Employer's liability insurance when employing a nanny-where did you get it?

[sleepatlast]

I've read that we need to take out employer's liability insurance as we have a nanny starting soon. Google brings up lots of searches but it doesn't seem to apply to employers of nannies...can anyone out there recommend a good company that provide relevant insurance? My home contents insurance people do not provide it (already asked them).

Thanks in advance!

Most home insurance companies provide it.

Make sure that your's really don't. The first time I phoned mine up they told me they didn't. I decided to change insurers and when I phoned up to cancel it turned out that they actually did cover it (nannies and any other people like cleaners that may work in your home).

Have heard very good things about John Lewis providing this type of cover!

Are you with the Co-op? They are the only insurance provider whom we have heard about on here before who don't provide it and won't add it.

If you are with another provider, do read your policy wording carefully. It is usually in there somewhere. If you can't find it, then you may need to cancel the policy and take one out with someone else.

JohnLewis says:

you are covered for occupiers', personal and employers' liability up to £5 million for amounts which you or your family legally have to pay as damages in relation to: accidental bodily injury to any person
accidental loss of or damage to material property
accidental obstruction, trespass or nuisance resulting in interference with or loss of enjoyment of material property.

So if you are stuck for an insurer, contact JL as they will do it.

Certainly do call your insurer and tell them that you would like to cancel your policy as they don't provide employers liability cover for a domestic employee. See what they say - they may suddenly realise that they do actually cover that up to say £5 million, which is perfectly fine for you.

If your insurer won't provide it and you don't want to change insurance provider, then perhaps ask Hiscox or DirectLineBusiness and see what they say. You are an employer but you are not really a business, so I don't know if they would or would not provide you with a policy.

I'm with rbs. I will try them again! The lady on the phone was v confused! Jl might be getting some business. Any other recommendations?

RBS: Standard Home Policy Wording
RBS: Elite Home Policy Wording

From the standard policy:

2 Employers Liability
We will pay all amounts which You become legally liable to pay for accidental death of or bodily injury to Your domestic staff during the Period of Insurance shown in the schedule.
For any claim arising from one incident We will not pay more than £10,000,000. We will also pay costs, expenses and legal fees We have agreed to in writing.

From the Elite policy:
2 Employers Liability
We will pay all amounts which You become legally liable to pay for accidental death of or bodily injury to Your domestic staff during the Period of Insurance shown in the schedule.
For any claim arising from one incident, We will not pay more than £10,000,000. We will also pay costs, expenses and legal fees We have agreed to in writing.

So looks like if you have either of those policies then you are fine up to a max claim of £10million.

Oh dear, I think a can of worms has just been opened.

The Employers' Liability (Compulsory Insurance) Act 1969 requires insurance against 'liability for bodily injury or disease' - a large number of EL claims are in fact for illness (asbestosis, respiratory disease etc.) although this is less relevant for a domestic employer.

I have just checked the terms of a few policies on line and they all say 'death or injury' so they do not appear to provide the minimum level of insurance required by the 1969 Act.

HOWEVER, that Act also limits the requirement to insure to 'every employer carrying on any business in Great Britain' - and domestic employers are not in general carrying on any business. In a quick search of relevant manuals I cannot find any authoritative requirement which would apply to a nanny - and I don't count an HSE leaflet as authoritative.

Can anyone shed any light?

Thankyou guys! I shall watch with interest if anyone else knows where I stand on this.no asbestos or birds etc to give my nanny lung disease but I guess back problems might count and that's a possibility puffing a double buggy around!

Can't shed any light but interesting, particularly as a nanny could catch a benign (in childhood) disease from a charge with serious consequences e.g. pregnant nannies and rubella or chickenpox.

Just got home and re read policy "covered for employers responsibilities to 10 million" why did I trust rbs lady on phone when she said "nah we don't do that"! Thanks nannynick...slightly embarrassed that you read my policy wording better than I did!

back problems might count

That would be an injury

pregnant nannies and rubella

... but that is exactly an example of an illness where the negligence of an employer could lead to the illness of a nanny with dire consequences - I was having difficulty coming up with one.

Luckily my nanny is not of childbearing age but I will check her immunisation and chicken pox status if she knows it.she's been a nanny for v long time so expect she's been exposed to most bugs.interesting though re pregnant nannies and illnesses. Mr anchovy...you were right about the can of worms!

So are all/most insurers not actually complying with the 1969 Act? Maybe that's something to raise with the Association of British Insurers.

No Nick, there is nothing to stop an insurer offering whatever cover they want, the obligation is on the employer to ensure that their cover is sufficient (if they are included within the legislation).

My mum had asbestos in her house, didn't know until there was a water leak which went through the ceiling. So there could well be homes out there where there is hidden asbestos.

Risk of getting ill is probably low, as is the risk of getting rubella (NHS website mentions 4 cases in 2005).

Maybe the risks are considered to be so low that it is no longer a requirement to have insurance cover for those sorts of things.

What about Legionnaires' disease, is that possible to be something someone could get whilst working at a private home? HSE website mentions whirlpool spas.

It certainly is still a requirement Nick, that is unlikely ever to change.

But in English Law, the terms 'personal injury' and 'bodily injury' generally include illness, so a policy need not explicitly state 'injury or illness'.

That still leaves the second half of the problem - does the 1969 Act apply to nanny employers at all?

Regardless of the legal requirement, it is of course highly advisable for every employer to have insurance covering their liability to employees, both to provide for the employee in a tragic situation, and to protect the employer from having to pay out compensation from her personal assets.

nick the risk is unimaginably high.

Risk = likelihood x severity of consequence

The likelihood may be negligible (4 clinical cases) but the consequences could be devastating.

That's just one extreme example but nannies do get infected by their charges and it's impossible to guarantee that it will be mild. Which is presumably why the requirement to have insurance exists....

I think I will write to rbs and get them to clarify whether I am covered for the exact wording of the law as the policy is confusing.thankyou for your help Nick & anchovy !