Homeowners/renters insurance that includes workers comp?

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PostPosted: Tue Aug 27, 2013 4:31 am   Post subject: Homeowners/renters insurance that includes workers comp?  

Could anyone tell me about an insurance company that would allow me to purchase workers compensation insurance for household employees (nurse/main etc) as a rider to homeowners or renters insurance or general liability insurance? I've already reached out many carriers but didn't come across one who provides this.


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PostPosted: Tue Aug 27, 2013 12:39 pm   Post subject:   

Homeowners insurance generally affords coverage for "casual" domestic employees -- the ones who are not there on a permanent basis (like a gardener or a housekeeper who only come once a week). If you have a live-in housekeeper, for example, or one who arrives for work at a regular time every day most days of the week and works a preset schedule, you would need to purchase a standard workers' compensation policy to provide the legally required coverage.



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I've already reached out many carriers but didn't come across one who provides this.
That's correct. Homeowners policies have a standard provision that provides WC for casual employees as I explained above. They do not offer broader WC riders.



Any insurance agent who writes commercial WC insurance for businesses can obtain a WC policy for you according to your needs. A single housekeeper who works 20-40 hours per week and earns minimum wage (or not much more) will probably result in an annual premium of about $500-$600 (it's a high risk occupational class, and some companies also have a minimum annual premium), generally payable in advance and subject to "audit" (a review of your payroll, since the total premium is based on reported payroll).



As your employee, you also have to pay FUTA and withhold and pay Social Security and Medicare contributions. Are you doing this?



There is an alternative. Hire your domestic help through an agency that provides the required insurance for its employees and handles the tax issues. You will pay more than if you were hiring an employee on your own, but you will not have the liability for taxes and insurance and possibly save money overall (many agencies offer employees access to health insurance and retirement plans -- something you are not likely to offer). Just be sure to get copies of the agency's WC and General Liability insurance certificates, and verify coverage. You may ask to be notified if coverage is terminated or lapsed.


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