The Top Risks Facing Your Business in 2026 - And What You Can Do About Them

As we look ahead to 2026, the risk landscape continues to shift in ways that demand attention from business leaders across every industry. Recent insights from Insurance Business Magazine, and other industry experts highlight several critical exposures that could impact your operations, your bottom line, and your ability to recover from unexpected events.

At Cottingham & Butler, we're helping clients navigate these emerging challenges with proactive risk management strategies and tailored insurance solutions. Here's what's on our radar—and what should be on yours.

Climate Risk Isn't Slowing Down

Natural catastrophes are becoming more frequent, more severe, and more expensive. In 2025 alone, the U.S. experienced over 30 billion-dollar weather events—from flash flooding to extended wildfire seasons. For businesses in transportation, hospitality, and beyond, this means reconsidering traditional property coverage assumptions.

Now is the time to review your property limits, explore specialized endorsements for flood and wildfire exposure, and stress-test your business continuity plans. Is your coverage keeping pace with replacement costs? Do you have a plan to keep operations running if your facilities are temporarily inaccessible?

Cyber Threats Are More Sophisticated Than Ever

Cyberattacks aren't just growing in number—they're growing in complexity. Cloud service outages in 2025 created ripple effects across entire supply chains, and generative AI is now being weaponized to create highly convincing phishing campaigns and system breaches.

Basic cybersecurity measures are no longer enough. Your cyber insurance policy should address first-party losses, third-party liability, regulatory fines, ransomware demands, and reputational harm. If you haven't reviewed your cyber coverage recently, now's the time.

Supply Chain Vulnerabilities Persist

Whether it's climate-related disruptions, geopolitical instability, or vendor failures, supply chain fragility remains a top concern. Insurers are paying closer attention to contingent business interruption (CBI) exposures—and so should you.

Ask yourself: Where are your critical vendors located? How quickly can you pivot to alternative suppliers? Does your insurance program provide adequate coverage for supply-chain-related losses? These aren't hypothetical questions—they're essential planning considerations.

New Liability Exposures Are Emerging

Liability risks are evolving, and 2026 brings heightened focus on environmental and regulatory issues. One area gaining traction is PFAS liability—so-called "forever chemicals." As states implement stricter environmental regulations, businesses in manufacturing, agriculture, hospitality, and other sectors may face lawsuits and cleanup obligations.

Now is the time to reevaluate your Directors & Officers (D&O), environmental, and pollution liability coverage to ensure you're protected against these emerging exposures.

What This Means for Your Business

The risk environment isn't just changing—it's accelerating. Waiting until renewal time to address these exposures could leave your organization vulnerable. The businesses that will thrive in 2026 are the ones taking action today.

Ready to Get Ahead of These Risks?

Cottingham & Butler specializes in helping businesses across transportation, hospitality, manufacturing, and beyond build resilient risk management programs. Our team can conduct a comprehensive review of your current coverage, identify gaps, and recommend solutions tailored to your industry and operations.

Let's start the conversation. Contact your Cottingham & Butler representative today to schedule a risk review.