50,000, though larger policies can offer up to $1 million or more per occurrence.

CoverWallet  NEXT Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000 $2,000,000
Sexual misconduct coverage included? No No No No Can be included
License defense coverage included? No No No No Can be included
Deductible  $500 $500 $500 $50/$10,000 $500

 

Business Owner’s Policy for Nannies

A business owner’s policy (BOP) combines various insurance policies into one comprehensive package, simplifying coverage for nannies. A BOP typically includes general liability and commercial property insurance. Situations where this coverage would be useful include:

  • Covering medical expenses for a customer injured on your commercial property.
  • Paying to replace a customer’s property damaged while on a nanny job.

 Coverage limits are usually around $1 million, but this can vary depending on your policy options.

CoverWallet NEXT (Best) Thimble  The Hartford Hiscox
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Commercial property coverage limit  $50,000 $320,000 $25,000/$500,000 $35,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes

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 Commercial Auto Insurance for Nannies

Commercial auto insurance provides a suite of policies to protect vehicles used for business purposes. Situations where this policy is beneficial include:

  • Getting into a car accident while transporting children as a nanny.
  • Having your work vehicle stolen while parked at a client’s house.

Common components of commercial auto insurance include:

  • Collision: Covers repair or replacement costs if your vehicle is involved in an accident with another vehicle.
  • Comprehensive: Covers physical damage from non-collision incidents like fire, theft, or vandalism.
  • Liability Coverage: Covers legal judgments and medical expenses if you are found at fault.

Insurance companies generally require a minimum of $100,000 per vehicle for coverage. However, a policy with at least $500,000 in coverage is recommended to cover expensive liabilities.

 Nanny Workers Compensation Insurance

Workers’ compensation insurance provides coverage if a nanny is injured and unable to work. For employed nannies, this insurance is typically provided by the family employing them. Examples include:

  • Injuring your leg while cleaning up children’s toys, limiting your ability to work.
  • Slipping and falling on the job, resulting in temporary inability to work.

Workers’ compensation benefits usually have a waiting period of about seven days. Processing a claim can take around a month.

The employer is responsible for paying workers’ compensation premiums.  

Employer’s Liability Insurance for Nannies

 Employer’s liability insurance protects a business owner from costs associated with employee lawsuits. This insurance covers claims related to an employer’s negligence in preventing work-related injuries or diseases. Costs covered include:

  • Attorney fees
  • Legal judgments
  • Settlements

 

Nanny Insurance Cost

The average nanny insurance cost is $60 per month or $720 per year for $1 million in general liability coverage. Factors affecting premium costs include claims history, business history, policy limits, deductibles, revenues, and location.  

Cost per Month Cost per Year Deductible
General liability insurance $60 $720 $0-$500
Professional liability insurance $65 $780 $500-$1,000
Commercial property insurance $80 $960 $1,000-$2,000
Business owner’s policy $150 $1,800 $500-$1,000
Workers compensation insurance $110 $1,320 $2,500-$5,000
Commercial auto insurance $78 $936 $500-$1,000
Unemployment insurance $100 $1,200 $500-$1,000
Excess liability insurance $64 $768 $500-$1,000

 

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Best Nanny Insurance Companies

 NEXT 

NEXT offers general liability, workers’ compensation, and tools and equipment insurance to help you build a comprehensive nanny insurance policy. They also provide childcare-focused policies that can save you up to 10% when bundled. NEXT has an A- rating from AM Best for financial security and a B+ rating from the Better Business Bureau.

Average cost: $15 per month 

Our rating: 10/10

Pros

  • Best overall
  • Issues online proof of insurance instantly
  • Fastest general liability insurance for nannies
  • Great customer service and reputation
  • Excellent rates
  • Outstanding value for money
  • Get a 10% discount when you buy two or more policies

Cons

  • None found

 

The Hartford 

The Hartford offers essential business insurance for babysitters policy components like workers’ compensation, general liability, business owner’s policy, and commercial auto insurance. Their workers’ comp policy, with quotes as low as $13 per month, includes access to 65,000 pharmacies for prescription drugs. The Hartford has an A+ rating from AM Best.

Average cost: $36 per month 

Our rating: 10/10

Pros

  • Long history of industry experience
  • Quick quotes through an online portal

Cons

  • Not available in some states

 

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CoverWallet

CoverWallet is an insurance broker with a digital marketplace connecting you with partners offering nanny insurance. CoverWallet has an A+ rating with the BBB and operates in 48 states across the U.S.

Average cost: $39 per month 

Our rating: 10/10

Pros 

  • Compare nanny insurance quotes from multiple companies online
  • HNOA coverage automatically included in general liability insurance
  • Excellent coverage variety

Cons

  • Not an insurance company but an insurance broker

 

Thimble

Thimble offers competitive policies with options like general liability, business owner’s policy, workers’ compensation, and more. Thimble has an A+ rating from the BBB and an A+ rating from AM Best.

Average cost: $43 per month 

Our rating: 10/10

Pros

  • Insurance glossary to help first-time buyers
  • Small-business friendly
  • Short-term coverage available
  • Multiple add-ons for general liability insurance

Cons

  • No commercial auto coverage available

 

Hiscox

Hiscox offers highly customized policy options tailored to your business needs. They provide general liability, workers’ compensation, business owner’s policy, and other critical components of nanny insurance policy. The company has a strong A rating from AM Best.

Average cost: $30 per month 

Our rating: 10/10

Pros

  • 5% discount for bundling multiple policies
  • Professional liability coverage can extend outside of the U.S.

Cons

  • Online quoting not always available

 

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