A home daycare isn’t always an option. There were over 169,000 nannies employed in the United States in 2021. The Congressional Research Service estimates that the average family spends over $4,000 a year on childcare every year. With childcare being an essential part of the American economy, it can often come with liabilities and exposures.
If you employ a nanny or are a nanny yourself, you will want a comprehensive insurance policy that covers you where it counts. In this article, you will learn about the components of good nanny insurance and critical areas of interest, including:
The different insurance policies nannies need
Their function and policy limits
Cost of premiums
The best companies
General liability is a good policy option for nannies because it covers some of the most common types of liabilities like personal injury and property damage. See some of the other categories of insurance that a nanny or babysitter might want for adequate insurance protection as described below.
|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|
|Products and completed operations aggregate limit||$2,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000||$1,000,000|
|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|
Nanny liability insurance will often include general liability coverage. This protects you from personal injury and property damage claims from your customers. Situations to use this policy include:
A nanny accidentally damages property in someone’s home that is not covered by a homeowner’s policy
While watching a kid, they accidentally damage one of that kid’s electronic devices
While these limits will vary by policy, you can typically get $1 million per occurrence and $2 million in aggregate coverage.
Yes, Self-employed nanny insurance often will include general liability insurance because it offers protection for some of the most common business liabilities.
|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|
|Name additional insureds?||Yes||Yes||Yes||Yes||Yes|
|Waiver of subrogation included?||Yes||No||Yes||Can be included||No|
|HIPAA coverage included?||No||No||No||No||No|
|Sexual misconduct coverage included?||No||No||No||No||Can be included|
|License defense coverage included?||No||No||No||No||Can be included|
Professional indemnity insurance policy covers liabilities that are caused by mistakes you make in your nanny job. Some examples include:
You neglect to consider a food allergy that causes one of the kids you are watching to need medical care
You make a scheduling error that makes you unable to provide service to a client, which they sue you for
One critical add-on you might need is an extending period add-on that gives you more time to file claims in a professional indemnity policy. This takes the stress off of trying to get a claim filed before the policy expires.
Professional liability coverage limits for babysitters are typically around $25,000 to $50,000. However, with a larger policy, it can have an occurrence limit of $1 million or higher.
Yes, professional indemnity is another name for a professional liability insurance policy. Another name for this type of policy is errors and omission insurance.
Abuse and molestation policy add-ons would be a good pick-up for nannies since they will often deal with kids. This policy protects you from costs associated with being accused of abusing one of the children you are in charge of.
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|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|Building coverage limit (minimum)||$50,000||$340,000||$25,000/$500,000||$35,000||$25,000|
|Contents coverage limit (minimum)||$50,000||$35,000||$25,000/$500,000||$35,000||$15,000|
|Money and securities||Excluded||$2,500||$1,000||Excluded||Included|
|Lock and keys||Excluded||$2,500||Excluded||Excluded||Included|
|Business interruption floater||Excluded||Included||Included||Excluded||Included|
|Equipment breakdown floater||Excluded||Included||Excluded||Excluded||Included|
|Inland marine insurance floater||Excluded||Excluded||$10,000||Excluded||Excluded|
|Employee dishonesty floater||Excluded||$5,000||$2,500||Excluded||Excluded|
Insurance for nannies and babysitters with commercial property protection will cover the costs if your business property is damaged. It also covers personal business property that is on or near your business premises. Some examples are listed below.
A thief breaks into your business property and steals a laptop you use for your business
Constant winds or hails causes you to need to replace some parts of your business building
Commercial property coverage limits average around to about $60,000 for the duration of the policy.
Since babysitters often conduct some business activities from home, they might want to look into babysitter insurance that features home-based business coverage instead. This similar policy is tailored to protect home business owners and their unique needs.
For nannies, insurance for nanny in home of their clients may not need this coverage since they are often considered employees and are protected under insurance policies that the homeowner has.
|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|
A business owner’s policy is a combination of insurance policies that make for simplified nanny insurance coverage. It includes policies like general liability, commercial property, and more. Examples of when to use this coverage include:
Medical expenses for a customer that is hurt on your commercial property
If you accidentally damage customer property while on a nanny job and need to pay to replace it
Typically your business must be in a low-risk industry and rent or own a small commercial space.
