Behind many well-run estates is a trusted team: house managers, nannies, private chefs, housekeepers, drivers, gardeners, and security personnel. These individuals often become an extension of the family. They also create employment relationships, and with them, insurance responsibilities that many families do not fully consider until a claim arises.
Are They Employees or Contractors?
The first question is whether your household workers are employees or independent contractors. In general, if you control when, where, and how the work is done, the worker is likely an employee for tax and insurance purposes, even if they are paid through an agency or a payroll service. Getting this wrong can create tax exposure and leave injuries or claims uninsured. We recommend reviewing worker classification with your accountant or household payroll provider.
Workers’ Compensation for Domestic Employees
Household work carries real injury risk: lifting, slips on wet floors, kitchen burns, ladder work, and driving. In Florida, workers’ compensation requirements for domestic employees differ from those for most businesses, and many families are not legally required to carry it. That does not mean they are protected. Without workers’ compensation, an injured employee may pursue the family directly, and some homeowners policies provide only limited coverage for domestic employee injuries.
A workers’ compensation policy for household staff pays medical bills and lost wages for injured employees and generally limits the family’s liability. For families with full-time staff, we strongly recommend it, regardless of whether it is legally required.
Employment Practices Liability
Claims of wrongful termination, discrimination, harassment, and wage disputes are increasingly common, including in household settings. Standard homeowners and umbrella policies typically exclude these claims. Domestic employment practices liability insurance, often available as an endorsement to a high-net-worth home policy, covers defense costs and settlements. Many private client carriers also offer access to employment law guidance before a dispute escalates.
Staff Who Drive Family Vehicles
Drivers, nannies, and house managers frequently use family vehicles to run errands or transport children. Make sure every regular driver is disclosed to your auto carrier, and confirm how your policy responds if staff use their own vehicles for household business. Strong auto liability limits and an umbrella that includes non-owned vehicles provide important protection.
Theft and Dishonesty
Staff often have access to keys, alarm codes, jewelry, art, and financial information. Fidelity or employee dishonesty coverage, sometimes available on high-net-worth policies, can protect against theft by household employees. Background checks, clear access protocols, and a current inventory of valuables are equally important.
Best Practices for Families
- Use a household payroll provider to manage taxes, withholding, and documentation.
- Put written employment agreements in place that describe duties, hours, and expectations.
- Conduct background checks and verify driving records for staff who drive.
- Establish clear protocols for access to the home, accounts, and valuables, and update them when staff change.
- Train staff on safety, emergency procedures, and your hurricane plan.
- Recognize that staff are often the target of cyber and social engineering schemes, and include them in your security habits.
Agencies, Payroll Companies, and Who Is Responsible
Many families hire staff through placement agencies or pay them through household payroll services. These arrangements are helpful, but they do not always transfer insurance responsibility. A placement agency typically does not employ the worker after placement, and a payroll provider handles taxes rather than liability. Confirm in writing who is considered the employer and what insurance each party carries. If staff are employed through a family office or business entity, that entity’s commercial insurance may need to address them as well.
Staff Who Travel With the Family
Nannies, assistants, and security personnel often travel with families between residences and abroad. Workers’ compensation and employment practices coverage should be reviewed for multiple states and international travel, since benefits and legal requirements vary. Make sure staff who travel are covered when driving rental cars, staying in second homes, or working outside the state where they are primarily employed.
Privacy and Confidentiality
Household employees often know a great deal about a family’s routines, travel, finances, and guests. Many families ask staff to sign confidentiality agreements, and some ask that staff refrain from posting about their work on social media. These agreements should be fair, clearly written, and reviewed by an employment attorney. Good practices around privacy protect both the family and the employee, and they reduce the likelihood that personal information is misused or shared in ways that create security or reputational risks.
Caring for the People Who Care for Your Family
Protecting your household staff is also a way of honoring their role in your family’s life. At Eton Bridge, we help families coordinate workers’ compensation, employment practices liability, auto, and umbrella coverage so the people who make your home run are protected, and so is your family. To discuss your household’s needs, request a private review.
