Workers’ Compensation insurance for their household employees such as a nanny, senior caregiver, gardener or housekeeper. This insurance will reimburse an employee who was injured on the job for qualifying medical expenses and lost wages.  If you don’t have a workers’ compensation insurance policy, you may be personally liable for your injured employee’s expenses.  Perhaps more importantly, workers’ compensation insurance affords you legal protection because when an employee accepts benefits, he or she generally forfeits their right to sue you, the employer, regardless of fault.