Business owner’s policy will have a coverage limit of $1 million typically, but this limit can be different depending on your policy options.
Business ordinance coverage can help you keep up with maintaining your commercial building if you live in an area that has updated building codes.
A communicable disease add-on to the property coverage of a BOP will be a good option for nannies if their services get canceled due to an outbreak of a contagious disease. This can cover the resulting costs for cleaning or replacing infected business property.
|Covers hired and borrowed equipment?||$3,000/$10,000||$2,500/$5,000||No||Yes|
|Miscellaneous equipment also covered?||$5,000/$10,000||No||Yes||Yes|
|Offered as an endorsement to general liability insurance?||Yes||Yes||Yes||Yes|
Tools and equipment insurance is a policy that covers the costs to repair or replace tools or equipment that your business uses. A nanny or babysitter liability insurance policy with this coverage could also help replace your movable tools in the event that they become stolen. Some situations this policy applies to include:
Your nanny bag that contains essentials like a first aid kit gets stolen and needs to be replaced
If the tools you use to cookfor the children get damaged by one of the kids, you could get them repaired or replaced
Typically, you can get moveable tools under $10,000 repaired or replaced with your insurance policy.
Yes, electronic equipment like cell phones and laptops you use for work would be covered under this insurance policy.
Commercial auto insurance offers a suite of policies that protect the vehicle that you use for your business. Examples of when this policy is useful include:
While transporting the kids you are watching as a nanny, you get into a car accident
Your work vehicle gets stolen while it is parked at your client's house
Commercial auto insurance is made up of components that each provide a different aspect of coverage. Common policy options include:
Collision–Covers costs to repair or replace your vehicle if it gets in an accident with another vehicle
Comprehensive– Covers many instances of physical damage to your car like fire, theft, and vandalism
Roadside assistance–Helps you pay for services like towing if your car breaks down
Rental reimbursement–If you need to rent a vehicle for a valid reason, this policy helps reimburse you
Uninsured/underinsured motorist coverage– Can cover a gap that may exist when another driver's insurance cannot cover damage costs
Liability coverage–Covers costs that you are found to be at fault for like legal judgments and medical fees
Commercial auto coverage limits must be at least $100,000 per vehicle to get coverage from an insurance company. It is recommended that you get a policy of at least $500,000 to cover expensive liabilities.
Excess liability insurance is an add-on policy that pays for additional coverage on an underlying primary policy above its standard limit. Some examples are listed below.
Your general liability policy only covers $1 million, but you purchase $500,000 in excess liability for a total coverage of $1.5 million
A commercial auto policy only covers $500,000, but you can add an additional $500,00 to complement the primary coverage.
Yes, excess liability only kicks in with your primary insurance policy has been exhausted.
No. An excess liability policy does not mean you have to pay for two deductibles now. Since it is added to an already existing policy, the standard deductible would apply.
Workers comp insurance nanny provide coverage when a nanny is unable to work due to an injury. If you are working as a nanny, this will be paid for by the family who employs you. Examples include:
You hurt your leg while cleaning up the children’s toys and are limited in the tasks you can do
You slip and fall while on the job, causing you to be unable to work for a time
Workers’ compensation benefits usually have a waiting period of around seven days that you are out of work. After that, you must process a claim that can take around a month.
The employer is the one responsible for paying workers’ compensation premiums to cover their workers. Some policies allow a worker to volunteer to pay for part of their own coverage as well. But generally, the employer is responsible for paying.
Employers liability insurance for a nanny protects a business owner from costs that come from an employee lawsuit. This grants protection against claims made due to an employer’s negligence in preventing a work-related injury or disease from happening. This policy covers costs that include:
These two policies aren’t that different from each other. In fact, worker’s compensation often contains employer’s liability insurance as part of its policy selection. Employer’s liability insurance protects the employer for things they are liable for, while worker’s comp provides worker benefits regardless if the employer is at fault.
