Have a nanny or a maid? Here’s how to keep one simple accident from bankrupting you.

By Elisabeth Leamy  September 26

Let’s say you live in the District and your nanny drives your kids to school. One day, while driving them, she runs a red light and is badly injured. Even though she caused the accident, she can bring a workers’ compensation claim against you to cover her medical bills and lost income.

“It’s important to understand that under work comp laws, you are liable for injuries to your employees, regardless of whether or not you were at fault in any way,” said Willy Hoffman Jr. of Howard and Hoffman General Insurance Agents in Northwest Washington . “Like most states, D.C. law requires you to pay 100 percent of your employee’s medical bills as well as lost income for the rest of their life.”
It’s not just nannies. Many states require people to buy workers’ compensation insurance for all their domestic employees. “Some states have a dollar threshold as to when a domestic employee must be protected by workers’ compensation,” said Bob Rusbuldt, president and chief executive of the Independent Insurance Agents and Brokers of America. “Some have a number threshold — for example, workers’ compensation is not required until there are 10 domestic employees.”