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Insurance

Nanny insurancePAYE for Nannies can help you with all the insurance issues associated with becoming an employer.  We set out clearly and up front the costs for each type of insurance so you can make an informed decision.  Anyone can take advantage of our insurance services even if you’re not using us for your payroll.
There are three quite separate types of insurance which you will need to consider when you become an employer.

Home Help Policy (Employer’s Liability Insurance & More)

All employers must have Employer’s Liability Insurance. It is a criminal (not civil) offence to employ someone without having this insurance in place.  PAYE for Nannies has sourced a suitable insurance product that has been designed specifically for individuals who employ people in their home. The policy provides a unique range of covers that will protect your position as an employer of individuals whilst in the course of their employment by you. In particular, it offers the following:

Employers’ and public liability – The Home Help policy provides £10million of Employer’s Liability cover and £5million of Public Liability cover, which is more than meets your legal obligation to provide liability cover.

Legal expenses and compensation awards – current legislation provides employees with a broad range of rights which apply in the home as much as they do factory or office workers. However good your current relationship is there is always the possibility that this may deteriorate following a change of circumstances. What may initially seem to be a minor issue can quickly escalate and without warning you find that you are being summoned to appear before a court or tribunal. This policy provides a specialist legal advice service that will listen to the problem and advise on the action that should be taken in order for you to resolve the matter within the guidelines of current legislation. However, if, despite taking this action, the matter is referred to a tribunal the policy will pay for the cost of your legal expenses and any compensation awarded against you up to £100,000. Therefore, this policy will offer support, guidance and financial protection for a situation that without such assistance can become a very stressful, time consuming and costly experience.

Personal accident – if an employee suffers an injury whilst working the employer may feel morally responsible even though there is no legal liability attaching. This cover provides a benefit should certain types of injury arise providing compensation for situations that may be either permanent (loss of an eye) or temporary (broken arm).

Financial loss – A range of benefits for financial loss the employer may suffer following the acts of their employees, such as causing an insurance policy to fail, stealing employers property or money by improper use of credit cards.

Helplines – a 24 hour helpline on employment and health and safety matters.

Statutory Sick Pay Insurance Policy (SSP)

In April 2014 the Government abolished the ability of small employers to recover Statutory Sick Pay from HM Revenue in the event of an extended period of sickness of one of their employees. This means that employers are now exposed to a significant financial risk if their employee develops a serious illness or has an accident which incapacitates them for an extended period. If the nanny earns at least £112.00 per week gross, Statutory Sick Pay (“SSP”) is payable for up to 28 weeks at a flat rate of £88.45 per week, even if the nanny only works one day per week! This means the employer could be liable for well over £2,000 in SSP costs.

Mark Bates Ltd. can offer a policy which will allow the employer to mitigate this risk.

The employer will need to pay any benefits for the first weeks of any period of sickness and the policy will provide benefits for the weeks after this up to the time SSP is no longer payable at 28 weeks.  The cost of the policy depends on the number of weeks of SSP the employer chooses to pay before the policy covers the payments. The policy costs £135 per annum if the employer pays the first 2 weeks of SSP and falls in stages to £80 if the employer pays the first 8 weeks of SSP. The minimum period the employer can choose to pay is 2 weeks and this policy is contingent on the employer having taken out the Home Help insurance policy detailed above.

Nanny Policy (Liability Insurance)

If you are using childcare vouchers in England your nanny will need to be registered with OFSTED.  It is a mandatory requirement for registration that the nanny has Public Liability Insurance. Even if you are not using childcare vouchers you may think it worthwhile to ask the nanny to take out insurance for your own peace of mind. Public Liability insurance will provide cover for the nanny if you need to take action against her if anything happens to the children whilst in her care. Without insurance, few nannies would be able to cover any costs you might incur in such circumstances.

Please note that in many cases, even though the policy will be in the nanny’s name and she will be the person insured, the nanny may expect the client to pick up the cost of this.
The policy offered by Mark Bates Ltd. provides excellent cover at a reasonable price. Benefits include: