Employers Liability Insurance Market Report 2025

The employer's liability insurance market size has grown strongly in recent years. It will grow from $31.51 billion in 2024 to $33.9 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. During the historic period, growth was driven by the increase in workplace injuries, heightened awareness of legal responsibilities, a surge in employee compensation claims, expanding industrialization and workforce numbers, and rising litigation costs for employers.

The employer's liability insurance market size is expected to see strong growth in the next few years. It will grow to $44.82 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. In the forecast period, growth is expected to be fueled by the rising demand for remote work liability coverage, greater emphasis on employee mental health claims, an increase in risks associated with workplace automation, heightened regulatory scrutiny of employer practices, and a growing need for pandemic-related liability protection. Key trends anticipated during the forecast period include advancements in digital claim processing, the creation of AI-powered risk assessment tools, innovations in telehealth integration, the introduction of customizable liability policies, and the advancement of predictive analytics for claim prevention.

The rise in workplace accidents is expected to drive the growth of the employers’ liability insurance market in the coming years. Workplace accidents are unforeseen incidents that occur during work activities, causing injury, illness, or harm to employees. These incidents are increasing due to inadequate safety training, leaving many employees unprepared to operate machinery or handle hazardous situations. Employers’ liability insurance provides protection to employers by covering legal expenses and compensation claims resulting from workplace accidents or employee injuries. For example, in November 2024, according to Eurostat, a Luxembourg-based statistical office of the European Union, the EU recorded approximately 2.97 million non-fatal workplace accidents in 2022, reflecting a 3% increase from the 2.88 million reported in 2021, representing 87,139 additional incidents. This increase in workplace accidents is contributing to the growth of the employers’ liability insurance market.

Major companies in the employers’ liability insurance market are introducing innovative solutions, such as employment practices liability insurance, to address growing risks related to workplace harassment, discrimination, and wrongful termination claims. Employment practices liability insurance is a policy designed to protect employers from claims made by employees involving workplace issues such as discrimination, harassment, wrongful termination, or retaliation. For instance, in December 2022, NEXT Insurance, a US-based online insurance provider, launched employment practices liability insurance (EPLI) specifically for restaurants, offering protection against workplace-related lawsuits, including discrimination, sexual harassment, wrongful termination, and ADA compliance. This coverage is included in their Pro and Pro+ insurance packages, with coverage amounts of $25,000 and $50,000, respectively. NEXT Insurance also expanded its general liability coverage by offering commercial umbrella or excess liability coverage in 41 states and extending liquor liability coverage to seven additional states, providing enhanced protection for small businesses in the restaurant industry against a range of business risks.

In July 2022, Liberty Mutual Insurance Company, a US-based insurance provider, acquired AmGeneral Insurance Berhad for an undisclosed amount. This acquisition allows Liberty Mutual to combine its global expertise with AmGeneral’s strong local presence to establish Malaysia’s largest auto insurer and a leading general insurance provider. AmGeneral Insurance Berhad is a Malaysia-based company that offers general insurance services, including employers’ liability insurance.

Major players in the employers liability insurance market are Berkshire Hathaway Inc., Allianz SE, American International Group Inc., Liberty Mutual Holding Company Inc., Swiss Re Ltd., Zurich Insurance Group Ltd., Chubb Limited, The Travelers Companies Inc., The Hartford Financial Services Group Inc., QBE Insurance Group Limited, CNA Financial Corporation, Markel Corporation, W. R. Berkley Corporation, Starr International Company Inc., AmTrust Financial Services Inc., Hiscox Ltd., Bolttech Insurance Company Limited, Blue Cross Blue Shield Association, MedGulf Insurance & Reinsurance Company B.S.C., MSIG Insurance Pte. Ltd., and Assicurazioni Generali S.p.A.

North America was the largest region in the employers liability insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in employers liability insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the employers liability insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Employers’ liability insurance is a specialized form of coverage that safeguards employers against the financial impact of legal claims filed by employees who experience injuries or illnesses arising from and during the course of their employment. This insurance covers expenses related to defending the employer in court, along with any compensation awarded to the employee for workplace accidents or occupational diseases not included under standard workers' compensation policies.

The primary types of coverage under employers’ liability insurance include standard coverage, enhanced coverage, excess liability coverage, and specialized coverage for high-risk operations. Standard coverage provides the basic protection offered in an insurance policy, addressing common and anticipated risks unless additional coverage is specifically purchased. It applies to various categories of employees, such as full-time, part-time, temporary or contract workers, remote employees, and accommodates businesses of different sizes, including small businesses, medium-sized enterprises, and large corporations. These policies are distributed through brokers, direct sales, online platforms, and other channels, serving a range of industries such as manufacturing, construction, healthcare, retail, technology, hospitality, transportation, and logistics.

The employers liability insurance market research report is one of a series of new reports that provides employers liability insurance market statistics, including employers liability insurance industry global market size, regional shares, competitors with a employers liability insurance market share, detailed employers liability insurance market segments, market trends and opportunities, and any further data you may need to thrive in the employers liability insurance industry. This employers liability insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The employers liability insurance market includes revenues earned by entities by providing services such as coverage for employee injury or illness claims, legal expense reimbursement, workplace risk assessment, policy underwriting, and compliance support services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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