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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:
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.
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:
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:
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:
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:
Common components of commercial auto insurance include:
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.
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:
nanny workers comp insurance 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.
While general liability and workers’ compensation policies cover many aspects of a nanny’s job-related risks, nanny medical insurance is another important consideration.
Similarly, families hosting au pairs should also consider au pair insurance to ensure their au pair has access to proper healthcare. Offering medical coverage can help retain both nannies and au pairs and ensure their well-being, especially for full-time, live-in caregivers. While it’s not always mandatory, it’s a valuable benefit for peace of mind.
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:
Get all the best quotes from leading providers in a click of a button!
Commercial auto insurance provides a suite of policies to protect vehicles used for business purposes. This coverage is essential for nannies and au pairs who use their vehicles for work, as it protects them from significant financial liabilities. Situations where this policy is beneficial include:
Families who employ au pairs should also consider au pair car insurance to cover any accidents or damage caused while the au pair is driving for work purposes. This ensures both the au pair and the family are financially protected.
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 |
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
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
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
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
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
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