Domestic Workers’ Insurance

Domestic workers insurance is intended to cover any person hired to perform paid tasks at a private residence. This could include a person such as a nanny, handyperson or a cleaner. In Australia, though we often rely on family members for childcare and so forth, in upwardly mobile families or amongst the hard-working time poor there is an increasing need for home assistance. Many households (and small businesses) employ cleaners; some parents have a nanny or shared-care arrangement in place for childcare; larger homes tend to need the expert assistance of a part-time gardener. Domestic workers’ insurance will cover you if your hired help has an accident while on the premises.
                                                   
That said, most people who work as self-employed tradespeople have their own insurance, and it’s important to be aware that domestic workers’ insurance does not cover strata title properties, home businesses, sole traders or partnerships.

According to WorkCover NSW, an annual policy to cover a private person hiring a non-insured person is just $38. This is a trifling sum to cover yourself against a potentially expensive claim for injury or personal damage. Naturally, this cost varies from insurer to insurer. However, given the tremendous affordability of this type of policy it is surprising it is not more widely taken up.

Finding a policy

This is not a widely supplied type of insurance, being a very boutique product. However, major insurance companies such as CGU, Allianz, QBE and GIO offer domestic workers’ insurance. There are also Councils such as Bankstown and the City of Wollongong, groups such as Vero and Elders, and organizations that provide self insurance such as BOC Gases. Do note, however, that self-insurers don’t pay workers compensation premiums to insurers – it’s more a self-managed situation where they control the whole process. According to CommInsure, Domestic Workers Compensation is available as part of a home contents insurance package in NSW, WA, the ACT and Tasmania and can not be bought separately. That means you’ll have to check with your insurer to find out whether you need a separate or revamped policy if you intend to hire domestic help, especially for an extended timeframe. Even so, not all states offer this type of insurance for a private party so if you’re looking to hire staff to assist around the home find out first if that person has their own insurance.

Should I bother?

As with other forms of insurance, domestic workers’ insurance is there as a safety measure to ensure, in the event of something going wrong, you’re not left financially compromised by a huge, possibly upfront, out of pocket expense or litigious claim. Unless you’re a person with a bank account big enough to cover any possible misfortune experienced by one of your workers, if you’re looking at domestic help on a regular basis, the forty-odd dollars a year is a small investment that certainly has the potential to save you a lot of personal concern.