Umbrella Insurance When You Employ a Nanny or Household Staff

Employing a nanny, housekeeper, or other household help is common in high-income households — and it quietly adds a category of liability most people never consider: employment-related exposure. Here's what to know and how umbrella coverage fits.

The exposures household employment creates

• Workplace injury. A household employee injured on the job can result in a claim — and many homeowners don't realize they may need workers' compensation depending on hours and state rules.
• Employment-related claims. Disputes over wrongful termination, discrimination, or similar are a category standard policies don't address.
• General liability. A staff member's actions, or an injury they cause, can create third-party claims.

How coverage should respond

1. Workers' compensation / household employee coverage where required — check your state's rules for domestic employees.
2. An umbrella sized to your net worth for the added general liability exposure. See the coverage gap calculator.
3. Consider employment practices liability (EPLI) endorsements, which some high-value carriers offer for household staff disputes.
4. Proper home liability limits beneath the umbrella.

Why high-value carriers help here

Private client insurers are more likely to offer the specific endorsements household employers need — another reason this group often fits better with a high-value carrier than a standard policy.

Frequently asked questions

Do I need special insurance if I employ a nanny or housekeeper? Possibly — depending on hours and your state, you may need workers' compensation for a household employee, plus adequate liability coverage and an umbrella for the added exposure.

Does my umbrella cover household-staff claims? It can extend to general liability involving staff, but employment-specific claims may need EPLI or specialized endorsements. Confirm with your broker.

What is EPLI for household employers? Employment practices liability coverage addresses disputes like wrongful termination or discrimination claims from household staff — available through some high-value carriers.

More in this series: Excess Liability vs Umbrella: The Difference · Dog Bites and Umbrella Insurance

Related: Coverage Gap Calculator → · The Equity-Wealthy Household’s Insurance Guide →

An umbrella only does its job when the layers beneath it hold up, so pair this with What Your ESPP Means for Your Insurance Plan and Vacation and Seasonal Home Insurance in Washington.

Trella Insurance is an independent brokerage in Bellevue, WA. Request a free review or try the coverage gap calculator.