Question 1

We use a payroll service — does that handle workers' comp?

Accepted Answer

Payroll services (HomePay, GTM, Poppins) handle tax filing and pay-stub preparation but do not place workers' comp coverage. The policy still needs to be brokered separately, and the household remains the named insured and policy owner.

Question 2

Does the homeowners policy include any of this?

Accepted Answer

Most homeowners forms include a small workers' comp endorsement for occasional, non-resident staff (a part-time gardener, an occasional dog walker) — typically capped at low payroll thresholds. Full-time staff, live-in staff, and most multi-staff households need a standalone domestic workers' comp policy.

Question 3

What is the household's exposure if we don't carry workers' comp?

Accepted Answer

In states where coverage is statutory, the household loses the workers' comp statutory immunity — meaning an injured staff member can sue directly in tort, without the limitations the workers' comp grand bargain imposes. State penalties for non-coverage (NY in particular) are also significant: per-day fines, stop-work orders, and personal liability for officers of any LLC or family-office entity employing staff.

Question 4

Do we need EPLI even for a single nanny or housekeeper?

Accepted Answer

Increasingly yes. Wage-and-hour and harassment claims are filed against single-staff households regularly. Premium is modest, defense costs are covered separately, and the policy responds to exactly the dispute pattern most likely to surface — usually around hours, overtime, or termination.

Question 5

What about 1099 contractors instead of W-2 staff?

Accepted Answer

Most state labor agencies and the IRS apply a strict employer-employee test to household staff — the household typically fails the contractor test on control, schedule, and tools. Misclassifying a W-2 employee as a 1099 contractor is one of the most common (and most expensive) household payroll mistakes. We coordinate with the family office and household accountant on classification before placing coverage.

Domestic Workers' Compensation & Household EPLI.