In Portugal if you have a nanny or a cleaning lady you must have workers compensation insurance.
In the case where there is an accident and your employee gets injured, the insurance company will pay for all hospital expenses, the employee salary and in worst cases compensation for invalidity or to the family as death compensation.
It is a compulsory insurance in Portugal since social security will not pay for that, and if you do not have the insurance, you will have to pay everything.
It is also a cheap insurance. For example, if a cleaning lady works one morning per week the cost will be 35 € per year.
Tip from TLAG Partner R2Seguros–Insurance Brokers!