Nanny unemployment insurance is a policy that provides cash benefits to workers when they file for unemployment. To qualify for eligibility, you must meet the following requirements.
|Unemployed at no fault of your own||This means that as a nanny, you must have been let go because of lack of work or some other reason that is not in your control|
|Meet work and wage requirements||You must have earned a certain amount of wages to qualify and have worked for an established time period|
|Follow any additional state requirements||States may require workers to satisfy additional requirements. The US Department of Labor can help determine how to file in your state.|
|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|
|Tools and equipment insurance||$62||$744||$500-$1,000|
|Workers compensation insurance||$110||$1,320||$2,500-$5,000|
|Commercial auto insurance||$78||$936||$500-$1,000|
|Excess liability insurance||$64||$768||$500-$1,000|
The average nanny insurance cost is $60 per month or $720 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, revenues, and location. Here’s a table showing how much the recommended companies charge for a $1 million general liability insurance:
|Company||Estimated Monthly Cost||Best for|
|NEXT||$15||Overall best insurance for Nannies and babysitters|
|The Hartford||$36||Workers comp for nannies|
|CoverWallet||$39||Tracking your nanny policy components|
|Tivly||$41||Nanny insurance comparison shopping|
|Thimble||$43||First-time nanny insurance buyers|
|Hiscox||$30||Completely customized nanny insurance|
Compare nanny insurance quotes to get a better understanding of how expensive your premiums will be. Start by clicking the “Get Quotes” button on this page.
Get all the best quotes from leading providers in a click of a button!
Take a look at these companies that provide competitive nanny insurance quotes and policies that protect your nanny business from injury costs, property damage, and more. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
Issues an online proof of insurance instantly
Fastest general liability insurance for nannies
Great customer service and reputation
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT has policies like general liability, workers’ comp, and tools and equipment insurance to help you build a fantastic nanny insurance policy. They also offer childcare-focused policies that let you save up to 10% when you bundle them together. Next has an A- rating from AM Best which measures it financial security. It also has a Better Business Bureau rating of B+.
Best for: Overall best insurance for Nannies and babysitters
Average cost: $15 per month
Our rating: 10/10
Long history of industry experience
Get your quote quickly through an online portal
Some states are not covered
The Hartford will offer essential nanny policy components like workers’ compensation, general liability, business owner’s policy, and commercial auto insurance. The company has a great workers’ comp policy with quotes as low as $13 a month that provide features like access to 65,000 pharmacies for prescription drugs. The Hartford has an A+ rating with AM Best.
Best for: Workers comp for nannies
Average cost: $36 per month
Our rating: 10/10
Compare nanny insurance quotes from multiple companies online
HNOA coverage automatically included to general liability insurance
Excellent coverage variety
Not an insurance company but an insurance broker
CoverWallet is an insurance broker with a digital marketplace to connect you with partners waiting to deliver nanny insurance. They have options like professional liability, worker's compensation, commercial auto, and general liability. CoverWallet has an A+ rating with the BBB and operates in 48 states across the US.
Best for: Comparing nanny insurance quotes online
Average cost: $39 per month
Our rating: 10/10
Over 200 partners available
Compare quotes over the phone
Personalized approach in granting coverage
Doesn’t write policies
Tivly is an insurance platform that leverages its large partner selection to make comparison shopping simple. They offer essential components to your nanny policy, like commercial property, commercial auto, and business owner’s policy. Tivly has 20 years of insurance industry experience and an A rating from the BBB. Call now to compare quotes over the phone.
Best for: Comparing nanny insurance quotes over the phone
Average cost: $41 per month
Our rating: 9/10
Insurance glossary to help first-time buyers
Short-term coverage available
Multiple add-ons available to general liability insurance
No commercial auto coverage available
Thimble offers competitive policies with options like general liability, business owner’s policy, worker’s compensation and more. If you are new to purchasing nanny insurance, their industry guide and insurance glossary can help you get educated on what policies would appeal to you. Thimble has an A+ from the BBB and an A+ rating from AM Best.
Best for: First-time nanny insurance buyers
Average cost: $43 per month
Our rating: 10/10
5% discount for bundling multiple policies
Professional liability coverage can extend outside of the US
Online quoting not available all the time
Hiscox offers focused policy options that are entirely customized to your business needs. They offer general liability, workers' compensation, business owner’s policy, and other important components of a useful nanny insurance policy. Hiscox has a long history of success. It has been a leading insurer for over 100 years and operates in 14 different countries. Hiscox maintains a strong A rating from AM Best.
Best for: Completely customized nanny insurance
Average cost: $30 per month
Our rating: 10/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!