As a household employer in New York State, you are required by law to provide and maintain Workers’ Compensation coverage for your nanny or other household employee.
Does Workers’ Compensation benefit the Employer or the Employee?
A single work-related injury or illness could leave an employer liable for thousands of dollars in medical bills and lost wages. Workers’ Compensation insurance is considered a benefit to the employer because it covers necessary medical bills and a portion of the employee’s wages if they become injured or ill on the job, ultimately protecting the employer from a lawsuit. Another benefit is the security knowing that coverage is available in the event of an employee injury on the job.
What is the difference between Workers’ Compensation and Disability Insurance?
Workers compensation protects the employer if their employee is injured on the job or becomes sick as a result of a work related illness. Disability insurance is an employee benefit that compensates employees for some lost wages due to an illness or injury that is not work related.
What does Workers’ Compensation cover?
Depending on state laws and regulations, workers’ compensation may cover:
- Medical expenses
- Rehabilitation services
- Compensation for some lost wages
- Vocational training, if necessary
Is Workers’ Compensation covered under my Homeowner’s policy?
Household employers should never assume that this liability is covered under their Homeowner’s Insurance Policy. A single work-related accident could leave an employer liable for medical bills and lost wages, so it is important to ensure you are covered. When in doubt, check with your Homeowners insurance carrier.