What Insurance Does a Nanny Need? A Guide for Parents

Employing a nanny is a practical and personal decision, and it comes with mostly clear responsibilities for parents. Alongside agreeing pay, working hours and day-to-day duties, insurance is one of the areas that often raises questions. Many families want to know what insurance a nanny needs, and who is responsible for putting the right cover in place.

This guide from Home Counties nanny agency Nannies Matter explains the different types of nanny insurance, what is legally required when you employ a nanny and how the right cover protects your children, your property and the nanny themselves. We also explain how a nanny agency manages these arrangements on your behalf, putting the right protections in place from the start.
 

What insurance does a nanny need?

The insurance required depends on how the nanny is employed and the nature of their role. In most cases, a nanny is an employee working in your home rather than a self-employed business. This distinction matters, as it determines which insurance policies are legally required and which are considered sensible additional protection.

At a minimum, families employing a nanny as an employee must have employers’ liability insurance in place. Other types of cover, such as public liability insurance or personal accident cover, may also be appropriate depending on circumstances, travel plans and the specific risks involved in the role.

Employers’ liability insurance - what parents are legally responsible for

Employers’ liability insurance for a nanny is a legal requirement in the UK when you employ someone to work in your home. This applies even if the nanny works part-time or only a few days a week. If your nanny is classed as an employee, you are legally required to hold a valid employers’ liability insurance policy.

Employers’ liability insurance protects you if your nanny is injured or becomes ill as a result of their job and makes a claim for compensation. It can cover medical costs, loss of earnings, legal fees and other associated legal costs. Without this cover, employers may be held liable personally, and failure to have the right insurance can result in penalties.

For families, this insurance provides protection if an accident does happen, whether that involves a slip on the stairs, a lifting injury or an illness linked to employment. It is a crucial safeguard for both employer and employee.

Public liability insurance

While employers’ liability protects the nanny as an employee, public liability insurance provides cover if a third party is injured or their property is damaged as a result of the nanny’s actions.

Public liability insurance is not always legally required because, in many nanny roles, the risk of third-party claims already sits within other arrangements. For example, incidents that occur within the family home may be covered by household insurance, and where a nanny is employed solely by one family, employers’ liability insurance remains the primary legal requirement. This is why public liability insurance is not automatically mandatory in every nanny arrangement.

That said, public liability cover becomes more relevant where a nanny regularly takes children outside the home, attends extracurricular activities or is responsible for children in public spaces. In these situations, claims may arise that fall outside the scope of household insurance. For this reason, some professional nannies hold their own public liability insurance, particularly where they work across multiple families, undertake additional duties or operate with a higher degree of independence.

While not legally required in the same way as employers’ liability insurance, public liability insurance is often considered a sensible additional layer of protection, depending on how and where the nanny carries out their duties.

If a nanny is self-employed, how does that affect insurance?

In most private childcare arrangements, a nanny is employed directly by the family, even where hours are flexible or the role evolves over time. In a smaller number of cases, a nanny may genuinely work on a self-employed basis. Where this applies, responsibility for arranging appropriate insurance usually sits with the nanny rather than the parents.

A self-employed nanny will typically hold their own insurance, such as public liability insurance and any business insurance linked to the way they work. This cover is intended to protect them if a claim arises while they are providing childcare services.

Where families sometimes need clarification is around how employment status is defined. In the UK, this is based on how the role operates in practice, including who sets working hours, duties and pay, and how the nanny works within the family home.

If a nanny is treated as an employee, certain obligations follow, including employers’ liability insurance. This is why confirming employment status early on is helpful, as it allows the right insurance arrangements to be put in place from the outset.

At Nannies Matter, we guide families through this as part of the placement process, so that roles are set up clearly and correctly and parents can focus on welcoming the right nanny into their home without having to worry.

Additional insurance to consider

Beyond legally required cover, some families choose to put additional insurance policies in place depending on their circumstances. Personal accident cover can provide financial support if a nanny is injured and unable to work for a period of time. This can be particularly reassuring in long-term or live-in nanny arrangements.

If your nanny travels with you for holidays or trips abroad, insurance should be reviewed to confirm coverage each time, including for medical treatment and liability outside the UK. Some policies also extend to business equipment, theft or loss of items used as part of the nanny’s role.

How Nannies Matter supports families to get the right insurance

At Nannies Matter, we have supported families for over 20 years, working closely with parents and professional nannies across Surrey, Berkshire, Buckinghamshire and the surrounding areas. Our dedicated team understands the responsibilities involved in employing a nanny and the legal requirements and good practices that support a clear, well-run arrangement for everyone involved.

When we source and place a live-out or live-in nanny for you, we can consult with you on all the things you need in place, including insurance cover and payroll, so you can focus on welcoming a nanny into your home and getting the professional relationship off to a great start.

If you would like to support understanding insurance for nannies or guidance on employing a nanny in the home counties correctly, get in touch with Nannies Matter and we will be delighted to help.