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You like your nanny, almost as much as your children do. You have a great relationship with your nanny that you expect to last for years. Suddenly, your nanny, while driving your car on a household errand, has an accident and suffers personal injuries.
She sues you for medical bills and loss of income. If you’re like many people, you probably don’t have the proper insurance coverage to protect you from her lawsuit. As risk management and insurance experts will tell you, your homeowner’s policy will not cover you. Household staff may make your life easier, but you may not be covered for liability for people you employ. Should your nanny be an undocumented alien or you pay her in cash, your problems could include immigration and the IRS.
How to Protect Yourself
Employment practices liability insurance, (EPLI). This is the best–and highest–coverage you could have. With typical limits ranging from $500,000 to $5 million, this coverage protects you from harassment and discrimination allegations from both employees and non-employees.
Add an EPLI endorsement to your personal liability or umbrella coverage. The lower cost and limits may fit your budget better than the separate policy. With coverage in the $250,000 area, your premium cost will be in the range of $500-$600 per year, as compared to around $2,000 annual cost for the stand-alone EPLI policy.
If you believe you face the huge liability risk with household help, contact Chivaroli Premier, a wholly-owned subsidiary of Chivaroli & Associates, Inc. in Westlake Village, CA, Idaho or Oregon. They’ll explain your risks and offer affordable solutions.