QBE North America has dropped its 2025 Employment Practices Liability (EPL) Report, and the findings aren’t exactly comforting for HR and legal leaders. Despite years of training, compliance investments, and cultural initiatives, employment-related claims remain stubbornly high—and may be about to climb even further.
Based on a survey of 200 senior HR and legal professionals from companies generating between $500 million and $5 billion in annual revenue, the report highlights how hybrid work, new regulations, and AI adoption are reshaping risk profiles for employers.
Key Findings
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Claims are sticking around. In the past 12 months, 69% of respondents said their organization faced employee claims involving discrimination, harassment, retaliation, or other workplace issues. Nearly half (42%) expect claim frequency to increase over the next year.
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The cost is more than financial. While 63% cited financial losses as the top consequence of employment-related litigation, many also pointed to reputational damage, lower morale, and productivity hits.
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Training gaps emerge around AI and privacy. Respondents said the biggest areas where education must be strengthened are: HR use of AI (54%), employee data privacy (47%), and harassment/discrimination prevention (47%).
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EPL insurance adapts to new realities. Among companies with EPL coverage, 60% plan to adjust deductibles or premiums, 57% will update coverage to reflect new laws, and 51% expect to add protections against specific risks.
“As hybrid work arrangements, regulations, and technologies like artificial intelligence continue to evolve, employers must balance workplace progress with protection,” said Mary Anne Mullin, SVP and EPL & Fiduciary Product Leader at QBE North America.
The Bigger Picture
The data paints a picture of employers caught in the middle of change. Hybrid workplaces have blurred lines of responsibility and oversight. AI in recruiting and performance management brings efficiency but also fresh bias and privacy concerns. Regulators, meanwhile, are tightening requirements—leaving companies scrambling to keep up.
“Employers are being tested in new ways as exposures increase,” added Eden Stark, VP of Financial Lines Claims at QBE. “Organizations should review their employment practices and risk management strategies to address new and emerging risks.”
Why It Matters
Employment litigation has always been expensive, but in 2025 the stakes are higher. Reputational fallout from a discrimination lawsuit can spread instantly through social media. AI-driven hiring tools could open the door to claims if bias isn’t carefully monitored. And as QBE’s data shows, executives know that gaps in training and governance are leaving them exposed.
The Takeaway
QBE’s report is a reminder that employment practices liability is no longer a niche insurance product—it’s a frontline business issue. For HR leaders, that means ensuring compliance isn’t just a box-checking exercise. For CFOs, it means budgeting for both coverage and prevention. And for everyone else, it signals that the intersection of people, tech, and law is only getting more complex.
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