Your Business to Insure Your Child’s Nanny? The Ins and Outs of Providing Coverage

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Once their children reach a certain age, many moms decide to make the move back to the working world. Whether for personal fulfillment or financial necessity, the decision does raise the issue of childcare while the parents are at work—especially if the child or children are not yet school-age. While some families might opt for daycare, others might elect to hire a nanny, depending on the specific needs of the family and child(ren).

For those who choose to hire a nanny, many things must be taken into consideration from his or her specific credentials to first aid and medical experience—even compensation requirements and stipulations are of interest. Often being full-time, long-term employees—that sometimes even live with the family and thus work round the clock—many nannies require, or at least expect the offer of, a competitive salary and benefits package from their potential employers. However, given the current economic climate, that just isn’t always the case.

Below are some pros and cons to providing medical coverage—either full or partial—to your child’s nanny. Read on to see what choice you should make.

Financial Burden

Obviously, the most obvious issue when it comes to providing your nanny with insurance is the associated cost that comes with it. Premiums and packages can get pretty pricey, so often times families will elect to provide just a small contribution toward healthcare or none at all. Additionally, some nannies specifically request to not receive any medical compensation, in hopes of earning more direct pay with each check.

While in the short-term this might seem to benefit everyone, in the event of an accident or emergency this can actually prove more costly than the alternative. However, if the arrangement is to be one that is more short-term, this option might work best for everyone involved, but it’s definitely best dealt with on a case-by-case situation.

Overall Health

If you know the prospective nanny will be a part of your lives for the foreseeable future, their all-around health should be something you take seriously. Studies have shown that people with regular, dependable health coverage are more likely to get regular checkups, vaccines and other preventative care to maintain their health.

Conversely, those that are uninsured are more likely to forego doctor visits and healthcare overall, which can lead to serious health conditions in the long-run. This can be problematic, especially when we are talking about the person expected to look after your child’s well-being.

I’m going to bet you don’t want someone who is constantly ill and possibly contagious looking after your child. Plus, what if they get so sick, or even hurt, they can’t do what you hired them to do? Here’s a story to consider.

This would be one of those instances where opting to not have insurance is likely more costly than not. But again, it’s a case by case situation. You just have to determine how proactive you want to be.

Legal Issues

A final consideration to make when deciding whether or not to provide insurance to your child’s caregiver is the issue of potential legal issues. If your nanny gets sick or hurt on the job and they AREN’T covered, there’s a chance they might retaliate with a lawsuit of some sort. This is especially true if the ailment is very severe, as medical expenses can be very high and people might get desperate trying to come up with the money to pay for them.

Whatever you decide it’s important to remember that at the end of the day it is still a business transaction, and should be treated as such. Contracts should be signed, agreements should be made and paperwork should exist that documents everything. This is both for your benefit and theirs. But, ultimately it is for your CHILD. After all, this is all for them correct?

Don’t let financial, legal or petty issues get in the way of getting them the best care possible.

Carol Wilson is a versatile guest blogger who primarily writes about global business trends and insurance. When she’s not writing for sites like, she enjoys reading about politics and fashion. If you have any questions or comments for Carol, please send them to [email protected].

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