Nanny Insurance: What Parents and Nannies Need to Know

Nanny insurance isn’t the most glamorous topic, but it’s one of those things that really matters the moment something goes wrong. Whether you’re a parent employing a nanny or a nanny working with families, having the right cover in place protects everyone involved.

At Nanny Matters we don’t sell insurance ourselves, we handle payroll for parents employing nannies, but we get asked about it all the time. So here’s a straightforward guide to what nanny insurance actually is, who pays for what, and where to look if you need a policy.

What Is Nanny Insurance?

Nanny insurance is a broad term that covers a few different types of policy. The two main ones you’ll hear about are public liability insurance and employer’s liability insurance.

Public liability covers the nanny if something goes wrong during work, for example if a child is injured in her care or she accidentally damages the family’s property. Employer’s liability covers the parents, as the employer, if the nanny is injured while working for them.

They do different jobs, and between them they cover most of what can go wrong in a nanny arrangement.

What Parents Need to Know

If you employ a nanny, you’re legally required to have employer’s liability insurance. This is a UK law that applies to anyone who employs someone, whether that’s a business with hundreds of staff or a family with one nanny.

The good news is that a lot of home contents insurance policies already include employer’s liability cover as standard. It’s worth phoning your home insurance provider and asking. If it’s already included, you might not need to pay anything extra. If it isn’t, you can usually add it on or take out a separate policy.

Either way, it’s something to sort before your nanny starts. Not having employer’s liability insurance can result in a fine, and it leaves you exposed if your nanny is injured on the job.

What Nannies Need to Know

Nannies usually arrange their own public liability insurance. It isn’t a legal requirement in the same way employer’s liability is for parents, but most professional nannies take it out anyway. It protects you if a child is injured while in your care, or if you damage the family’s home or belongings.

If you’re registered with Ofsted on the Voluntary Register, public liability cover is required as part of your registration. And if you want to work for agencies or high end families, having your own policy shows you’re a serious professional.

Policies are usually affordable, often in the region of £60 to £100 a year depending on the cover level. A good policy will include millions of pounds of public liability cover plus some personal accident cover for you, in case you’re injured while working.

Where to Get Nanny Insurance

There are a few well known specialist providers in the UK that focus on childcare insurance. These include Morton Michel, and Everywhen (formerly Towergate). Childcare.co.uk also offers cover as part of their gold membership for nannies registered on their platform.

Each provider has slightly different features, policy limits, and extras like legal expenses cover or business equipment cover. It’s worth comparing two or three before you commit, and always read the policy wording so you know what’s actually included.

For parents looking at employer’s liability, start with your home contents insurer first before paying for a separate policy. If you do need a standalone policy, the same specialist providers above often offer it.

Who Pays for the Nanny’s Insurance?

Traditionally, the nanny pays for her own public liability insurance because it’s her professional cover. It follows her from job to job, much like a tradesperson’s tools.

That said, some families choose to pay for it as part of the overall package, especially if the nanny is long term and they want to keep her happy. It’s a small cost and it can be a nice gesture. Either way, this is something to agree at the start so there’s no confusion later.

A Quick Word on Car Insurance

If your nanny drives the children around, car insurance is its own topic worth flagging. If she’s using your family car, she needs to be added to your policy as a named driver and the insurer needs to know she’s using it for work. If she’s using her own car, her insurance must include business use, not just social and commuting.

It’s an easy one to overlook and it catches people out. A quick call to the insurer sorts it.

Final Thoughts

Nanny insurance isn’t complicated once you break it down. Parents need employer’s liability (often already included in home insurance) and nannies need their own public liability cover. Together, these keep everyone protected if something unexpected happens.

At Nanny Matters we look after the payroll side of employing a nanny, making sure tax and National Insurance are handled properly each month. We don’t sell insurance, but if you’re sorting out the rest of the employer admin for your nanny and want a hand with payroll, we’re happy to help. Get in touch and we’ll talk you through it.