My cleaner, who I pay via Venmo, slipped on a wet step and broke her wrist. She needs surgery ($15,000) and will be out of work for 8 weeks. She is asking me to pay. My liability insurance says “We don’t cover employees,” and I don’t have Workers Compensation insurance.
Key Takeaways
- Employee vs. Contractor: If you control when she comes and how she cleans, and you provide the supplies, the law might classify her as an “Employee.”
- The Workers Comp Exclusion: Homeowner liability policies exclude injuries to people defined as “employees.” You are supposed to have a Workers Comp policy.
- Medical Payments (MedPay): You might have $5,000 in MedPay that can be used regardless of fault, but it won’t cover lost wages.
- Voluntary Compensation Endorsement: This is a cheap add-on to some home policies that covers “residence employees” (maids/gardeners).
The “Why” (The Trap)
The trap is “Misclassification.”
You think she’s a contractor (1099). The IRS and insurance companies might see her as an employee (W-2) because she works for you regularly. If she is an employee, your general liability policy shuts down. You are personally liable for her medical bills and lost wages.
The Investigation: I Called Them
- State Farm: I asked about the “Voluntary Compensation” endorsement. It covers residence employees. It was $50/year. It’s a no-brainer.
- Professional Cleaning Service: If I hire a company (e.g., “Merry Maids”), they carry the Workers Comp. If their staff falls, it’s their problem.
- Airbnb AirCover: They cover “Service Providers” under the liability section generally, unless the provider is determined to be your employee. It’s a dangerous grey area.
Comparison Table: Cleaner Injury Coverage
| Feature | Direct Hire (Venmo) | Agency Hire (Professional) | AirCover |
| Medical Bills | You Pay (if no insurance) | Agency Pays | AirCover (Maybe) |
| Lost Wages | You Pay | Agency Pays | NO |
| Lawsuit Defense | Varies (Employee exclusion) | Agency Liable | YES |
[IMAGE: Photo of a ‘Caution: Wet Floor’ sign. Caption: ‘Always require cleaners to use safety signage’]
Step-by-Step Action Plan
- Hire Insured Cleaners: The safest route is to hire a pro company that carries their own General Liability and Workers Comp. Ask for a “Certificate of Insurance.”
- Add “Voluntary Compensation”: If you hire an individual, call your agent and add this endorsement to your home policy.
- Contractor Agreement: Have your cleaner sign an agreement stating they are an Independent Contractor, they set their own hours, and they carry their own insurance.
- Safe Environment: Fix the loose railing. If the house was unsafe, you are liable regardless of their employment status.
FAQ
Can I ask my cleaner to sign a waiver?
In many states, you cannot waive rights to Workers Comp. A judge will throw it out.
Does umbrella insurance cover this?
Only if the underlying policy covers it. If the home policy excludes “employees,” the umbrella likely does too.
What if she is undocumented?
Labor laws usually still apply. She is entitled to a safe workplace and compensation for injury regardless of status.