For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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.