Domestic employees often work so closely with their employer that they are considered a part of the family. However, no matter how long-standing the relationship may be, it’s always a possibility a domestic employee could file a lawsuit if they’re injured on the job or feel their rights have been violated.
Make sure you understand your local, state, and federal employment laws — some jurisdictions may also mandate disability insurance.
While a workers’ compensation policy covers expenses related to an employee’s injury or illness incurred on the job, employment practices liability (EPLI) insurance offers protection from the financial consequences of various types of employment-related lawsuits.
Most homeowners and personal liability insurance policies don’t provide coverage for the defense of, or damages resulting from, employment practices. Instead, EPLI is the solution that covers defense costs, settlements, and jury awards related to wrongful employment act claims made by an employee. If you employ a domestic worker, the risk of an underinsured, uninsured, or undocumented employee can be considerable.
Whether you hire a full- or part-time nanny, babysitter, elder caregiver, housekeeper, landscaper, or repairperson, you may still be liable for a worker’s occupational injury or disease, regardless of who was at fault. That’s why it’s essential to have the right insurance coverage in place to help protect against costly claims and potential lawsuits.
