Household Staff and Your Liability in Fairfield County, CT: What Homeowners Should Know

Connecticut Valuables Series · Part 4 of 6
By Jon Merwin, Founder and CEO, Licensed Insurance Advisor

Many households in Greenwich, Darien, New Canaan, Westport and Fairfield rely on people who help run the home: nannies, housekeepers, private chefs, drivers, caretakers and estate managers. Having staff changes your liability picture in ways that aren’t always obvious until something goes wrong.

This guide focuses on one thing: liability, meaning your exposure if someone claims you’re responsible for an injury, property damage or an employment decision. It isn’t tax or employment-law advice. Your accountant and attorney should guide you on those obligations.

Who counts as a household employee?

The IRS explains in Publication 926, Household Employer’s Tax Guide, that you have a household employee if you hire someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done, but how it’s done. Its examples include babysitters, caretakers, cooks, drivers, housekeepers and nannies. It also notes that a worker provided and controlled by an agency isn’t your employee, and neither is a self-employed person who controls how the work is done.

That distinction matters for insurance, too. Whether someone is your employee, an agency’s employee or an independent contractor affects who may be held responsible when something goes wrong.

Liability to guests, neighbors and the public

The personal liability section of a homeowners policy is designed to protect you if you’re sued and found legally responsible for someone else’s injury or property damage, as the Connecticut Insurance Department’s glossary describes it. When staff are in the picture, the situations to think through include:

• A guest trips on equipment a housekeeper left on the stairs.
• A nanny supervising your children and their friends at the pool or on a playdate.
• A dog walker or caretaker whose handling of your dog leads to a bite.
• A gardener whose equipment damages a neighbor’s car or property.
• A chef hosting a dinner party at your home.

Ask your agent how your policy treats claims that arise from what your household employees do while working for you, and whether the policy defines “insured” broadly enough for your situation.

When staff drive

Driving is one of the largest liability exposures for households with staff. A driver or nanny may take your children to school in Westport, run errands in Greenwich or drive to New York.

Staff driving your vehicles

If a household employee regularly drives your cars, your carrier will usually want to know and may require that the person be listed as a driver. Check driving records before hiring and periodically afterward, and confirm with your agent that each regular driver is properly disclosed.

Staff driving their own vehicles for you

If an employee uses their own car to run errands or drive your children, an accident could lead to a claim against you as well as against them. Ask how your auto and umbrella coverage respond in that case, and ask staff to show proof of their own auto insurance.

Employment practices liability

Household employers can face employment-related claims just as businesses do: allegations of wrongful termination, discrimination, harassment or retaliation. In Connecticut, the Commission on Human Rights and Opportunities (CHRO) enforces the state’s anti-discrimination laws, including in employment. Ask your attorney which federal and Connecticut employment laws apply to your household.

Employment practices liability (EPL) coverage for household employers can pay defense costs and covered settlements or judgments for these claims. Many high-value home policies offer it as an endorsement, sometimes bundled with an umbrella. Important points to confirm:

• Which kinds of claims are covered and which are excluded, such as wage-and-hour disputes.
• Whether defense costs reduce the limit.
• Whether the carrier provides access to employment-law guidance before a claim, such as help with a termination.
• Whether the coverage applies to staff at every home you own.

Raising your limits with an umbrella

A personal umbrella policy sits above your home and auto liability coverage and can add higher limits, usually in increments of $1 million or more. For households with staff, multiple drivers, a pool or a second home, umbrella limits deserve a fresh look whenever you add someone to the household payroll.

Good practices that reduce liability

• Put duties, hours and expectations in a written agreement, reviewed by your attorney.
• Run background and driving-record checks, with the person’s consent and in line with applicable law.
• Keep staff contact details, emergency procedures and alarm instructions up to date.
• Set clear rules about guests, social media and photographs of your home and family.
• If you use an agency, ask what insurance the agency carries and get it in writing.
• Tell your agent when you hire, change roles or let someone go.

Where the carrier fits

Cincinnati and Chubb write homes at any dwelling limit, so we quote both. We review liability, auto, umbrella and employment practices options together and compare options from 40+ carriers. See our high-net-worth insurance page or our guide to Greenwich high-value home insurance.

We serve homeowners in Greenwich, Darien, New Canaan, Westport and Fairfield from our Fairfield office at 1885 Post Road and by phone, email and online.

Frequently asked questions

Is my nanny or housekeeper my employee?

Under IRS Publication 926, a household worker is generally your employee if you control what work is done and how it’s done. A worker provided and controlled by an agency generally isn’t. Ask your accountant about your situation.

Does homeowners insurance cover liability involving household staff?

The personal liability section may respond to claims involving injury or property damage to others, but terms vary. Ask your agent how your policy treats claims arising from household employees’ work.

What is employment practices liability for households?

It’s coverage for employment-related claims by household employees, such as wrongful termination, discrimination or harassment. Many high-value policies offer it as an endorsement.

My nanny drives my children. What should I check?

Tell your carrier if staff regularly drive your vehicles, check driving records, and confirm how your auto and umbrella policies respond if staff drive their own cars for you.

Do I need an umbrella policy if I have household staff?

It’s worth reviewing. Staff, extra drivers and guests can increase liability exposure, and an umbrella adds limits above your home and auto policies.

Sources

• Internal Revenue Service, Publication 926 (2026), Household Employer’s Tax Guide
• Connecticut Insurance Department, “Homeowners Insurance – Common Terms”
• Connecticut Commission on Human Rights and Opportunities (CHRO)

Coverage depends on your policy, the carrier and its underwriting. Read your policy wording for the terms that apply to you. This article is general information, not legal or tax advice.