Dog bites

I'm sure that there is more to it than that.

How did it happen?

What reason did your claim rep give you for not paying?

 

do you have any type of insurance coverage for being an employer? Did you insurance agent know that you had a live-in employee that you needed coverage for when he/she wrote or updated your either your personal or homeowners insurance policy?

Did you hire her through an agency? Do you pay her directly or through an agency?

are you in the US? Because charlady is not a common word here......and honestly I had to look up what it meant....

 

I thought it might be that.

No worries.

If you are sued, your insurance company will defend you.

Your charlady is on her own.

Do not discuss the matter with anybody except your insurance company's claim representative. Do not offer to pay anybody anything.
Presumably your claim rep sent a denial letter to the victim so if the victim tries to talk to you about it, refer the victim back to your insurance company.
If your charlady tries to involve you just say "Not my problem."

 

IP address is South Africa but OP says California.

The resident employee is apparently not an issue other than the insured not being liable for the negligence of the employee.