Don’t Sweat Worker's Comp Insurance, You Might Already Have it.

Worker’s Compensation Insurance

If you have a household employee, then you are required by law in many states to provide worker's compensation insurance. Sounds like a big deal and hassle, but it's really not. In fact, you may already be covered by your renter's or homeowners's insurance. Just call and find out what coverage you might already have.

In California, a household worker is covered by workers’ compensation only if he or she works at least 52 hours or earns at least $100 in the 90 days before the date of injury. 

The workers' compensation system is based on a trade-off between employers and employees. Employees are entitled to receive prompt, effective medical treatment for on-the-job injuries or illnesses no matter who is at fault and, in return, are prevented from suing employers over those injuries. Workers' comp insurance provides basic benefits, including medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and a return-to-work supplement, and death benefits.

In some states, if the policyholder is required to provide workers’ compensation (as it is in California), then the homeowner's Personal Liability coverage could be excluded—whether the policyholder bought the workers’ compensation policy or not. Bottom line: Call your insurance company and find out your specific coverage needs.