Our previous blog series, outlined the basics of Employment Practices Liability Insurance (EPLI) and discussed its importance. This blog will cover the evolving EPLI market and discuss key trends to watch this year.
Current Market
The EPLI market remained stable in 2024. Pricing is predicted to fluctuate by +/- 5% in 2025, with the US market projected to reach 7.2 billion USD by 2033. Claims frequency also increased in 2024. With rising claims, increased regulatory scrutiny, and emerging risks, EPLI remains a crucial aspect of your insurance portfolio.
Key trends
- AI Usage
- The implementation of AI systems in the employment process introduces additional EPLI exposures due to potential biased programming.
- Pay Transparency
- The number of states imposing pay transparency laws is rising, mainly focusing on increased access to salary data and the disclosure of compensation information.
- Workplace Harassment
- Guidelines set by the EEOC clarify a broader definition of “sexual harassment” and expand protection for “Online Harassment”.
- Discrimination
- The most common type of discrimination charges are retaliation claims filed by employees.
How to reduce claims
- Implement thorough and updated training
- Regularly evaluate policies
- Investigate all allegations of misconduct
- Adhere to and enforce an employee handbook
- Provide accurate documentation
By consistently following these five steps, you can significantly reduce the risk of employment claims for your business while fostering a more accountable workplace.
Recent news
A recent class action lawsuit highlights the importance of comprehensive EPLI coverage, as well as adequate cyber liability insurance.
Erie Insurance is facing data protection negligence claims from both a customer and a former employee. This case serves as a critical reminder that while insurance companies protect others from risks, they also need to properly protect their own data and systems. This situation demonstrates that insurers must take cybersecurity and data protection as seriously as the risks they help their clients manage.
Check out our previous blog to learn more about cyber liability insurance here.
Summary
The employment landscape continues to evolve rapidly, creating new challenges and exposures for all businesses. As regulatory requirements expand and workplace dynamics shift, organizations face an increasingly complex web of potential liabilities. The growing EPLI market reflects these realities, with businesses recognizing that comprehensive coverage and proactive risk management are essential. Companies that prioritize updated policies, employee training, and comprehensive insurance protection will be properly positioned to navigate this challenging environment.
Choosing Callahan Risk
Callahan Risk provides the expertise needed to navigate today’s complex employment liability landscape. We partner with leading carriers to deliver EPLI coverage tailored to your business’s specific risks and requirements. Contact us today for guidance on Employment Practices Liability Insurance.
