Rising litigation costs for employers have also contributed to the demand.
The global employer’s liability insurance market is projected to grow steadily over the next few years, rising from $31.51b in 2024 to $33.90b in 2025, with a compound annual growth rate (CAGR) of 7.6%, according to The Business Research Company.
The market’s growth in recent years has been driven by an increase in workplace injuries, greater awareness of legal responsibilities, more worker compensation claims, and the expansion of industrial workforces.
Rising litigation costs for employers have also contributed to the demand for coverage.
Looking ahead, the market is expected to reach $44.82b by 2029, growing at a CAGR of 7.2%.
This growth will likely be supported by higher demand for liability coverage related to remote work, more employee mental health claims, and new risks linked to workplace automation.
Stricter regulatory oversight and the need for protection against pandemic-related liabilities are also expected to fuel demand.
Key trends shaping the sector include digital claim processing, AI-based risk assessment tools, telehealth integration, flexible liability policies, and predictive analytics for claims prevention.
According to the report, North America led the market in 2024, whilst Asia-Pacific is expected to record the fastest growth in the coming years.