Happy Little Girl

Insurance Considerations When Hiring a Babysitter

If you’re looking to hire a babysitter, the question may arise as to whether or not you need to invest in liability insurance. Insurance for a babysitter is a confusing subject because it’s typically an hourly gig, and unless the sitter works for a daycare organization, they’re considered self-employed. This leads to differing views on the topic. So, let’s review some considerations for parents who need a night off from the kids.

Insurance for a Babysitter

If you think securing insurance for a babysitter might be a good idea, you’re not wrong. But it also depends on the number of hours you’re away. Most sitters only work occasionally, not to mention they’re usually adolescents or young adults who later move on to other jobs.

It Depends on the Situation

On the other hand, a childcare center always needs liability insurance because they’re an established business that probably pays multiple employees. It’s unlikely that employees who are contracted through this type of service would need to worry about individual insurance.

A full-time nanny is a different situation. This job is their main source of income. Therefore, insurance is a beneficial “cushion,” should any issues ever arise. In this case, the child’s guardian is an employer, rather than a source of supplemental income. Obviously, there are variations to this scenario, but it’s safer to assume that a nanny is not an independent contractor.

In Case of Emergency

There’s always a risk when working with children, and a babysitter faces the possibility of being sued for any accidents. Most of the time the family’s insurance covers this, but in extreme cases, babysitters have been required to pay the cost themselves. For instance, automotive insurance would be needed for a wreck that occurred while the child was under the care of a sitter.

Other Considerations

When it comes to taxes, a babysitter does need to pay taxes if they work enough hours. The average minimum wage for taxes is less than five hundred dollars; anything below that does not need to be claimed. The need for a business license may vary, however, depending on the situation.

We hope you found this article helpful. If you have questions or concerns about insurance for a babysitter, we’ve got answers. Please contact our office at (925) 447- 1744, or email mike@mcganninsurance.com.