Domestic Staff Insurance

EPLI is the coverage most household employers have never heard of, and it's the one that can save you from a six-figure legal bill. It protects against claims made by employees alleging wrongful termination, discrimination, harassment, retaliation, or wage violations. These claims are more common in private households than people realize, partly because the close working relationship creates more opportunities for conflict and partly because employees are increasingly aware of their rights.

Mitigating Risks of Wrongful Termination and Discrimination Claims

Firing a nanny because she's pregnant, letting go of an older estate manager and replacing him with someone younger, or terminating a housekeeper who filed a wage complaint: each of these scenarios can generate a discrimination or retaliation lawsuit. Defense costs alone typically run $50,000 to $150,000, even if you win. EPLI covers both defense costs and settlements. Agencies like Avery Insurance Agency, which has spent over 125 years building tailored protection portfolios, can help you identify the right EPLI limits based on your staffing situation and risk profile.

Sexual Harassment and Hostile Work Environment Protections

Private households present unique harassment risks because the workplace is also someone's home. A family member's inappropriate behavior toward staff, unwelcome comments, or a hostile atmosphere can all trigger claims. EPLI covers these situations, including the legal defense and any resulting settlement or judgment. Having a clear anti-harassment policy in your employee handbook isn't just good practice: it's often a prerequisite for EPLI coverage.

Here's where most families get blindsided. Standard homeowners policies, even high-value programs from carriers like Chubb or PURE, typically exclude or severely limit coverage for injuries to household employees. Your policy might cover a guest who trips on your front steps, but the same injury to your housekeeper falls into a different category entirely.

Why Your Umbrella Policy Might Not Cover Domestic Staff

Umbrella policies follow the same exclusions as the underlying homeowners policy. If your homeowners policy excludes employee injuries, your umbrella won't fill that gap. Some umbrella policies contain explicit employment-related exclusions that eliminate coverage for any claim arising from an employer-employee relationship. This is the single most common coverage gap we see in high-net-worth households, and it's the one that causes the most financial damage when a claim hits.

Addressing Negligent Supervision and Third-Party Lawsuits

Employer liability also extends to situations where a third party is harmed by your employee's actions. If your nanny causes a car accident while driving your children, or your estate manager injures a delivery person through negligence, you could face a lawsuit alleging negligent hiring, training, or supervision. A dedicated employer liability policy, or a properly endorsed umbrella, covers these claims. The consultative approach that firms like Avery Insurance Agency take, where they systematically uncover these vulnerabilities, is exactly the kind of review every household employer needs.

Do I need workers' comp if my nanny only works 10 hours a week? It depends entirely on your state. Some states like California require coverage regardless of hours, while others set minimum thresholds. Check your state's department of labor website or ask your insurance advisor.

Can I just add my housekeeper to my homeowners policy? No. Homeowners policies generally exclude or limit coverage for household employees. You need a separate workers' comp policy and likely an EPLI policy as well.

How much does domestic staff insurance typically cost? Workers' comp premiums for household employees usually run between $1,500 and $4,000 annually depending on your state, payroll size, and job classifications. EPLI adds roughly $800 to $2,500.

What happens if I don't carry workers' comp and my employee gets hurt? You're personally liable for all medical bills and lost wages. Your employee can also sue you directly for damages, and your state may impose fines and penalties on top of that.

Does my umbrella policy cover employment claims? Usually not. Most umbrella policies contain employment-related exclusions. Review yours carefully with an advisor who understands household employer risks.

Protecting your household staff with proper insurance isn't optional: it's a legal requirement in most states and a financial necessity everywhere. The combination of workers' compensation, employment practices liability, and employer liability coverage creates a foundation that shields your family's assets from claims that can easily reach six figures. Specialized coverages like non-owned auto and privacy protection round out the picture for families with larger or more complex staffing arrangements. If you haven't reviewed your household employer exposures recently, now is the time. Avery Insurance Agency's consultative approach is designed to uncover exactly these kinds of hidden vulnerabilities, building custom solutions that let you focus on your life rather than worrying about what your policies don't cover. Reach out for a comprehensive review of your household employer risks: the peace of mind is worth every minute.