Do I need workers comp insurance for a nanny?

It depends on the state and the work arrangement. Massachusetts requires coverage when a household employee works at least 16 hours per week; New York uses 40 hours for the same employer and covers live-in domestic workers regardless of hours; California uses hours-and-wages tests over a 90-day period. Other states exclude domestic workers, allow an election, or make private coverage optional. Classify the worker first, then apply the state rule where the work occurs.

Is a nanny an employee or an independent contractor?

A nanny hired directly by a family is usually a household employee when the family controls both what work is done and how it is done. The IRS says full-time versus part-time status and hourly versus job-based pay do not change that control test. A worker may instead be the agency's employee when the agency provides and controls the worker. A contract label by itself does not decide the relationship.

Does homeowners insurance cover a nanny's work injury?

Do not assume it does. New York's Workers' Compensation Board explicitly says a homeowners-policy workers' comp rider does not cover domestic or household workers. In every state, ask the insurer in writing whether the policy includes statutory workers' compensation for the nanny, what classification applies, and whether a separate policy or endorsement is required.

Do part-time nannies need workers comp insurance?

Part-time work can still cross a state trigger. Massachusetts starts at 16 hours per week, while California aggregates hours and wages over 90 days. Illinois aggregates all domestic-worker hours in the household and adds a 13-week duration test. Keep weekly hours and cumulative wages from the first shift rather than waiting until the schedule feels full-time.

Who carries workers comp when a nanny comes through an agency?

Start with who controls the worker. IRS Publication 926 says a worker provided and controlled by an agency is generally not the household's employee. Ask the agency for a current workers' comp certificate, verify the legal entity and policy dates, and make the contract state who employs and insures the worker. A referral list alone does not prove that the agency is the employer.

How much does workers comp insurance for a nanny cost?

There is no reliable national flat price. A carrier may rate the policy using the state, domestic-worker classification, payroll or another approved exposure basis, prior claims, and a minimum premium. Request a household-employer quote using the nanny's expected annual wages and duties. Do not treat a generic business-rate estimate as a binding insurance quote.

Workers' Comp Insurance for a Nanny: Seven State Rules Compared

Workers' comp insurance for a nanny is state-regulated coverage for a household employee's work injury; there is no single national hours rule. As of July 30, 2026, the official triggers in this comparison range from 16 hours per week in Massachusetts to 40 hours in New York, while California uses both 52 hours and more than $100 in wages over the relevant prior 90 days.

Last verified: July 30, 2026 · Reviewed against current tax, statute, workers' compensation agency, and state-fund guidance · how we verify

The two questions that decide the answer

First, decide who employs the nanny. The IRS's 2026 household employer guide says a worker is your household employee when you can control not only the result, but how the work is performed. The label in a contract, a part-time schedule, or payment by the day does not override that control test. If an agency supplies and controls the worker, the agency may be the employer instead.

Second, apply the workers' comp law where the nanny works. Federal household-employment tax thresholds do not replace a state workers' comp threshold. Use the seven-rule comparison below as a starting point, then confirm the facts with the state agency or a licensed agent before work starts.

Seven state rules for nanny workers' comp

These examples show why a generic yes-or-no answer fails. The thresholds measure different things: one worker's weekly schedule, the whole household's schedule, cumulative hours and wages, an affirmative election, or no mandatory private-market rule at all.

Jurisdiction	Official trigger	Household action
California	The household-worker exclusion applies if employment in the relevant prior 90-day period was for less than 52 hours OR for no more than $100 in wages. A worker clears that exclusion only when both thresholds are exceeded.	Track cumulative hours and wages from the first day. Ask a California workers' comp agent to confirm when the policy must begin; do not substitute the separate Cal/OSHA domestic-worker rules for this insurance test.
Massachusetts	A household employee who works at least 16 hours per week must be covered by workers' compensation insurance.	Buy through a business-insurance agent, broker, or direct writer. The state provides an assigned-risk application path after two licensed insurers reject the risk.
New York	Coverage is required at 40 or more hours per week for the same household employer. Required-presence time counts, and live-in domestic workers must be covered regardless of hours.	Use a New York-authorized carrier or NYSIF and confirm the domestic-worker classification. Do not assume a homeowners-policy workers' comp rider covers the nanny.
Illinois	The Act covers a household or residence when domestic workers are employed for a total of at least 40 hours per week for 13 or more weeks during a calendar year.	Add the hours of all domestic workers in the household. The test is household-wide, so splitting hours between two workers does not necessarily avoid the trigger.
Washington	Domestic servants in a private residence are excluded unless the household employs two or more full-time domestic servants, each regularly working at least 40 hours per week; then all domestic servants are covered.	A household with one nanny generally falls within the stated exclusion. Ask Washington L&I or an authorized agent about any elective or other coverage that fits the arrangement.
Pennsylvania	Domestic workers are excluded unless they elect with the Department of Labor and Industry to come under the Workers' Compensation Act.	Ask the insurance agent to request coverage for the domestic employee. The carrier supplies and files the election documentation; do not treat the exclusion as automatic injury protection.
Texas	Most private employers may choose whether to carry Texas workers' compensation insurance; this is the broad state rule rather than a nanny-specific hours threshold.	If the household chooses coverage, buy a Texas workers' comp policy from a licensed carrier. Going without coverage leaves the employer outside the workers' comp system and its liability protections.

