If state law requires workers compensation for an au pair and the homeowner lacks workers compensation coverage, what is the result when the au pair is injured at home?

• A. The homeowners policy provides no coverage
• B. Medical payments coverage pays all medical expenses
• C. Medical payments coverage pays only a portion
• D. The homeowners policy provides full coverage regardless of workers comp requirements

Answer: (A)

The key idea is how workers’ compensation interacts with a homeowners policy when the injury involves a domestic employee. An au pair hired by the homeowner is treated as an employee for workers’ compensation purposes. If state law requires workers’ comp and the homeowner doesn’t carry it, the injury falls outside the homeowners policy’s protection. The homeowners policy does not cover injuries to the insured’s employees arising out of and in the course of employment, and there’s no workers’ compensation remedy available in this scenario. Medical payments to others also wouldn’t apply to an employee, so there’s no coverage under the policy for this injury. That’s why the homeowners policy provides no coverage.