Don't miss

Domestic Workers & Coverage Gaps

By on October 31, 2013

The U.S. Census Bureau estimates that there are 1.5 million domestic workers across the country. But a definitive count is nearly impossible since many of these workers are in the country illegally, and many collect income that goes unreported on taxes. Thus, this number may be on the low end. There are many insurance implications for homeowners in the hiring of domestic workers. So what are the chief homeowners coverage gaps associated with this exposure for the homeowner/employer?

Standard homeowners policies typically exclude bodily injury losses under the personal liability and medical payments sections to any persons eligible to receive any benefits voluntarily provided, or required to be provided, by an “insured” under the Workers Compensation Act. State workers compensation laws can vary on this requirement. In many states, domestic employees are not covered by the Act. However, in a number of states, employers of domestic employees are subject to the Act if they employ these workers for more than a specified number of hours per week or if the employee is paid more than a specified sum over a certain period of time. In two states — New Hampshire and New Jersey — not only are domestic employees covered under the Act, regardless of the pay or the number of hours worked, but all homeowners policies must provide workers compensation coverage for these workers.

Insurers and agents need to be aware of these laws for their clients who are apt to hire domestic workers. For example, assume John and Mary Wilson, residents of the wealthy suburb of Chevy Chase, Maryland, directly employ a domestic worker who works 8 hours every Monday at $12 per hour. The worker, who has no health insurance, suffers a serious head injury when she falls from a ladder she is using to clean the top shelf of a bookcase at the Wilsons’ home.

Assume further that the Wilsons have a homeowners policy but no workers compensation policy for this worker. Maryland law stipulates that domestic workers who earn less than $1,000 per quarter are excluded from the Act but the worker in this loss scenario earns about $1,200 per quarter. Thus, the Wilsons are required by law to procure workers compensation for this worker. The Wilsons’ homeowners policy, however, excludes bodily injury to domestic employees if the insured is required to procure workers compensation (which is the case in this example). As a result of this serious injury, the domestic worker’s husband files a lawsuit against the Wilsons. Unfortunately, the Wilsons are now looking at a huge coverage gap.

So the best advice is to be aware of the workers compensation laws concerning domestics in your state.

Article contributed by Chuck Hanson, Anchor Insurance Group

Image Courtesy of



    February 27, 2015 at 6:37 am

    According to Facebook founder Mark Zuckerberg, Facebook’s video chat service will allow two users to connect
    face-to-face. Students and professionalos carry
    these devices with them to stay constantly connected.
    * If the phone has features such as analog TV is very likely that a Chinese clone.

  2. Tawnya

    February 10, 2016 at 7:42 pm

    What’s up, every time i used to check webpage posts
    here early in the morning, because i like to learn more and more.

  3. Yormmy

    February 21, 2016 at 3:30 am

    nina казва:da popitam az sam na 16 gdonii i imam astegmatizam i poradi tova okoto mi mnogo se krivi ! Az iskam da si napravq operaciq no neznam kak e podobre kato na var6a 20 gdonii organizmat mi da se e razvil po hybavo ili sega i da li pre4i ne6to ?

  4. marian

    February 21, 2016 at 9:45 pm

    Great post. I was checking continuously this blog and I’m impressed! Extremely useful information specifically the last part 🙂 I care for such info a lot. I was looking for this certain info for a long time. Thank you and best of luck.

  5. christean

    March 2, 2016 at 7:32 pm

    Simply desire to say your article is as astonishing. The clarity in your post is simply great and i can assume you’re an expert on this subject. Well with your permission let me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please continue the rewarding work.

  6. lavinie

    March 31, 2016 at 8:36 pm

    Hello there, You’ve done an excellent job. Ill definitely digg it and personally suggest to my friends. I’m sure they’ll be benefited from this site.

  7. tawsha

    April 21, 2016 at 8:10 pm

    You actually make it seem so easy with your presentation but I find this topic to be actually something that I think I would never understand. It seems too complicated and extremely broad for me. I am looking forward for your next post, Ill try to get the hang of it!

  8. alfy

    May 11, 2016 at 11:48 pm

    Hi there, You’ve done a great job. Ill definitely digg it and personally recommend to my friends. I am sure they’ll be benefited from this website.

  9. Pingback: Removals Cheltenham

  10. caralie

    June 3, 2016 at 8:10 pm

    I like the valuable info you provide in your articles. I will bookmark your blog and check again here regularly. I am quite certain I will learn many new stuff right here! Best of luck for the next!

  11. Pingback: Escorts en iquique

  12. Pingback: Custom Ironman Mask Animation with your face

  13. Pingback: Najbolja bosanska rock muzika

Leave a Reply

Your email address will not be published.