This is a comparison of selected jurisdictions, not a 50-state legal opinion. Rules may also differ for a live-in worker, a family member, publicly funded care, or a worker employed by an agency.

Do not classify a regular nanny as a contractor by default

A family that sets the schedule, location, childcare duties, and day-to-day method usually has the kind of control the IRS describes for a household employee. Calling the nanny an independent contractor does not move the workers' comp risk to the worker if the real relationship is employment.

An agency arrangement needs its own proof. Ask who issues the W-2, who controls the work, and whose policy lists the domestic-worker exposure. Then obtain and verify the agency's workers' comp certificate of insurance. A referral marketplace or list of caregivers is not, by itself, evidence that the platform employs or insures the nanny.

How to buy and verify nanny workers' comp coverage

Write down the arrangement. Record who hires, directs, pays, and can dismiss the worker; the work location; live-in status; expected weekly hours; duties; start date; and annual wages.
Check the state trigger. Use the agency or statute for the work state. For the broader employer rules, open the workers' comp requirements by state guide.
Ask for the right policy. Tell the carrier or licensed agent that this is direct household employment and describe every duty. Ask whether the approved rating basis is payroll, per-capita, or another state-specific exposure.
Confirm who is insured. The certificate or declarations should identify the household employer, carrier, effective dates, and statutory workers' comp coverage. Ask how live-in work, driving, travel, or care outside the home is handled.
Recheck as hours change. Summer schedules, school breaks, a second domestic worker, or a move can cross a trigger. Keep weekly hours and wages so the decision is based on records rather than memory.

What the premium depends on

No official national price applies to a nanny policy. The carrier may use the state, approved domestic-worker classification, expected payroll or another approved exposure basis, prior claims, and a minimum premium. Driving children, household cleaning, or mixed caregiving duties can also change how the risk is described to the underwriter.

Gather the expected annual wages before asking for quotes. Our workers' comp cost calculator explains the standard payroll-rate formula, but it is not a household-employer quote and should not replace a carrier's filed classification and minimum premium.

Frequently Asked Questions

Primary sources

Retrieved 2026-07-30. We use the operative state agency, statute, or official guide for each rule rather than a nationwide insurance summary.

IRS Publication 926 (2026) — Household Employer's Tax GuideThe control test for a household employee, a nanny example, and the distinction between a family-hired worker and a worker controlled by an agency.
California Legislature — Labor Code §3352The 90-day household-employment exclusion for less than 52 hours or no more than $100 in wages.
Massachusetts — Tax Guide for Household EmployersExamples of household employees, the 16-hour weekly workers' comp trigger, and ways to obtain a policy.
New York Workers' Compensation Board — Is Coverage Required?The 40-hour rule, required-presence time, live-in treatment, and the warning about homeowners-policy riders.
Illinois Workers' Compensation Commission — Workers' Compensation ActSection 3's household trigger: 40 total domestic-worker hours per week for at least 13 weeks in a calendar year.
Washington L&I — Workers' Compensation Recordkeeping and Reporting GuideThe private-residence exclusion and the two-full-time-domestic-servant threshold.
Pennsylvania DLI — Workers' Compensation ComplianceThe domestic-worker exclusion and the carrier-filed election route for including a domestic employee.
Texas Department of Insurance — Coverage VerificationThe current rule that most private employers may choose whether to carry Texas workers' comp coverage.