How hiring an in-home caregiver affects your insurance

​If you're thinking of hiring an in-home assistant to help you care for a family member or just relieve the burden of daily tasks, make sure your insurance is up to the job. Among considerations: What happens if the caregiver gets injured while working in your home? What if the caregiver damages your property? And will the caregiver be covered to drive your car if they run errands for you or a family member?

Your local PEMCO agent or a PEMCO representative at 1-800-GO-PEMCO can help you identify key coverages that may need updating.

Caregiver coverage and your homeowners policy

Many people assume that because their caregiver is employed by an agency, any on-the-job injury would be handled by the employer. Unfortunately, regardless of their employer's insurance, an individual still can sue you for negligence if they're injured on your property.

If that happens, your homeowners, condominium unit owners or renter insurance would pay your legal defense costs and any damages that might be awarded, up to your policy limits.

If your liability limits are relatively low, you'll want to explore raising them before hiring regular household helpers. Depending on your circumstances and assets, you also may want to consider an umbrella policy, which adds a layer of liability coverage on top of what your policy already offers. An extra $1 million in protection may cost as little as $13 a month.

You'll also want to make sure the agency you use has insurance to protect you if your property is damaged or you're personally injured by one of its employees. Before entering any kind of work arrangement, ask for a copy of the employer's certificate of insurance, which documents the coverage the company offers, as well as their state industrial insurance (workers compensation) registration number. If the employer doesn't provide it, you can check with your state's department/bureau of Labor and Industries.

Caregiver coverage and your auto policy

Often, caregivers help with duties outside the home, including shopping runs and trips to the doctor's office. Make sure you have the right coverage if an assistant or caregiver will be using your car to run errands or driving you or a family member to appointments in their own car.

Not only will we update your policy to reflect that change in drivers, but we can make sure that your Personal Injury Protection and Uninsured Motorist Bodily Injury coverages are adequate to protect you if you're injured while riding as a passenger in the assistant's own car.

Aging in place is a growing trend. The Harvard Joint Center for Housing Studies estimates that one in three U.S. households will be headed by someone age 65 or older by 2035. In-home caregivers and assistants will help make that choice possible for many. Your PEMCO insurance is here for you now and in the future. Please let us know about changes in your life so we can make sure your insurance protection keeps pace. Every situation and event is unique, and your local PEMCO agent or a representative at 1-800-GO-PEMCO would be glad to answer your specific coverage questions.