Do Nannies Need to be Bonded?

Professionals that carry a surety bond, or are “bonded,” have contracted with an outside insurance company who finds them a low risk of payout for damages, theft, or failure to perform a contracted service. As such, it acts as a reassurance to clients that the service provider is trustworthy and honest.

The majority of reputable nanny agencies are licensed (if their state requires it) and bonded, but that doesn’t mean that the nannies supplied by those agencies are automatically covered under the surety bond set forth by the agency. If the nannies are employees of the agency, not the family, and the agency is willing to vouch for the honesty and good moral standing of the nannies under their employ, they may be covered under the bond. For nannies who are employees of the families whom they work, regardless of how they found their post, bonding can be a bit trickier of a situation.

What a Surety Bond Does

Essentially, a surety bond is designed to be written to cover a service provider’s commitment to one client. Should that service provider fail to complete the agreed-upon tasks, be accused of theft, or cause damage to their client’s property, the surety bond will be paid to that client as compensation. If you are an employer seeking to engage a bonded nanny, you’re basically getting a seal of approval from a bonding insurance company stating that they’ve found the nanny to be extremely low risk after examining her background and have, as such, chosen to write her a surety bond. Insurance companies will almost never write a surety bond for any service provider that they feel is at even a slight risk of causing a claim to be filed.

What a Surety Bond Doesn’t Do

Bonding insurance does not cover allegations of physical or sexual abuse, neglect, or a breach of confidentiality. This type of coverage is referred to as personal and general liability insurance, and is carried for the express purpose of providing a nanny with financial protection against claims filed against her as a result of an injury sustained by a charge through what is deemed to be negligence, physical or sexual abuse, or assault. This coverage can also be difficult to obtain, but may actually prove to be quite valuable; falls, injuries, allergic reactions to new foods and other similar situations can occur regardless of a nanny’s vigilance, and can leave her at significant financial risk should her employing family file a claim or lawsuit against her. By carrying a personal and general liability insurance policy, a nanny is able to protect herself from financial devastation, and the family that employs her can rest assured that their interests are protected by that policy as well.

In Conclusion

Most nannies do not carry a surety bond. Those who choose to may do so because it’s a means of providing employers and clients with a greater measure of security and inspires confidence in the bond holder. In some cases, this may increase a reputable nanny’s chances of securing a post, but it is certainly not necessary for employment and can be rather confusing to both nannies and their employers; because the bond offers only a one-time payout as a result of very specific circumstances, the scope of coverage is quite limited and not actually intended to be comprehensive. In all actuality, the bond is a rather expensive reassurance that a nanny will not steal from her employers or damage their property. Should such theft or damages occur, and the total losses are greater than the amount the nanny is bonded for, the bonding company will only release the bonded amount. As a result, even a bond is no guarantee that an employing family is fully protected from such acts.

Nannies considering a surety bond might be better advised to put their money towards the premiums of a personal and general liability policy, which actually does provide some semblance of coverage against damages for both a nanny and her employers. Unless a particularly high-quality post requires that a nanny be bonded as a condition of employment, it may not be worth the time or money that acquiring a surety bond requires.

Taken From Nanny Jobs