Your nanny trips on a toy and breaks her wrist. Your housekeeper slips on a wet floor and needs physical therapy. Your caregiver lifts your parent wrong and herniates a disc.
These things happen. Workers' compensation is the insurance that covers them.
Most household employers don't think about workers' comp until something goes wrong. Whether your state requires it or not, it's worth understanding how it works and what happens without it.
What Workers' Compensation Actually Covers
Workers' comp pays for injuries and illnesses that happen on the job.
If your nanny gets hurt while working at your home, a workers' comp policy covers:
| What's Covered | Example |
|---|---|
| Medical bills | ER visit, surgery, prescriptions |
| Lost wages | Partial income replacement while recovering |
| Rehabilitation | Physical therapy, occupational therapy |
| Disability benefits | Ongoing support for permanent injuries |
| Death benefits | Survivor payments in fatal accidents |
Workers' comp does not cover injuries that happen off the job, pre-existing conditions, or illnesses unrelated to work. It's separate from health insurance — your nanny could have great health coverage and still need workers' comp for a workplace injury. The big difference is that workers' comp includes wage replacement, which health insurance doesn't.
Which States Require It for Household Employers?
About a dozen states require household employers to carry workers' compensation insurance. The rest leave it optional — though "optional" doesn't mean "unnecessary" (more on that below).
Here are the states with requirements for household employers:
| State | Requirement | Notes |
|---|---|---|
| New York | All household employees | No exceptions — even part-time. Strict enforcement. |
| California | All employees | Applies to any employer with 1+ employees |
| New Jersey | All employees | Covers domestic workers |
| Hawaii | All employees | Required from first day of employment |
| Illinois | All employees | Applies to anyone working in the home |
| Connecticut | 1+ household employees | Required if you employ anyone regularly |
| Massachusetts | All employees | No minimum hours threshold |
| Minnesota | All employees | Applies to household workers |
| Ohio | 1+ employees | Must use state fund (monopolistic state) |
| Delaware | All employees | Applies to domestic workers |
| Iowa | All employees | Household employers included |
| South Carolina | 4+ employees | Unlikely for most households |
| New Hampshire | All employees | Domestic workers covered |
If your state isn't listed above, workers' comp for household employees is generally not required. But state laws change, and some states have thresholds based on hours, wages, or number of employees that could apply in edge cases. Check your state's specific requirements to be sure.
New York deserves special emphasis. The penalties for non-compliance are severe — fines of $2,000 per 10-day period without coverage, plus potential criminal charges. New York takes this more seriously than any other state.
What It Costs
Workers' comp is priced based on payroll — a rate per $100 of wages paid. The rate for domestic workers is low compared to riskier industries.
Typical annual cost for a household employer: $200–$500/year.
| Annual Wages | Estimated Annual Premium |
|---|---|
| $20,000 | ~$150–$250 |
| $30,000 | ~$225–$375 |
| $40,000 | ~$300–$500 |
| $52,000 | ~$400–$650 |
Rates vary by state, the specific insurer, and your claims history. States with mandatory coverage (like New York and California) tend to have well-established pricing. You can often get quotes online in a few minutes.
For context, that's roughly $15–$40/month — a small price compared to the potential cost of an uninsured workplace injury.
Where to Get Coverage
You have three main options for purchasing workers' comp as a household employer:
State Fund
Some states operate their own workers' compensation insurance funds. In monopolistic states — Ohio, North Dakota, Washington, and Wyoming — you must buy from the state fund. In other states, the state fund competes with private insurers.
State funds are often the easiest path for household employers because they're designed to cover small employers that private insurers might not want to bother with.
Private Insurance
Most states allow you to buy workers' comp from private insurance companies. Large carriers like Hartford, Travelers, and State Farm sell household employer policies. Your existing homeowner's insurance company is a good first call — they may offer a workers' comp policy at a bundled discount.
Important: Your standard homeowner's policy almost certainly does not include workers' comp coverage. Some homeowner's policies cover occasional workers (like a one-time handyman), but regular household employees are excluded. You need a separate workers' comp policy or a specific endorsement added to your homeowner's policy.
Insurance Marketplaces
Online platforms like Simply Insured, The Hartford, and state-specific marketplaces let you compare quotes from multiple carriers. For household employers, these are often the fastest way to find coverage.
