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HOME : Just the FAQs Ma'amBabysitting - You May Need Extra CoverageI baby-sit five days a week in my home for a couple of neighbours. Now I'm wondering if I need special insurance, in case one of the children injured themselves while in my care and the parents sued me. Would I be covered under my home policy? Probably not. Your
home policy likely excludes (does not cover) "claims arising from
business pursuits or any business use of the premises."
"Business,"
as defined by the insurer, means "any regular pursuit undertaken for
financial gain, including a trade, profession, or occupation,"
whether it be at your house, your neighbour's, or the local park, for that
matter. Generally speaking, if you baby-sit on a regular basis, as you do,
and are paid to do so, as I assume you are, then you would likely not be
covered for liability under your home policy. It would be a
different story if you were simply helping out in a pinch; or if you and
your neighbour exchanged baby-sitting services but not money. In those
situations, you would probably be covered under your home policy. If your teenage
children were doing some part-time baby-sitting, they would also be
insured, because your home policy covers the "temporary or part-time
pursuits" of an insured person under the age of 21. But in your case, you
should advise your insurance provider about your home business, and
request that he or she insert an acknowledgment in your policy that you
are covered for liability arising from your baby-sitting service. It's
neither complicated nor expensive, and it's better to be safe than sorry. As a general rule of thumb, if you mean business, you probably need additional coverage. So look after your insurance needs before you look after kids in your home. |
