Do You Need Insurance to Hire a Private Caregiver?

If you're hiring a private caregiver, you've probably wondered what your insurance actually covers.

What happens if your caregiver is injured in your home? Are you on the hook for medical bills or lost wages?

Most people assume their homeowners policy handles it. Most of the time, it doesn't.

In this guide, we'll walk through what insurance you need when hiring a private caregiver, what coverage is already in place, and where gaps tend to show up.

Key takeaways

• Most homeowners insurance policies don't cover household employees, leaving you responsible for medical bills and lost wages if your caregiver is injured on the job
• If you hire directly as a household employee, workers' compensation is typically your responsibility to set up, and requirements vary by state
• Platforms like Herewith include professional liability insurance with every booking, which takes one piece of the puzzle off your plate

Do you need insurance to hire a private caregiver?

In many cases, yes.

If you hire a caregiver directly and they work in your home regularly, you may be responsible for certain types of insurance depending on your state and how the working relationship is set up.

The biggest gap tends to be homeowners insurance. Most policies don't cover household employees, so if your caregiver is injured during a shift, you could be left covering medical bills and lost wages out of pocket.

What insurance do families need when hiring a caregiver?

There are two types of coverage to understand: workers' compensation and liability insurance.

They cover different risks, and knowing how both work helps you make an informed decision before you hire.

Workers' compensation insurance

If a caregiver is injured while working in your home, workers' compensation covers their medical bills and a portion of their lost wages.

In many states, this is a legal requirement if you hire a caregiver regularly and they are classified as a household employee (W-2). Rules vary by location and how often your caregiver works, so it's worth checking what applies in your state before your caregiver’s first shift.

Liability coverage

Liability coverage helps protect against claims related to the care being provided, such as accidental injury of your loved one during a care visit.

Liability insurance is usually carried by the caregiver, agency, or platform they work through, not the family doing the hiring.

That said, you'll want to confirm it's in place early on.

If a caregiver makes a mistake that leads to an injury, liability insurance may help cover legal costs or damages from that claim.

Who is responsible for insurance when you hire a caregiver?

Responsibility depends on how you choose to hire.

If you hire a caregiver directly

You're usually responsible for workers' compensation and any other employer-related requirements in your state.

That includes setting up coverage, handling payroll, and staying compliant with local laws.

Without the right coverage in place, you could be on the hook for costs if your caregiver is injured on the job.

If you hire through an agency

The agency typically handles insurance on your behalf. That usually includes liability coverage and workers' compensation, so you're not responsible for setting up those policies yourself.

Keep in mind that agency care tends to come at a higher cost than hiring privately, partly because those overhead expenses get passed on to you.

If you use an online booking platform like Herewith

Online booking platforms connect you directly with independent caregivers in your area, and coverage varies by platform.

On Herewith, professional liability insurance is included with every booking, covering claims tied to the care being provided.

Through Herewith, you can also set up workers' compensation as an add-on, depending on how often your caregiver works and your state’s requirements. Keep in mind, worker’s compensation is only available if you’re hiring a caregiver as a household employee (W-2) and is not available if you are hiring them as an independent contractor (1099).

It's worth checking how any platform you use handles coverage, so you know what's included and what you may still need to arrange on your own.

How to get insurance when hiring a private caregiver

If you're hiring directly, you'll need to set up workers' compensation and handle a few related steps.

The exact process depends on your state, but most families follow a similar path.

Set up workers' compensation coverage

Start by getting a workers' compensation policy through a licensed insurance provider in your state.

Many providers offer coverage specifically for household employers, and policies can often be set up online or through an agent. Coverage typically starts as soon as your policy is active.

Use a payroll or household employer service

Many families choose a payroll service that specializes in household employees.

These services can help you set up workers' compensation, handle payroll taxes and filings, and stay compliant with state requirements.

If you're hiring for ongoing care, this can save you a lot of time and help you avoid costly mistakes.

How much does insurance cost when hiring a private caregiver?

In most cases, you’ll pay a few hundred to around $1400 per year for workers compensation insurance for senior care, depending on your state, your caregiver’s wages, and how often they work.

Costs are based on wages, so if your caregiver works more hours or earns a higher rate, your premium will reflect that.

If you use a payroll or household employer service, there's typically an additional monthly fee. That said, it usually covers workers' compensation setup, tax filings, and compliance support, so it can be worth the cost if you're managing ongoing care.

The best way to get an accurate number is to request a quote based on your location and care schedule.

What your insurance doesn't cover

Insurance goes a long way, but it doesn't cover every situation that can come up when you hire a caregiver. Knowing where the gaps are helps you plan ahead.

Injuries without workers' compensation

Homeowners insurance usually doesn't cover injuries to someone working in your home. If your caregiver is injured during a shift and you don't have workers' compensation in place, you may be responsible for their medical bills and lost wages out of pocket.

Claims related to care

Liability coverage for caregiving is typically carried by the caregiver, agency, or booking platform, not the family. If that coverage isn't confirmed before your caregiver starts working, you may have limited financial protection if a claim arises.

Employment-related compliance issues

Insurance doesn't cover mistakes tied to payroll, taxes, or worker classification. If your caregiver is considered a household employee, you're responsible for getting those requirements right.

Errors can lead to penalties or back taxes regardless of what coverage you have in place.

How Herewith helps simplify caregiver insurance

If you're hiring a caregiver directly, setting up workers' compensation, managing payroll, and staying compliant can feel like a lot to take on, especially if this is your first time hiring in-home help.

Herewith simplifies several parts of the process.

Here's what's included when you book on Herewith:

• Professional liability insurance up to $1 million per claim, included with every booking
• ID verification and background checks through Checkr completed before any Helper can be hired
• Workers’ compensation setup for W-2 hires is available as an add-on through our partner, HomeWork Solutions

You still get the flexibility and control of hiring privately. You just don't have to piece everything together on your own.

Learn more about in-home senior care services on Herewith.

Frequently asked questions about hiring a private caregiver and insurance

Do I need workers' compensation to hire a private caregiver?

In many cases, yes. If you hire a caregiver directly as a household employee (W-2) and they work in your home regularly, you may be required to carry workers' compensation depending on your state.

Does homeowners insurance cover a private caregiver?

Usually not. Most homeowners policies don't cover household employees, so injuries during a shift are typically not included.

What is household employee workers' compensation insurance?

If your caregiver works in your home regularly, they may be classified as a household employee. In that case, you're typically required to carry workers' compensation insurance, which covers their medical bills and lost wages if they're injured on the job. Requirements vary by state, so it's worth checking the rules where you live.

How much does workers' compensation cost for a caregiver?

Most families pay a few hundred to about $800 per year, depending on your location, your caregiver's wages, and how often they work.

What happens if a caregiver gets injured in my home?

Without workers' compensation in place, you may be responsible for medical bills, lost wages, or legal claims related to the injury.

How do I submit an insurance claim on Herewith?

For claims information, please contact the Herewith Customer Support team at support@herewith.com or call 415-506-9776 and we’ll connect you with the insurance provider.