Workers’ Compensation Insurance for Household Employees

If you have household workers, you must have the appropriate policies in place to avoid risking costly financial losses. There are many different risks but injuries are arguably the largest. It can come in many forms, depending on the factors that go into play or the occupation held; nevertheless, if an employee is injured on your property, you can be held responsible for their losses. Workers’ compensation insurance for household employees helps homeowners mitigate these risks and stay protected.

Do I Need Workers’ Compensation Insurance for Domestic Employees?

If you have employees working in your home or on your property, you’re going to need to have workers’ compensation coverage. There are a few considerations you’ll need to remember:

• Some home insurance policies already have workers’ comp included in their coverage.
• Policy limits exist and they may not be enough to cover the liability you are exposed to.
• Furthermore, there are state laws to consider and stipulations that can occur when contractors work a certain amount of hours at your home.

Workers comp’ for household employees is a crucial step in staying protected. Just as a homeowners insurance policy and umbrella insurance coverage help you reduce exposure to such losses, if you have workers helping to run your estate, it’s important to understand how you can stay protected.

Such protections are available to homeowners employing workers, but they don’t protect employees of a home business.

What Is Domestic Workers’ Compensation Insurance?

Those who are injured or become ill on the job are covered by domestic workers’ compensation insurance. In addition to covering medical bills, it can also cover lost wages. As the household employer, you are also protected from liability under this coverage.

Some home insurance policies may provide households with this coverage, but you’ll want to speak with an insurance agent to best understand the details of your specific policy.

Depending on your coverage needs and who you enroll with, an insurance agent can also help you enroll in the right policies to save your money and mitigate your risks at the same time.

How Expensive Is Workers’ Compensation Insurance for a Household Employee?

The amount you’ll pay for workers’ compensation insurance for household employees will vary. One of the core reasons for this, among others, will be that domestic workers have varying jobs.

For example, the cost of nanny workers’ compensation insurance will be different than coverage for a personal chef. But determining your premiums can be a bit more complicated than looking at occupation alone.

The key to remember is that premiums are created based on risk. If there is more risk, you’ll have to pay more for your coverage, and vice versa. The same goes for the amount of coverage you require, as purchasing one policy will not cost as much as purchasing five policies.

Risk and the number of policies you need aside, while risks are assessed, each carrier is going to look at these factors differently. This means homeowners can find the same coverage protecting against potential liability losses, but at different prices.

When shopping for insurance, whether it be a standard home insurance policy, umbrella insurance, or workers’ compensation for household employees, it’s always important to shop among various carriers to pinpoint the right coverage.

What Are Domestic Workers?

It’s important to understand and define who domestic workers are. According to the International Labor Organization (ILO), a domestic worker is any employee which works in or for private households.

This could mean taking care of the physical estate, logistics around the home, or caring for members of the household, as well. Whether they are full-time, part-time, living on the property, or living offsite, the term still qualifies. Here are some common examples of who can fall under this category:

• Au pairs/nannies
• Babysitters
• Caretakers
• Chauffeurs/personal drivers
• Companions
• Handymen
• Janitors
• Landscapers/gardeners
• Maids/housekeepers
• Nurses
• Personal chefs
• Personal healthcare professionals
• Wait staff

Failing to recognize such statuses is a great way to open yourself to a lawsuit. If you have one or more people that fit this qualification, domestic workers’ compensation insurance can apply and help you lower your risk for liability.

Regulations for Workers’ Compensation Insurance for Household Employees in Texas

Domestic employment can range from hiring a nanny to landscaping services and more. Texas requirements for workers’ compensation insurance are on a voluntary basis, but failing to provide the right coverage opens you up to potential lawsuits.

As you can see in this 2023 Texas household employment tax and labor law guide a variety of threats to your own personal finances are at stake without proper coverage. This includes paying for medical expenses and lost wages if an employee is injured or becomes ill on your property.

Furthermore, these costs are only increased by the potential legal expenses that can arise when protections are not put into place.

Domestic Workers Insurance Act

There is a growing movement to protect the rights and well-being of domestic workers, as evidenced by the recently proposed Domestic Workers Bill of Rights Act. Again, as of this writing, Texans who employ workers for their homes can provide workers’ comp on a voluntary basis, but changing laws and political pressures are making this requirement an important issue to watch for employers.

Can a Homeowner Buy Workers’ Compensation Insurance?

Yes, there are plenty of options available to homeowners in need of workers’ comp insurance. This is a great tool as we have mentioned to protect your personal finances and keep your workers better protected.

Risks are present in any place of work and that includes your home. When workers are faced with injuries or illnesses caused by working to keep your household going, it’s best to stay prepared as their employer.

Freedom Insurance Group works with more than 25 top-rated insurance carriers that offer a wide range of insurance products to our clients. By doing so, we have more products, discounts, and ways to stay covered for less.

It also allows our agents with better ways to compare your coverage. Remember, the level of risk you possess is going to determine the amount you’ll pay in premium. However, there are still other factors at play because each brand looks at things differently.

In order to guarantee that you are paying the lowest price while still staying adequately protected from a trusted provider, you’re going to need to shop around. It can be a time-consuming process, which is why we do it for you.

Our relationships with established, reliable carriers allows us to deliver quick, accurate quotes for your coverages. Since 2005, we’ve been helping homeowners in Texas stay protected in a variety of ways. We bundle your coverages and find applicable discounts to ensure you’re protected in every way necessary, all for the best rate possible.

If you have domestic employees, you need to limit your risks and the right coverages will do just that. Give us a call today to see how workers’ compensation insurance for household employees can help you stay covered through affordable coverage.