It is a common practice for Californian’s to hire outside help to assist with family and home.  All Homeowners Policies include automatic Worker’s Compensation coverage for “occasional workers”, but how do you determine what is an occasional worker?  The following terms and conditions must be met before the automatic coverage is applied to your policy.  Within the 90 days immediately prior to the date of injury, the employee must have been engaged in employment by you for no less than 52 hours, and must have earned no less than $100 in wages.  This Workers Compensation endorsement is intended to cover the occasional worker like a housekeeper or a babysitter who comes on a weekly or semi-weekly basis.

If your Nanny works more than 20 hours per week and is paid more than $100, they would be considered a full-time employee, not occasional.  In that case, the automatic coverage would not be sufficient and you need to contact your Insurance Agent to add an endorsement for In servant or Out servant Worker’s Compensation.

The Worker’s Compensation provided on a Homeowners Policy does not include coverage for independent contractors or temporary employees.  This means if a Handyman or Plumber comes to your home to do some repairs, they would not be eligible for this coverage.  We always suggest that you make sure any handyman or contractor you hire has General Liability Insurance as well as Workers Compensation or their own Health Insurance.

To best protect yourself, when you have an occasional employee, you should keep a log of the times they worked and pay them by check or some other traceable method of payment.  In any case, it is always recommended to discuss your situation with your agent.  They will help you make the right decision for the best coverage and protection.