The employment practices liability (EPL) insurance market is evolving. Over the last decade, claims have climbed steadily, beginning with heightened societal awareness around workplace conduct in 2017, which sparked a wave of harassment and discrimination claims.

More recently, the landscape has shifted again, with significant increases in retaliation claims and charges related to protected identity characteristics. Insurance settlement amounts have also risen meaningfully alongside claim volume.

With no indication that EPL claims will return to their previous levels, understanding these evolving patterns — and the risk transfer solutions available through insurance — positions organizations to respond strategically.

Shifting workplace dynamics and lasting impact

A significant cultural shift in 2017 marked a turning point for workplace harassment and discrimination claims. The numbers tell a compelling story: “In the years immediately following 2017, sexual harassment claims filed with the U.S. Equal Employment Opportunity Commission (EEOC) jumped from 6,686 claims in 2017 to 7,609 in 2018 and 7,514 in 2019, which was a 12% increase over 2017. The EEOC reports that between 2018 and 2021, it received a total of 98,411 charges alleging harassment on any basis and 27,291 charges alleging sexual harassment.”1

This heightened awareness of workplace misconduct has transformed the landscape, prompting insurers to develop more comprehensive EPL coverage and sophisticated risk management tools that better protect organizations against these evolving claims.

Insurers now provide policyholders with complimentary risk management services, including 24/7 helplines for immediate guidance, harassment and ethics training courses for all employees and technology-based executive risk assessments that identify specific exposures — transforming EPL coverage from reactive claims defense into proactive workplace risk prevention.

The pandemic effect and new trends

When COVID-19 forced millions of employees to work remotely in 2020, harassment claim numbers temporarily declined. However, this pause did not signal a long-term reversal. As organizations began mandating returns to the office, a new wave of claims emerged reflecting a broader range of workplace discrimination concerns. Employees across all sectors felt increasingly empowered to raise concerns about discrimination of all types.

The data reflects this shift dramatically: “In fiscal year (FY) 2023, the EEOC received more than 3,000 charges alleging discrimination based on sexual orientation or gender identity, the most since the agency started tracking these charges in FY 2013, and up more than 36% from the previous year.”2

This trend underscores a reality employers can no longer ignore. Employment liability is not static, and the organizations responding most effectively are adapting their risk management strategies in step with shifts in the legal and cultural landscape.

Retaliation claims have emerged as an equally notable trend, often going hand in hand with discrimination allegations. When employees report concerns against their employers, many experience adverse consequences rather than protection. This dynamic has fueled a marked increase in retaliation charges. In fact, more than 56% of the EEOC’s 81,055 charges in FY 2023 allege retaliation and reached the highest number in more than 30 years.

While retaliation claims decreased slightly to 42,301 charges in FY 2024, they remained the most prevalent filing for the 17th consecutive year, representing 47.8% of the record 88,531 total discrimination charges filed.3 Unlike harassment claims, which tend to be more narrowly defined, retaliation encompasses a broader range of circumstances. Despite the recent dip, the long-term trajectory and the relative ease of establishing these claims suggest that retaliation will remain a primary focus for employers.

Rising settlement costs

The financial impact of these claims has led insurance companies to pay out significantly more than in previous years. A key factor driving these increased costs is the expanding range of employees bringing claims across all levels of organizations.

Beyond the plaintiff’s salary, social and economic inflation continues to drive up both defense costs and settlements. Major EPL insurers are seeing single-plaintiff lawsuits routinely result in seven-figure settlements during pre-litigation and confidential mediation, driven both by plaintiffs’ high wages and organizations’ desire to settle quickly and avoid negative publicity.

A high-profile example: Activision Blizzard

The scale of EPL claims is illustrated by the case against video game giant Activision Blizzard, the company behind popular franchises including Call of Duty, World of Warcraft and Candy Crush. In 2016, employees brought forward allegations of harassment, discrimination, violations of the Pregnancy Discrimination Act, retaliation and wrongful termination.

The EEOC’s subsequent investigation expanded across multiple state locations, with additional allegations uncovered during the process. The eventual result? An $18 million settlement — a clear illustration of the financial scope these matters can reach.

The EPL insurance landscape has fundamentally transformed over the past decade, driven by shifting social and workplace dynamics that show no signs of reversal. From the evolving awareness of workplace misconduct to the surge in discrimination and retaliation claims, employers are operating in a more complex employment litigation environment than ever before.

The involvement of employees at all organizational levels in these claims, coupled with organizations’ preference for swift, confidential settlements to avoid negative publicity, has pushed settlement amounts into seven-figure territory with increasing frequency. As high-profile cases like Activision Blizzard’s $18 million payout demonstrate, the financial scope of these matters has grown significantly.

Position your organization with proactive EPL coverage

Organizations taking a proactive stance are best positioned to navigate this evolving landscape. Proactive risk management, extensive training programs, robust anti-discrimination policies and adequate insurance coverage are core components of any sound business strategy.

The forward-thinking organizations investing in these strategies today are building the resilience to respond confidently as claims trends evolve. Organization leaders can work with their advisor to evaluate EPL insurance options that may provide a defense and coverage for settlements arising from alleged EPL wrongful acts and identify the right coverage limits for their level of risk. This coverage provides meaningful financial protection against defense costs and settlements as the legal landscape continues to evolve.

With the right combination of prevention and protection, comprehensive EPL coverage shields organizations from the full spectrum of employment-related claims, including discrimination, harassment, retaliation and wrongful termination.

For more insights into EPL strategies, contact a HUB ProEx Specialist today. View more articles in HUB’s ProEx Advocate Articles & Insights Directory.

1 U.S. Equal Employment Opportunity Commission, “Sexual Harassment in Our Nation’s Workplaces,” accessed May 19, 2026.
2 EEOC, “2023 Annual Performance Report,” accessed May 19, 2026.
3 Center for Workplace Compliance, “FY 2024 EEOC Enforcement Stats Show Increase In Filings, With Retaliation Claims Most Prevalent,” March 31, 2025.