Do I Need Workers’ Comp for a Nanny or Housekeeper?

Q: Do I need workers’ comp for a nanny or housekeeper?

Often yes, many states require it once a household employee crosses an hours or wage threshold, and without it an injured worker can sue you directly.

Q: Does homeowners insurance cover a household employee’s injury?

Not adequately, it excludes employment claims. Workers’ compensation is the correct coverage.

Q: Can I pay household staff as a 1099 contractor?

Usually not legitimately, if you control the work they are an employee, and misclassification creates tax and liability exposure.

Quick answer: Often, yes. Many states require household employers to carry workers’ compensation once a worker passes an hours or wage threshold, and without it an injured employee can sue you directly. A homeowners policy does not substitute, and employment claims like wrongful termination need separate EPLI coverage.

When You Are Legally a Household Employer

If you control how and when the work is done, your nanny, housekeeper, estate manager, or chef is your employee, not an independent contractor, regardless of how you pay them. That status carries two obligations standard homeowners coverage does not address: workers’ compensation for on-the-job injuries, and employment practices liability for claims like wrongful termination, harassment, or discrimination.

How to Protect Yourself

Confirm your state’s workers’ compensation requirement for household employees
Place workers’ compensation so an injury never becomes a direct lawsuit
Add EPLI or a domestic-staff endorsement for employment claims
Classify staff correctly as employees, not 1099 contractors
Keep written offer letters, pay records, and a household handbook

For the full picture, see our guide to household staff liability.

Frequently Asked Questions

Do I need workers’ comp for a nanny?

Often yes. Many states require it once a household employee crosses an hours or wage threshold, and without it an injured worker can sue you directly.

Does homeowners insurance cover a housekeeper’s injury?

Not adequately. Homeowners may include limited medical payments but excludes employment claims, workers’ compensation is the correct coverage.

Can I pay household staff as a 1099 contractor instead?

Usually not legitimately. If you control the work, they are an employee, and misclassification creates tax and liability exposure.

What is EPLI?

Employment practices liability insurance, which covers wrongful-termination, harassment, and discrimination claims that homeowners policies exclude.

Do You Know Your Household-Employer Exposure?

Request a Complimentary Review

When You Are Legally a Household Employer

How to Protect Yourself

Frequently Asked Questions

Protect What You’ve Built

Do You Know Your Household-Employer Exposure?

Locations We Protect

Do I Need Workers’ Comp for a Nanny or Housekeeper?

When You Are Legally a Household Employer

How to Protect Yourself

Frequently Asked Questions

Protect What You’ve Built

Go Deeper

Household Staff Liability

Liability Coverage

How Much Liability & Umbrella Do You Need?

Do You Know Your Household-Employer Exposure?

Locations We Protect