Nanny Insurance UK: What Parents And Nannies Need To Know

Nanny insurance isn’t the most glamorous topic, but it 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 this all the time. Here’s a straightforward guide to what nanny insurance actually is, who needs what, what it costs, and where to look.

What Is Nanny Insurance?

Nanny insurance is a broad term covering two main types of policy: public liability insurance and employer’s liability insurance. They do different jobs, and between them cover most of what can go wrong in a nanny arrangement.

Public liability protects 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 protects the parents, as the employer, if the nanny is injured while working for them.

Do Parents Need Employer’s Liability Insurance For A Nanny?

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

A lot of home contents insurance policies already include employer’s liability cover as standard, so it’s worth phoning your provider and asking before you pay for anything extra. If it isn’t included, you can usually add it on or take out a separate policy.

Sort this before your nanny starts. Not having employer’s liability insurance in place can result in a fine, and it leaves you exposed if your nanny is injured on the job.

Do Nannies Need 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 that registration. If you want to work for agencies or higher-end families, having your own policy also signals that you’re a serious professional.

How Much Does Nanny Insurance Cost?

Public liability cover for nannies is usually affordable, often in the region of £60 to £100 a year depending on the level of cover. A good policy includes several million pounds of public liability cover plus some personal accident cover for the nanny herself, in case she’s injured while working.

For parents, employer’s liability is often already bundled into home contents insurance at no extra cost. If you do need a standalone policy, expect a modest annual premium, check with your existing insurer first before shopping separately.

Where To Get Nanny Insurance In The UK

There are a few well known specialist providers that focus on childcare insurance, including Morton Michel and Everywhen (formerly Towergate). Childcare.co.uk also offers cover as part of their gold membership for nannies registered on the 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 committing, and reading the policy wording so you know exactly what’s included.

For parents looking at employer’s liability, start with your home contents insurer before paying for a separate policy.

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.

That said, some families choose to pay for it as part of the overall package, especially for a long-term nanny they want to keep happy. It’s a small cost and can be a nice gesture either way. Agree this 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 worth flagging separately. 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.

Nanny Insurance: Quick Answers

Is nanny insurance a legal requirement?

Employer’s liability insurance is a legal requirement for parents employing a nanny. Public liability insurance for the nanny herself isn’t a legal requirement, but is standard practice and required for Ofsted Voluntary Register nannies.

How much does employers liability insurance cost for a nanny?

It’s often already included in home contents insurance at no extra cost. A standalone policy is typically a modest annual premium, check with your existing home insurer first.

Does nanny insurance cover car accidents?

Not directly. If your nanny drives, she needs to be added as a named driver on your car insurance (if using your car) or have business use cover on her own policy.

Who arranges nanny insurance, Nanny Matters or the family?

Nanny Matters handles payroll, tax and pensions, not insurance. Parents arrange employer’s liability (often via their home insurer) and nannies typically arrange their own public liability cover.

Looking To Hire A Nanny?

When you hire a nanny privately, you become their employer, which means managing payroll, tax, and pensions yourself. Nanny Matters handles all of this for you giving you peace of mind and saving you plenty of time. Register today and let us take care of the hard work.

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