Do I need liability Insurance?

Question

I am starting my own nanny agency and am wondering what type of insurance I need. The answer I hear most is liability insurance. However, since the nanny's are not working for and a contract is signed by both the family and nanny, why do I need insurance? HELP!

Answer 1

I believe it depends on what state you reside in

Answer 2

A contract isn't going to be completely legally binding. You want to be able to protect your agency in case one of the nannys you supply to a family gets into trouble. I'm guessing that how this works is that you take a cut of what the nanny gets from the family in exchange for helping them find work?

You would definitely need to think about a lot of different options. Liability is a big one. You may need a workers compensation policy as well, depending on how the agency is set up.

Your best option is to find a trusted insurer and have them help you through your particular situation. There are a lot of questions left unanswered as far as exactly how you're looking to run the business. Either use the agent you already have, or ask family and friends for referrals. You're going to want to find a very active and experienced agent who's willing to do a little bit of work to help protect you.

Good luck!

Answer 3

If you are providing nanny services in the client’s home, then you should generally not have a requirement for insurance. This is because you are basically considered a domestic employee of the family hiring you. You can still get a professional liability policy if you so choose.

If you are providing the service in your own home, then you are self employed and basically running a child care service from your home. You will need a general liability Insurance policy. Most states have passed legislation requiring such insurance along with licensing for child care services.

Good luck

Answer 4

It's lawsuit insurance.

If you're working with kids, some parent is going to try to sue you because the kid got chicken pox.

Answer 5

To protect you if you get sued.  You can't "sign away" your liability.  You can't "opt out" of laws.   If you have them sign something, all a judge has to do is rule it "against public interest", and it's as if they never signed it.

You only need liability insurance, if someone sues you.  Of course, if they do, it's then too late to buy it.