As an employer, the legal duty lies with you to take out “Employer’s liability insurance” and to provide a safe workplace for your nanny (employee). Your nanny may be injured at work or may become ill as a result of working while in your employment. She might try to claim compensation from you if she believes you are responsible. Employer’s Liability Insurance would pay for the damages awarded and associated costs.
If you don’t have Employer’s Liability Insurance, your nanny could make a claim against you, holding you responsible for the accident. This could result in you paying vast amounts from your own pocket and would affect the relationship you have built up with your nanny. Plus you can be fined up to £2500 for any day which you are without suitable insurance if you do not hold a current employer’s liability insurance policy which complies with the law.
The easiest way to obtain employer’s liability insurance is to speak with your household insurers. Some household policies may automatically include this cover or you can ask that your policy is extended to cover it. If your household building and contents policy does not cover anybody working in your employment in your house then you will have to get a separate policy. This cost lies with you as the employer. You must be insured for at least £5 million. In practice, most insurers offer cover of at least £10 million in order to cover any extra costs such as legal fees.
You must also display the certificate of insurance or make sure that it is available to be seen by your nanny. If you do not display the certificate of insurance or refuse to make it available to Health and Safety Executive inspectors when they ask, you can be fined up to £1000.
If your household policy doesn’t cover employer’s liability insurance, then PC Payroll & Legal can refer you to one of our affiliates, for you to have a bespoke insurance put in place to cover any employer’s liability.
Nannies, whilst working in the family home, often have access to the family car, i.e. for taking children to toddler group / swimming / classes and so on. It is important that you have the correct motor insurance in place. Most domestic insurance policies cover you, and named drivers, for social, domestic and pleasure purposes only. You must speak with your insurer to find out whether your motor insurance includes a nanny and her activities within this definition.
The cost of motor insurance lies with you as the employer.