Household Employment Liability Insurance for Domestic Staff

If you employ a nanny, housekeeper, personal chef, or estate manager, you are an employer under the law — and the exposures that come with that role deserve the same attention as any other part of your personal risk picture.

What Household Employment Liability Insurance Actually Covers

Domestic staff liability insurance addresses the legal and financial risks that arise when you employ workers in your home. Most high-net-worth households employ one or more domestic staff members without fully recognizing what that relationship creates from a liability standpoint. A single workplace injury — a fall on a wet floor, a back injury while moving furniture, a slip on an icy driveway — can result in medical bills, lost wages, and legal action that a standard homeowners policy will not cover.

 

The core coverages we place for household employers typically include:

 

  • Workers compensation for household employees: Required by law in most states when you employ domestic workers above a minimum hours or wage threshold. Covers medical expenses and lost income if a household employee is injured on the job.
  • Household employer liability: Protects you if an injured employee brings a civil claim beyond what workers comp provides.
  • Employment practices liability: Covers claims of wrongful termination, discrimination, harassment, or wage disputes brought by a current or former household employee.
  • Domestic staff umbrella coverage: Extends your liability limits above the base policy for serious claims that could otherwise threaten personal assets.

Do You Need Workers Compensation for a Nanny or Housekeeper?

In most states, yes. Workers compensation requirements for household employees are determined at the state level, and the thresholds vary — but they are lower than most employers expect. In New Jersey, for example, any domestic worker employed more than 35 hours per week triggers a workers compensation obligation. New York has a similar requirement. Florida's rules differ again. The consistent thread across states is that part-time employment, occasional work, or paying in cash does not exempt a household employer from coverage requirements.

 

If a household employee is injured and you do not carry workers compensation, you may be personally liable for all medical costs and lost wages, and you may face regulatory penalties on top of that. The coverage itself is not expensive relative to the exposure it addresses. The gap between what most homeowners assume their policy covers and what it actually covers is where the real risk lives.

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Our Approach to Private Client Risk Management

At MJM Global, we approach household employment liability the same way we approach every element of a private client relationship: by looking at the full picture before recommending coverage. We review your existing homeowners policy and personal umbrella to identify gaps, confirm your state's workers compensation requirements, and place coverage with carriers that specialize in the personal lines and private client space. Our goal is that no part of your household risk is left unaddressed because it fell between policies.

 

We serve high-net-worth families across New Jersey, Florida, and nationally, and we coordinate domestic staff coverage as part of a broader personal risk management program that may also include high-value homeowners insurance, valuable collections coverage, and luxury automobile insurance.

Frequently Asked Questions About Domestic Staff Liability Insurance

  • What is household employment liability insurance?

    Household employment liability insurance covers the legal and financial risks that come with employing domestic workers in your home. It typically includes workers compensation, employer liability, and employment practices liability — protections that a standard homeowners policy does not provide.

  • Do I need workers compensation for a nanny or housekeeper?

    In most states, yes. Workers compensation requirements for household employees are governed by state law, and the thresholds that trigger coverage obligations are often lower than employers expect. We can confirm the specific requirements for your state and place coverage that meets them.

  • What does employment practices liability cover for household employers?

    It covers claims brought by current or former household employees alleging wrongful termination, discrimination, harassment, or wage and hour violations. It pays for defense costs and, where applicable, settlements or judgments — regardless of whether the claim has merit.

  • Does my homeowners policy cover household employee injuries?

    Generally, no. Most homeowners and personal umbrella policies exclude workers compensation obligations and employment-related claims. A separate domestic staff liability policy is required to address these exposures properly.

  • Can MJM Global coordinate domestic staff coverage with my other personal insurance?

    Yes. We review your existing personal lines program — homeowners, umbrella, auto, and collections coverage — and place domestic staff insurance in a way that eliminates gaps and avoids redundancy. We work with carriers that specialize in the private client space and understand the full scope of household employment risk.