What Happens If You Don't Have It
The stakes depend on whether your state mandates coverage.
If Your State Requires It
Operating without required workers' comp insurance is illegal. Penalties vary by state but can include:
| Consequence | Details |
|---|---|
| Fines | $1,000–$50,000+ depending on state |
| Criminal charges | Misdemeanor in most states, felony in some |
| Personal liability | You pay all injury costs out of pocket |
| Stop-work orders | Some states can prohibit you from employing anyone |
New York is the strictest: $2,000 per 10-day period of non-compliance, plus the possibility of misdemeanor criminal charges. California imposes fines of up to $10,000 for the first offense.
If Your State Doesn't Require It
No fine, no penalty — but no protection either. If your nanny gets seriously injured at work, you could be:
- Sued directly for medical costs, lost wages, and pain and suffering
- On the hook for all medical bills — a broken bone can easily run $10,000–$50,000
- Liable for lost wages during recovery
- Exposed to a negligence lawsuit with no cap on damages
Workers' comp is a trade-off: your employee gets guaranteed coverage without having to prove fault, and you get protection from lawsuits. Without a policy, that trade-off disappears — and your nanny's only recourse after a serious injury is to sue you personally.
A single workplace injury without insurance can cost more than a lifetime of premiums.
Why Some Families Get It Even When It's Not Required
Even in states with no mandate, plenty of household employers voluntarily carry workers' comp.
Financial protection. A policy that costs $300/year protects you from a claim that could cost $30,000 or more.
Peace of mind. If your nanny gets hurt making lunch or carrying your child, you don't want the first thought to be "who's paying for this?"
Professionalism. Experienced nannies, especially those who've worked for agencies, may ask whether you carry workers' comp. Having it shows you take the employment relationship seriously.
If your nanny works full-time and handles physical tasks like lifting kids, cleaning, or cooking, the $200–$500/year for coverage is a straightforward call. Use our calculator to see the full cost picture of employing your nanny legally.
Workers' Comp vs. Health Insurance
People mix these up a lot, but they cover different things.
| Workers' Comp | Health Insurance | |
|---|---|---|
| Covers | On-the-job injuries only | Illness and injury anywhere |
| Who pays | Employer (you) | Varies — not required for household employers |
| Wage replacement | Yes — partial lost wages | No |
| Required? | Depends on state | Not for household employers |
| Filed by | Employee, against your policy | Employee, through their own plan |
If your nanny has health insurance and gets hurt at work, workers' comp is still the primary coverage for that workplace injury. Health insurance would be secondary — and your nanny's health insurer may actually pursue you for reimbursement if there's no workers' comp policy in place.
FAQ
Does my homeowner's insurance cover my nanny's injuries?
Almost certainly not by default. Standard homeowner's policies exclude regular household employees. Some insurers offer an endorsement (add-on) for domestic workers, but it's not automatic. Call your insurance company and ask specifically about coverage for a household employee — don't assume you're covered.
Do I need workers' comp if my nanny only works part-time?
In states that require it — yes. New York, California, and most other mandatory states have no minimum hours threshold. If someone works for you regularly, even part-time, the requirement applies. In states without a mandate, the decision is yours, but the liability risk exists regardless of hours.
Can my nanny sue me if I have workers' comp?
Generally no — that's one of the main benefits. Workers' comp is an "exclusive remedy," meaning your employee accepts the guaranteed benefits in exchange for giving up the right to sue you for the injury. Without a policy, there's no such protection, and your nanny can pursue a personal injury lawsuit with no cap on damages.
Is workers' comp the same as disability insurance?
No. Workers' comp covers injuries that happen specifically on the job. Short-term and long-term disability insurance covers the inability to work regardless of where or how the injury occurred. Some states — like New York, California, New Jersey, and Hawaii — require separate disability insurance for employees, which is yet another requirement. Check your state.
What should I do if my nanny gets injured at work?
First, make sure they get medical attention. Then report the injury to your workers' comp insurer as soon as possible — most states require reporting within 24–72 hours. Document what happened, when, and where. If you don't have workers' comp, consult an attorney promptly, because you'll be personally responsible for your employee's medical costs and lost wages.
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Check your state's rules. Requirements vary widely — see our state-by-state guide for specifics.