A Guide to Workers’ Compensation for Caregivers

The first question many families ask when hiring a nanny, home health aid, or senior caregiver is, why do I need to provide workers’ compensation? The simple answer is that you’re most likely required to by law. Nannies and senior caregivers are domestic employees, and as their employer you’re usually required to provide them a level of protection in case they’re injured on the job. A better answer is that it’s worth it. Workers’ compensation is a two way street, providing financial support for caregivers in their time of need, as well as protecting your family from civil lawsuits over workplace injuries. 

It may seem strange to think about workplace injury in the context of your home. For many people, workers’ compensation brings to mind images of warehouses, hospitals and construction sites, where the risk of injury is obvious and imminent. However, a fall down the stairs, burns from a gas stove or even a particularly dire lego-to-the-foot incident can all have financial and legal ramifications if your household isn’t properly protected. 

REAL WORLD EXAMPLE:

A caregiver injured her back in a car accident on the way to pick up groceries for her employer. Her injuries not only required $15,000 worth of surgery and rehab, but also kept her from working for 12 weeks. Based on her average wage, workers’ compensation would have covered about $18,000. However, because her employer didn’t have workers’ compensation, the family was forced to pay for her losses out of pocket.