We thought we’d talk about nanny and employer insurance this week, as lots of nannies, maternity nurses and employers are not always aware that they each should hold their own policies. For employers this is legal and mandatory; for nannies it is highly recommended but not currently a legal requirement.
For Nannies
Nanny insurance is public liability insurance for qualified or experienced nannies that care for a child or children aged 0 – 17, and / or pre- and post-natal mothers. Public Liability Insurance is not a legal requirement for nannies, however it is becoming increasingly common amongst professional nannies who want to demonstrate due responsibility to themselves and their charges. At Nannies of St. James we would always urge our nannies to take out nanny insurance.
Assuring a potential new employer that you are fully insured sends a strong and positive message that you take your responsibilities seriously, bringing an added level of peace of mind to both parties as you enter into a new partnership.
As a nanny’s insurance policy belongs to the nanny, often a nanny will fund her own insurance cover and the nannies must make the application themselves. Sometimes employers and nannies will split the cost, but employers should be aware that this is a taxable benefit and would need to be declared as a Benefit in Kind.
What does it cover?
As a guide, nanny insurance with Morton Michel, Childcare Insurance Specialists, costs between £64 and £90 per annum, and covers:
☑ Public Liability: £10 million
☑ Professional Indemnity: £100,000
☑ Legal Expenses: £100,000
☑ Third Party Property: £1,000
This type of insurance also covers nannies to work outside of the EU, for a maximum period of 90 days in any one period of insurance - provided that at least one parent is on the trip. The nanny must also have their own travel insurance for the duration of the trip.
For Employers
All employers are required by law to have at least £5 million worth of Employer’s Liability Insurance cover. This is a legal requirement and employers face fines of up to £2,500 for every day that they are without valid cover. If employers have household insurance already, they should check whether this includes Employers Liability for Domestic Staff already.
With Morton Michel, employers can insure household employees for approximately £100 per head, per annum. ☑ Limit of indemnity: £10,000,000 - This cover applies to England, Scotland, Wales, Northern Ireland, the Isle of Man and the Channel Islands and elsewhere in the world for a temporary basis.
For more information and to take out a new insurance policy, take a look at the following websites and specialist insurance providers.