Employment Practices Liability Insurance (EPLI) Trends
April 2, 2025
Understand the importance of staying ahead of workplace risks with insights into Employment Practices Liability Insurance (EPLI) and why having a policy could be right for you.
Understand the importance of staying ahead of workplace risks with insights into Employment Practices Liability Insurance (EPLI) and why having a policy could be right for you.
Employment Practices Liability Insurance (EPLI) is a type of liability insurance covering wrongful acts arising from the employment process. Claims often include harassment, discrimination, and wrongful termination. However, there are many other scenarios where EPLI may come into play; to name a few:
The modern workplace is becoming increasingly complex due to evolving laws and diverse workforces. Even when employers strive to follow best practices, disputes can still arise, oftentimes leading to costly legal battles. Having an EPLI policy can provide coverage for legal defense costs and demonstrate an employer’s commitment to fostering a fair and compliant work environment.
As the EPLI landscape constantly evolves alongside the changes in our society and legislation, there are some key new trends to keep an eye on.
One recent trend are claims alleging violation of the Pregnant Workers Fairness Act, which went into effect June 18, 2024. According to the U.S. Equal Employment Opportunity Commission, this law requires “a covered employer to provide a ‘reasonable accommodation’ to a qualified employee’s or applicant’s known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an ‘undue hardship.’” As the law is still fairly new, this will be the emerging trend to watch in the following years.
Another trend is litigation related to AI bias in hiring. The Equal Employment Opportunity Commission (EEOC) recently settled a case where hiring software was alleged to have committed age discrimination by systematically eliminating female candidates over 55 and male candidates over 60.
Staying alert of EPLI trends allows employers to ensure they are in compliance with evolving regulations, reducing the risk of costly lawsuits.
If your business has employees, you have an EPLI exposure. Consider this:
An EPLI policy is a cost-effective way to transfer this risk and protect your business.
The cost of an EPLI policy varies depending on the number of employees, the type of business, and prior claims history. Implementing comprehensive employment policies and procedures paired with an EPLI policy is the most effective way to protect your employees and your business from these types of situations. HR policies, procedures, and training programs should be reviewed at least annually to address constantly evolving employment laws and regulations.
Our team at The Miller Group is here to help explore EPLI policy options tailored to your business’s needs. To get started, contact one of our risk experts.
Are You at Risk? To better understand the level of risk your business faces on a daily basis, utilize our free Employment Practices Liability Insurance Scorecard.
