Employment-related risks remain a pressing issue for US employers, according to QBE North America’s newly released Employment Practices Liability (EPL) Report.
The report warned that organizations are facing heightened risks as workplace environments evolve with hybrid work, regulatory changes, and emerging technologies, such as artificial intelligence.
The survey, which polled 200 legal and HR professionals at companies with annual revenue between $500 million and $5 billion, found that employment-related claims remain a persistent challenge. Over the past 12 months, 69% of respondents said their organizations had faced claims from employees alleging issues such as discrimination, harassment or retaliation. Looking ahead, 42% expect the frequency of such claims to rise in the coming year.
Financial exposure remains the primary concern tied to these claims. Nearly two-thirds of respondents (63%) pointed to direct costs as the most significant consequence of litigation. However, many also cited reputational harm, weakened employee morale, and productivity loss as additional risks that can create lasting damage beyond the financial bottom line.
The report also highlighted that education and training may be underutilized in mitigating exposures. Respondents identified three areas in particular where they believe efforts should be strengthened -- managing the use of AI in HR functions (545), protecting employee data privacy (47%), and addressing harassment and discrimination (47%). QBE said these results reflect how emerging technologies and ongoing workplace challenges are creating new risk areas that employers must be prepared to address.
Insurance strategies are also shifting in response. Among organizations with EPL coverage, 60% indicated they plan to adjust deductibles or premiums in the next 12 months, while 57% expect to update coverage to reflect new legal requirements. Just over half (51%) plan to add coverage for specific exposures.
QBE’s findings come against a backdrop of persistent employment litigation in the US. According to federal data, thousands of discrimination and retaliation charges are filed annually with the Equal Employment Opportunity Commission, and class-action settlements involving workplace practices regularly result in multimillion-dollar payouts. Industry analysts note that even as reforms in some states aim to curb litigation, the trend line points toward rising exposure, particularly in areas involving technology, privacy, and workplace culture.
