Texas is unique: it's the only state where no employer is required to carry workers' compensation insurance. But that doesn't mean you shouldn't have it.
Texas Requirements
Required:
- ✅ Auto insurance addition (if au pair drives)
Not Required But Recommended:
- 💡 Workers' Compensation Insurance
- 💡 Supplemental medical insurance
- 💡 Umbrella liability coverage
Workers' Compensation: Optional But Smart
Why Texas Is Different
Texas is the only state that doesn't require any employer — business or household — to carry workers' comp. You can legally operate without it.
Why You Should Get It Anyway
Just because it's optional doesn't mean it's a bad idea:
Without workers' comp, you're personally liable:
- If your au pair is injured on the job, YOU pay
- Medical bills can easily reach $50,000+ for serious injuries
- You could be sued for negligence
- Your homeowners insurance likely won't cover it
Workers' comp protects you:
- Insurance pays medical bills
- You're protected from lawsuits
- Peace of mind for everyone
The Math
| Scenario | Cost | |----------|------| | Workers' comp premium | $500 - $1,000/year | | ER visit for broken arm | $5,000 - $15,000 | | Surgery for back injury | $50,000 - $150,000 | | Lawsuit settlement | $100,000+ |
The insurance is cheap compared to the risk.
How to Get Coverage
Even though it's optional, many insurers offer household workers' comp in Texas:
- GTM Payroll
- HomeWork Solutions
- NEXT Insurance
- Texas Mutual (state fund)
Cost estimate: $500 - $1,000/year
Auto Insurance
Texas requires minimum auto insurance coverage. If your au pair drives:
Minimum Requirements (30/60/25)
- $30,000 bodily injury per person
- $60,000 bodily injury per accident
- $25,000 property damage
Adding Your Au Pair
- Contact your auto insurer
- Add au pair as a listed driver
- Provide their license information
- Consider higher coverage limits (minimums are low)
Cost Impact
Adding an au pair in Texas typically costs $200 - $700/year extra. Texas rates are moderate compared to coastal states.
Texas-Specific Notes
- Texas accepts foreign driver's licenses
- An International Driving Permit (IDP) is helpful but not required
- Your au pair can get a Texas license if preferred
Medical Insurance
Your au pair agency provides basic medical insurance for the J-1 visa. This covers:
- Doctor visits
- Hospital stays
- Emergency care
- Prescriptions
Agency Plan Limitations
Typical agency plans have:
- Coverage caps ($50,000 - $100,000)
- Deductibles ($250 - $500)
- Exclusions for pre-existing conditions
- Limited dental/vision
Supplemental Coverage
In Texas, supplemental medical insurance is especially valuable because:
- Agency plan limits may not cover serious illness
- Texas medical costs are lower than coastal states, but still significant
- Mental health coverage is often limited on agency plans
Cost: $150 - $350/year
Texas-Specific Considerations
Size of the State
Texas is huge. If you travel within the state or have multiple properties:
- Make sure coverage applies to all locations
- Consider extra auto coverage for long drives
Weather Extremes
From hurricanes on the coast to ice storms in the north:
- Auto insurance should cover weather events
- Make sure your au pair knows how to handle Texas weather
Major Metro Areas
Requirements are the same statewide, but costs vary:
| Area | Auto Insurance | Workers' Comp | |------|---------------|---------------| | Houston | Higher | Average | | Dallas/Fort Worth | Average | Average | | Austin | Average | Average | | San Antonio | Lower | Lower | | Rural Texas | Lower | Lower |
Compliance Checklist
Even without workers' comp requirements, smart Texas families:
- [ ] Purchase workers' compensation (strongly recommended)
- [ ] Add au pair to auto insurance
- [ ] Review agency medical coverage
- [ ] Consider supplemental medical
- [ ] Check homeowners policy for liability gaps
The Bottom Line
Texas gives you the freedom to skip workers' comp, but freedom comes with responsibility. A $600/year policy is a lot cheaper than a $60,000 medical bill.
Get Started
Take our quiz to see what coverage makes sense for your Texas situation.