Corporations know how to protect themselves with legal counsel and strict rules about hiring, firing and unacceptable behavior among peers.  You, as an individual employing domestics, are also liable for suits in these areas.  And, unless you have Employers Practices Liability, you are on your own. This insurance will pay for defense, court costs, and final settlement.  Here are some scenarios:

• Your chauffeur insults your housekeeper.  She hires an attorney.
• You fire a domestic, unjustly in her opinion and she sues you.
• You do not hire someone who also feels the reason was unjust and they hire an attorney.
• You are accused of treating your domestic in a biased manner after reprimanding one and they hire an attorney.