This help centre article has been written for the Koru Kids nanny service
If you're employing a nanny then you need employers' liability insurance (It's a legal requirement to hold cover of at least £5m).
The good news is that most 'home contents' policies will already include this, so you should check with your existing policy first since you're probably already covered. The only provider we know that doesn't include employer's liability is the Co-op.
If it turns out you don't have employer's insurance, then you can purchase it from around £100. Morton Michel is a reputable supplier of insurance who specialise in childcare related insurance. Kindly note, we do not have a referral relationship with Morton Michel, and other providers are available!
What does Employers' Liability Insurance do?
Employers’ Liability insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you.
For example, if your nanny slips on a wet floor, or burns themselves while preparing food for your children, this would come under Employers' Liability insurance. The insurance can cover compensation costs including medical costs, loss of income, legal costs, and other damages.
It usually covers your nanny wherever they're undertaking work for you, within the UK. So if they suffer an injury while taking the kids to the park, or on the way home from school, as a result of their work for you, then the policy should cover the incident.
Please note: every policy is different, so it's important to check the specific inclusions and exclusions of your provider.
What does Employers' Liability not do?
It only provides cover for claims brought against the employer. It doesn't provide any cover for mistakes or damages caused by the nanny.
You can find out more about Employers' Liability Insurance from the Chartered Insurance Institute.
If your nanny tripped over a cable and knocked the TV over, there might be two types of claim arising from the incident, which would be covered by different policies.
Claim 1: employee injury. If the nanny broke their knee in the fall, they may make a claim against the employer to cover loss of earnings while they're recovering. This would be covered by the Employers' Liability Insurance.
Claim 2: property damage. The broken TV itself would not be covered by Employers' Liability, because it is not directly to do with the employer-employee relationship. This would be a separate claim for property damage, which would fall under either the parent's home content's insurance policy, or the nanny's public liability insurance.
Who would pay for property damage?
This depends on who is considered to be at fault. In the above scenario, the nanny only knocked over the TV because they tripped on a cable. In this sense, a workplace hazard cause the accident, so the fault lies with the employer. Thus, the employer would seek to recover the property damage costs from their home contents policy.
In an alternative scenario, a nanny might accidentally cause damage through their own fault (for instance, dropping an expensive vase). In this instance, the fault lies with the nanny, so it would be their responsibility to cover the costs. They may choose to do this through a direct payment to their employer, through salary deduction, or through a claim against the Koru Kids group policy for Public Liability insurance (or their own public liability insurance policy, where applicable). You can find out more the Koru Kids group policy for Public Liability insurance here.
Employers' Liability is a legal requirement if you're going to hire nanny. It should be covered in your home contents policy, but it's important that you check this before proceeding.
Tags: insured, employer insurance, indemnity, indemnify