You have just hired a full-time nanny to care for your children. That makes you, the homeowner, an employer and due to NY State Statute, requires purchasing Workers Compensation and NY Disability to protect your employee.
Your homeowner policy would exclude coverage for this exposure. So, where do we obtain this coverage? NY State offers a competitive market for obtaining both types of insurance. Some homeowner insurers are beginning to offer this coverage as an attachment. As an alternative to NY State, we represent carriers for disability insurance.
The way you address this responsibility might trigger tax concerns; this should be discussed with your tax advisor.
Should the full-time domestic be driving and shuttling your children as part of his/her duties and be injured in an auto accident, Workers Compensation coverage would be needed. This applies to undocumented workers as well.
A final thought: As an employer, you might want to purchase coverage to protect yourself. Lawsuits could be initiated for discrimination, sexual harassment or wrongful termination.
We are here to help. Call for a full explanation.