When you host an au pair, you become an employer. And in many states, that means you're legally required to carry workers' compensation insurance. Here's everything you need to know.
What is Workers' Compensation?
Workers' compensation (often called "workers' comp") is insurance that provides benefits to employees who are injured or become ill on the job. For au pair host families, it covers:
- Medical expenses — Hospital bills, doctor visits, prescriptions
- Lost wages — If your au pair can't work due to injury
- Rehabilitation — Physical therapy and recovery costs
- Death benefits — In worst-case scenarios
Does Your State Require It?
Not all states require workers' comp for household employees. Here's a quick breakdown:
States That Require Workers' Comp for Au Pairs
Always Required (regardless of hours/wages):
- California
- New York
- New Jersey
- New Hampshire
- Hawaii
- Alaska
Required Above Thresholds:
- Massachusetts (16+ hours/week)
- Connecticut ($1,000+/quarter in wages)
- Iowa ($1,500+/quarter)
- Minnesota ($1,000+/quarter)
- Washington (40+ hours/quarter)
States Where It's Optional
Most other states exempt household employers from workers' comp requirements. However, just because it's optional doesn't mean you shouldn't get it.
If your au pair is injured and you don't have coverage, you could be personally liable for their medical bills — which can easily reach tens of thousands of dollars.
How Much Does It Cost?
Household workers' comp is surprisingly affordable:
| Coverage Level | Typical Annual Cost | |----------------|---------------------| | Basic | $500 - $800 | | Standard | $800 - $1,200 | | Premium | $1,200 - $1,500 |
The exact cost depends on your state, the coverage limits, and sometimes your au pair's duties.
How to Get Workers' Comp
You have a few options:
1. Household Employment Specialists
Companies like GTM Payroll and HomeWork Solutions specialize in household employer compliance. They can bundle workers' comp with payroll services.
2. Small Business Insurance Carriers
Carriers like NEXT Insurance offer workers' comp for household employers. These often have simple online applications.
3. State Funds
Some states (like California and New York) have state-run workers' comp funds. These are often a good option if you're having trouble finding private coverage.
What If Something Happens?
If your au pair is injured:
- Get medical attention — Safety first
- Report the injury — Notify your insurance carrier within 24-48 hours
- File a claim — Your carrier will guide you through the process
- Document everything — Keep records of the incident and treatment
Common Questions
Does the agency's insurance cover workers' comp?
No. The medical insurance provided by au pair agencies is for the au pair's personal health — it does not cover work-related injuries. That's what workers' comp is for.
What if my au pair is only here for a year?
Workers' comp requirements don't have time minimums. If you have an au pair, you need coverage from day one.
Can I add my au pair to my homeowners insurance?
Homeowners policies typically exclude household employees. You need separate workers' comp coverage.
Next Steps
Not sure what you need? Take our 2-minute quiz to get personalized recommendations based on your state.