August 31, 2022
At Normandy Insurance, as you may know, we offer a Workers' Comp Program for domestic workers through our partnership with Omega Insurance Solutions. This is a great way for agents to add to their client portfolio, but before you consider it, here is the information you will need about domestic workers and the workers’ compensation program.
“Domestic service workers include companions, babysitters, cooks, waiters, maids, housekeepers, nannies, nurses, janitors, caretakers, handymen, gardeners, home health aides, personal care aides, and family chauffeurs. Services that are not performed in or about a private home are not considered “domestic service employment” under the FLSA. (DOL.gov)
The official designation of a domestic worker is anyone that works inside a private home. There are approximately 2.2 million people that fit into this category within the United States. Home health care, child care, housekeepers, assistants, and cleaners are all domestic workers, with health care providers making up a clear majority, according to the Economy Policy Institute.
For workers’ comp insurance, boat captains, pilots, and ranch hands may not be considered domestic workers.
There are many reasons why providing domestic workers with workers’ comp insurance is essential. The first is the most practical: domestic workers are not covered by your homeowner's insurance policy. These gaps in your insurance coverage can cause significant financial setbacks, which increase if you consider not only the medical costs but the wage compensation for which you are now liable. And chances are, while your employee is now recuperating, you still need to pay for help at home.
Workers’ comp pays first. So, if an accident happens in your car, for example, workers’ comp will pay before any auto policy is called upon.
Providing the people that work in your home with workers’ comp insurance also builds loyalty. After all, when someone works in your home with your family, you will build a strong bond. There is less likelihood of them leaving for another job if they have benefits where they are.
Once you have a workers’ comp policy for one full-time employee (20+ hours/ week), you can offer a flat rate program based on the weekly hours worked per employee. By increasing the amount of domestic help in your home, most homeowners will be able to free up their own time, whether for work, fun, or travel.
Interested in submitting an application today? Here’s the link to make it happen: www.normandyins.com/submit-wc-application