Last Updated on January 17, 2026 by The Insurance Pros
Do You Need Workers’ Compensation Insurance for Nannies in Michigan?
If you hire a nanny, babysitter, caregiver, or other household employee in Michigan, you may be required to carry
You may be required to carry workers’ compensation insurance. Many families assume workers’ comp only applies to businesses, but once you employ someone, under certain conditions, your home can be treated as a workplace, and you can be treated as an employer under Michigan law.
As a general rule, Michigan workers’ comp requirements may apply when a household employee works
35 hours or more per week for 13 weeks or longer during the year. Because household employment situations vary,
It’s smart to confirm your obligation before an injury or dispute turns into an expensive problem.
Quick answer: You may need workers’ comp coverage for a nanny or household employee in Michigan if the work schedule meets
state thresholds. Homeowners insurance usually does not replace this type of coverage for on-the-job injuries.
What Workers’ Comp Can Cover for Household Employees
Workers’ compensation coverage is designed to respond when an employee is injured while performing job duties. For household employees,
That can include injuries from lifting, slips and falls, or other accidents that happen while working in your home.
- Medical treatment and rehabilitation
- Partial wage replacement if time off work is needed
- Ongoing care for serious injuries
- Potential reduction in personal liability exposure compared to paying out-of-pocket
What Happens If You Don’t Carry It?
If you’re required to carry workers’ compensation and you don’t, you can expose yourself to major out-of-pocket expenses and legal risk.
Even one injury can become a long-term financial issue if medical care and missed work time add up.
- Civil lawsuits: An injured worker may pursue damages
- Out-of-pocket costs: Medical bills and lost wages can fall on you
- Criminal penalties: State law can allow fines up to $1,000 and up to 6 months in jail
- State enforcement: The state may issue citations and additional penalties depending on the situation
Michigan Workers’ Disability Compensation Agency (WDCA):
Workers’ comp information and employer guidance
Will Homeowners Insurance Cover a Nanny’s On-the-Job Injury?
In most cases, no. Homeowners insurance is built for personal liability and property risks, not for employment-related injuries.
Even if a homeowner’s policy provides some liability coverage, it typically does not function like workers’ compensation coverage for a household employee.
Why this matters: Workers’ comp is designed to address medical costs and wage replacement after a work injury.
Without it, you may be relying on coverage that was never intended to handle employee injuries.
How to Get Workers’ Comp Coverage for a Nanny in Michigan
The easiest way to get the right answer is to quote it based on your specific situation, including hours worked, duties, and how you pay your household employee.
If you’re hiring soon, it’s better to confirm requirements up front than to back into compliance after a problem.
- Gather basics: expected hours, duties, and pay arrangement
- Confirm employment status: most nannies are employees, not independent contractors
- Request a quote: based on your actual household employee scenario
📋 Start a Michigan Workers’ Comp Quote
Related Guide
If you’re also running a business or hiring outside household help, you may want the full Michigan workers’ comp overview:
Michigan Workers’ Compensation Insurance: Requirements, Cost, and How to Get Covered
Nanny Insurance and Michigan Household Employee FAQs
Do I need workers’ comp for a part-time nanny in Michigan?
Possibly. Part-time work does not automatically eliminate the requirement. Michigan’s rules focus on hours worked and how long the arrangement continues.
If hours increase over time, families can cross the threshold without realizing it.
What if I pay my nanny in cash?
How you pay does not remove your responsibility if the relationship qualifies as employment. The bigger issue is whether you have a household employee.
how many hours they work, and whether the arrangement meets Michigan thresholds.
Can I classify a nanny as an independent contractor?
In many cases, no. Most nannies and caregivers are treated as employees because families control schedules, duties, and how the work is done.
Misclassification can create problems if an injury occurs or if the arrangement is reviewed later.
Can my nanny sue me if they sustain an injury at my home?
Without workers’ comp coverage, families can face higher personal exposure. Workers’ comp is designed to address job-related injuries through a structured process
rather than leaving you to handle medical costs and potential claims on your own.
What information do I need to get a quote?
Start with expected weekly hours, job duties, and how you pay your nanny or caregiver. Clear details lead to more accurate quotes and fewer surprises later.
Not sure if your household employee situation qualifies? If you share the hours and duties, we can help you confirm what workers’ comp may look like in Michigan.
