How 5 Years of Change Have Reshaped the EPLI Landscape

• By: Olivia Overman
• February 9, 2026

Five years is a long time in the employment practices liability insurance (EPLI) market. Since 2020, rising litigation costs, social movements such as #MeToo, increased regulatory scrutiny of employment practices, and growing employee awareness of their rights have made the EPLI market a somewhat complex landscape.

A hot topic since the coronavirus pandemic, the debate surrounding working from home, remote work and hybrid environments has also become an ongoing challenge for many employers.

“As people began returning to the office on a permanent or hybrid basis, we often saw discrimination claims from employees whose work accommodations requests had been turned down,” says Chris Williams, employment practices liability product manager, Travelers. “And once those face-to-face interactions resumed—not to mention work trips and holiday parties—the industry saw an increase in harassment claims.”

Additionally, “remote work has brought a rise to work outside normal business hours and instant messaging platforms, such as Teams and Slack,” says Mike Maletsky, vice president, technology, errors & omissions and cyber at Hiscox. “An increasingly interconnected work and personal life could bring new types of EPLI claims and situations.”

Further, while the #MeToo movement was largely seen as a social movement, it “has evolved into employee activism,” says Sandra Tata, specialty liability product manager lead for HSB, part of Munich Re. “Initially, the movement started as a means of calling out sexual harassment and holding individuals and organizations accountable. Employees are now pushing back on their employers in response to the way organizations handle sexual harassment issues, which have sparked a new type of activism.”

As employees become more willing to report misconduct, organizations face greater scrutiny in how they handle complaints. “Employees continue to demonstrate behaviors of being more emboldened to speak their minds with greater confidence and motivation to be heard,” Tata says.

Companies’ diversity, equity and inclusion (DEI) policies have also impacted the EPLI market. “These practices have been heavily politicized and can vary by company,” Maletsky says. Nevertheless, these initiatives have prompted lawsuits claiming reverse discrimination against majority-group employees.

A QBE survey of 200 legal and HR leaders at companies with $500 million to $5 billion in annual revenue found that 69% of respondents are concerned about claims or litigation related to their organization’s DEI programs in the next 12 months. Fifty percent are somewhat concerned and 19% are very concerned, while 25% are not too concerned and 7% are not concerned at all, the report said.

Looking ahead, the use of artificial intelligence (AI) by organizations will play a central role in an ever-changing EPLI market.

“Other factors that have helped create a challenging EPLI environment include increased wages and attorneys’ fees, which have made it more costly to resolve EPLI claims,” Williams says. Increased salaries mean that any employee claims—such as wrongful termination or discrimination—against an employer have the potential to result in larger compensation levels. And increasing attorneys’ fees means that the costs for defending against a claim have increased.

“Defending wrongful employment practices claims can be costly,” Tata says. “When wrongful employment allegations are made against an employer, the cost for legal defense can be significant. EPLI coverage can minimize the financial impact that can threaten an employer’s financial status.”

These factors have made EPLI claims more expensive to both manage and resolve, placing added financial strain on employers and their insurers. The market is more complex and costly, leading to a tightening of underwriting by some carriers.

As trusted advisors, “the more agents know about employment law, the better they can help their EPLI customers by pointing out employment-related areas and issues that can be problematic for companies,” Williams says. “The best agents also have a list of resources, such as materials, training and strategies customers can use to build a positive work culture.” 

“Businesses of all sizes are at risk,” Tata says. “All businesses make employment decisions—including hiring, compensating and terminating—that can expose them to wrongful employment practices claims.”

Olivia Overman is IA content editor.