Insurance for Nanny Employers

When you hire a nanny, you are legally required to get Employer's Liability (EL) Insurance. This is a non-negotiable. It covers you for at least £5 million if your nanny is injured or becomes ill as a result of working for you. Your standard home insurance will not include this, so you must check if it can be added.

When you find the perfect nanny, it’s a huge relief. You're focused on contracts, start dates, and how to best settle them in with your children. But there's one crucial, legally-required step that many first-time employers miss: insurance.

This isn't just a "nice to have." It's a legal must-have, and failing to sort it out can result in massive fines. Here’s what you need to know.

The Legal Must-Have: Employer's Liability Insurance

The moment you become an employer, you are required by law to have Employer's Liability (EL) Insurance.

What is it?

This insurance helps you pay compensation if your nanny gets injured or becomes ill because of their work for you. This could be anything from a serious fall on a wet floor to a long-term back injury from lifting.

It covers the compensation claim and the legal fees.

Is it really a legal requirement?

Yes. The Employers' Liability (Compulsory Insurance) Act 1969 makes it clear. You must be covered for at least £5 million.

The penalties for not having it are severe: you can be fined £2,500 for every single day you are not properly insured. You can also be fined £1,000 for not displaying the certificate (or having it available for inspection).

This is a risk you simply cannot afford to take.

Does My Home Insurance Already Cover This?

Almost certainly not.

Do not assume your standard home and contents insurance covers you. It's designed to protect your building and possessions; it is not designed to cover employees.

The good news is that most home insurance providers offer EL insurance as a simple "add-on" or "domestic helper" extension.

Your Action:

• Call your home insurance provider before your nanny's first day.
• Ask them: "I am about to employ a nanny. Do I have Employer's Liability Insurance for domestic employees?"
• If not, ask for it to be added immediately and for them to send you the Certificate of Employer's Liability Insurance as proof.

What's the Difference Between My Insurance and My Nanny's?

You may hear about two types of insurance, and it's vital to know the difference.

• Employer's Liability (Your responsibility): This covers claims made by your employee (your nanny) against you. This is the one that is legally required for you.
• Public Liability (Often your nanny's): This covers claims made by a member of the public against the nanny. For example, if your nanny is at the park and accidentally causes an injury to another child, their Public Liability insurance would cover it.

Nannies who are Ofsted-registered are required to have their own Public Liability insurance. This is a great sign of professionalism, but it does not replace your legal duty to have your own Employer's Liability insurance.

Your Simple Insurance Checklist

1. Find your nanny.
2. Agree on a gross salary.
3. Call your home insurance provider.
4. Add Employer's Liability Insurance to your policy.
5. Get a copy of the certificate and store it safely.
6. Sign the employment contract.

Getting this sorted is just as important as setting up their payroll and pension. It’s a core part of being a fair, compliant, and protected employer.

We can handle the rest

While we can't sort your insurance, our payroll service takes care of everything else for you: From registrations and filings to payslips and payments. We handle the complex employer admin so you don't have to.

Fully digital, no paperwork, no stress.