Published November 10th, 2025 | Privacy and Editorial
If you live in California and have a nanny or any household employees, like a housekeeper or caregiver, you are required to carry a workers’ compensation insurance policy (Labor Code Section 3700). Surprisingly, this includes family members.
Most families may not realize that hiring a nanny or other household employee triggers legal insurance requirements. Assuming the process is complete after you hire a nanny can lead to overlooking important insurance needs.
These policies help employees with medical expenses and lost wages from work-related injury or illness. They also protect you as the employer, too, because workers who accept benefits generally forget their right to sue the employer regardless of fault. When a nanny is hired or when an employee works a certain number of hours, state law may require workers’ comp insurance for all domestic employees, including senior caregivers. A workers’ compensation policy protects employers by providing legal protection and covering medical bills and lost wages if a household employee is injured while working in the client’s home.
Most homeowners’ insurance policies will provide some workers’ compensation coverage, but you should contact your insurance provider to verify whether it is included and sufficient for the situation. Many families include their nannies as drivers on their personal auto insurance or existing policy, but should verify coverage limits and whether a personal vehicle used for work is covered. Homeowners policies and a homeowner’s policy may provide some coverage, but policy limits may not be sufficient for all scenarios, such as a car accident involving a nanny. There may be considerations for your auto policy as well, especially regarding personal auto insurance and the use of a personal vehicle for work-related activities.
When the required coverage is not included, endorsements can usually be added. Planning for proper coverages, including workers comp insurance, general liability insurance, and business insurance, is essential for legal protection and to protect both the employer and the employee. If you have any specific questions about your personal situation, we’re more than happy to discuss them with you. Consulting an insurance agent can help clients determine the right workers’ compensation policy and other coverages for their specific plan, including health insurance if desired.
What is workers’ compensation insurance?
Workers’ compensation insurance is a crucial form of protection for both household employees and household employers. It’s designed to cover medical expenses and lost wages for employees who are injured or become ill due to their job. In California, most employers are required by law to have workers’ compensation insurance, and this requirement extends to household employers.
Workers’ compensation insurance provides several important benefits:
- Medical coverage: It pays for medical treatment required due to work-related injuries or illnesses.
- Disability benefits: It provides wage replacement benefits for employees who are unable to work due to their injury or illness.
- Death benefits: It provides financial support to the employee’s dependents if they die as a result of a work-related injury or illness.
Most household employers in California are required to carry workers’ compensation insurance if they have household employees who work 52 or more hours per week during any 90-day period. However, it’s always best to consult with an insurance professional to understand the specific requirements for your situation.
How to Get Workers’ Comp Insurance
Getting workers’ compensation insurance for your household employees is a straightforward process. You can typically obtain a policy through a private insurance company, a state-run insurance fund, or self-insurance (if your business is large enough).
When choosing a workers’ compensation policy, consider the following:
- Coverage: Make sure the policy covers all the necessary benefits, including medical treatment, disability benefits, and death benefits.
- Cost: Workers’ compensation insurance premiums are typically based on the type of work, the number of employees, and the employer’s claims history. Shop around to find the best rate.
- Insurance provider: Choose a reputable insurance provider with a good track record of handling claims. The insurance provider should also be able to provide guidance and support throughout the claims process.
In California, if you’re unable to find workers’ comp coverage in the private market, you may be eligible for coverage through the State Compensation Insurance Fund (SCIF). The SCIF is a public enterprise fund that offers workers’ compensation insurance to California businesses, including those that may have difficulty finding coverage in the private market.
What Are Your Workers’ Comp Obligations?
As an employer, you have several obligations when it comes to workers’ compensation insurance. These include:
- Carry workers’ compensation insurance: As mentioned, in California, most employers are required to carry workers’ compensation insurance, including household employers. Failure to do so can result in significant penalties.
- Post workers’ comp information: You should post information about workers’ compensation insurance in a prominent place in your home, such as in the kitchen or another common area. This information should include the name and contact information of your insurance provider, and a statement that your employees have the right to workers’ compensation benefits if they are injured or become ill at work.
- Report injuries promptly: If a household employee is injured at work or becomes ill due to their job, you must report this to your insurance provider as soon as possible. Failure to report an injury promptly can affect the employee’s ability to receive benefits.
- Cooperate with the insurance provider: You should cooperate fully with your insurance provider during the claims process, providing any information or documentation they need to process the claim.
Remember, workers’ compensation insurance isn’t just about legal compliance – it’s also about doing the right thing by your employees and protecting yourself from financial risk.
Published November 10th, 2025. Privacy and Editorial. For a consultation, email hello@falconwest.com
Homeowners with contractors working on the property should also understand additional insured for home renovations.
To better understand the current state of homeowners coverage in California, see our California homeowners insurance guide.
While reviewing your coverage, it’s also a good time to look at our home safety checklist.