Recent developments in employment legislation have reshaped the risk landscape for employers – increasing both complexity and exposure. Despite this, the Employment Practices Liability (EPL) insurance market is beginning to soften, creating improved risk transfer opportunities for buyers.
The EPL insurance market has historically been unfavourable for buyers due to limited capacity, significant retentions, and high premiums. During the challenging financial lines market of 2019-2021, many clients chose to non-renew or could not procure this type of coverage without limitations or onerous premiums/retentions. Instead, many opted to only cover their US exposure in the domestic market.
However, as the financial lines insurance market has become more competitive, UK insurers are increasingly expanding their capabilities in this area, creating more favourable conditions for global clients.
This occurs as employment legislation is changing, bringing the potential for more claims in future. The UK’s Employment Rights Act came into force in December 2025. Aimed at prioritising workers’ protections rights – often from day one – various provisions will come into force over the next two years.
At the same time, we are seeing an uptick in notifications across the EU. For example, this includes notifications related to the Working Time Directive, which comes with penalties that can be levied against insured persons personally – increasing the scope for employment related D&O...
A person in his 30s who demanded compensation for alleged foreign substances in cup noodles and the absence of meat in stir-fried pork was sentenced to prison in both the first trial and the appel...