Babysitting makes a great job for responsible teenagers or adults who like kids. With childcare in high demand for many parents, it’s a great way to start earning money and help out the family, friend, or neighbour. If you or your teenager is taking on the task of babysitting, make sure you understand the risks of babysitting and your home insurance.
Understanding the Risks of Babysitting
When your child decides that they might want to take on the task of babysitting for your neighbours, there are some risks you should consider when it comes to your insurance. If something happens, are you protected? Not always. For example, a 14-year-old Albertan was sued for negligence after a fire destroyed a home – even though she had safely gotten her charges and pets out of the house.
While no one wants to squash a teenager’s desire to be responsible and earn their own money there are certain risks with babysitting. What happens if there’s a fire or someone get’s hurt?
“It’s the responsibility of the people hiring the babysitter to make sure the home and environment are safe,” says Samantha Wilson a former police officer and founder of Kidproof, which provides babysitting courses. But that doesn’t mean the babysitter won’t be considered responsible should something happen.
But little thought is spared for the risks and liabilities of babysitting. Teenagers aren’t thinking of them and adults may dismiss them as improbabilities. But babysitting can expose your teenager to being held liable for injury and damage. Because they’re earning money your home insurance may not cover you if something happens – or it may not be enough.
Home Insurance and Personal Liability Coverage
Most home insurance policies include personal liability coverage. If someone is hurt or has their stuff damaged while at your home or due to your unintentional actions personal liability coverage will help protect you financially. It can cover legal expenses and damages if you’re sued.
However this protection has it’s limits. For example if you have $1 000 000 of liability protection but someone sues you and is awarded $1 250 000 you would need to pay the difference out of pocket.
Home insurance personal liability coverage often does not extend to business-related activities. If your teenager babysits you should check with your broker to see if they’re covered.
Is babysitting covered under home insurance?
Home insurance may not cover babysitting as income-generating or business-related activities are usually excluded. However you should talk to your broker to see if you’re covered as it can depend on the insurance company and your individual policy. You may be able to extend your coverage with an additional endorsement.
How do I extended my home insurance policy to include a home-based business?
Many home insurance companies do offer specialty coverage for home-based businesses as an add-on (known as an “endorsement” in insurance lingo) to your home insurance. Some policies may even include casual babysitting. Talk to your broker or insurer about your situation and they’ll be able to help you determine if your home insurance will be adequate protection or they will advise if you need additional coverage.
What kind of insurance does a babysitter need?
A babysitter may need additional liability insurance. You may be able to get a home-based business extension on your home insurance or you may need to purchase a separate insurance policy if you’re not covered.
Talk to your broker about your teenager’s babysitting to see if you need additional protection.
As a babysitter, what can I do to protect myself?
If babysitting or childcare is not covered by home insurance or a home-based business add-on, you should consider purchasing business and/or liability insurance. This will help you cover your expenses if something happens while you’re babysitting, whether a child gets is injured or damage occurs to the home you’re in.
It’s always a great idea to ensure you’re properly trained for babysitting. This can include:
- Babysitting course
- The Red Cross offers one for 11 to 15-year-olds
- The Canadian Safety Council also offers a course
- First aid courses
- Childcare certifications
- Mount Royal’s early learning and childcare program
- Early childhood education and development diploma from Bow Valley College
- Child Care Staff Certification Guide
Discuss your options with your broker and together, you can ensure you or your teenager is protected if you babysit. Your home insurance may not be enough and it’s important to understand the risks and your choices for protection as a single lawsuit can be incredibly expensive and have a long-lasting impact.