From the Podcast Studio: Insights on the Evolving Insurance Landscape for Manufacturers

Written by Katie Hensley, Sales Executive - Risk Management

I recently had the opportunity to join Leisa Fox on the Iowa Manufacturing Podcast to discuss the future of insurance for manufacturers. While I'll admit I was a bit nervous beforehand, I'm grateful for the chance to share what we're seeing in the market and how it impacts the clients we serve.

The property and casualty insurance landscape is shifting rapidly. Between nuclear verdicts, emerging cyber threats, and dramatic property market changes, manufacturers are navigating more complexity than ever before. But here's what I know from working with our clients: with the right partnership and proactive approach, these challenges become manageable.

What We Covered

The Property Market: Lessons from the Hard Market We Can't Afford to Forget

The property market experienced dramatic hardening over the past few years—capacity shrank, rates spiked, and underwriting scrutiny intensified. Now, we're seeing signs of rapid softening, which is welcome news for our clients.

However, this transition presents an important opportunity. The disciplines we developed during the hard market aren't just temporary measures - they're best practices that should remain standard regardless of market conditions:

• Closing out open carrier recommendations promptly

  
  

• Maintaining accurate property valuations

  
  

• Staying proactive with loss prevention strategies

These practices build resilience, not just compliance.

Social Inflation and Nuclear Verdicts

We discussed the growing impact of social inflation and those headline-grabbing nuclear verdicts that are reshaping liability exposures. General liability markets are showing warning signs similar to what we witnessed in commercial auto insurance. Understanding these trends helps our clients prepare rather than react.

Cyber Insurance: Affordable Now, Critical Always

Cyber insurance remains reasonably priced, but carriers are monitoring the landscape closely. One breach can fundamentally change a company's risk profile and insurance costs. The key is helping clients stay ahead of vulnerabilities through strong security protocols and regular assessments.

Management Liability: Policies Are Only as Strong as Your Practices

From Directors & Officers (D&O) to Employment Practices Liability (EPL), insurance policies are only as effective as the operational practices behind them. This means maintaining updated employee handbooks, ensuring clear communication, and enforcing policies consistently. It's not the most exciting conversation, but it's absolutely essential to meaningful risk management.

Our Approach: Building Resilience, Not Just Buying Policies

What I emphasized throughout the podcast is what makes our approach different at Cottingham & Butler: we don't just sell insurance policies - we partner with clients to build organizational resilience. Understanding what's happening in the broader market and within the specific industries we serve allows us to show up as true strategic partners.

The insurance landscape will continue to evolve, but our commitment to proactive, informed risk management remains constant.

To listen to the full episode of the Iowa Manufacturing Podcast, click here!

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Katie Hensley Sales Executive - Risk Manangment khensley@cottinghambutler.com