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Written by: Cole Skelton, Sales Executive - Employee Benefits Minnesota Paid Family Leave is coming in 2026 – and represents a significant shift that could ripple through your business. Here Are The Minnesota PFL Basics Eligibility Virtually every worker in Minnesota is covered  – full-time, part-time, seasonal, and temporary employees. Coverage begins day one of employment  – with job protection kicking in after 90 days. To qualify employees must have made $3,781 in the previous year  (5.3% of state avg income). Benefit Up to 20 weeks of job-protected leave  per year (12 for medical/12 for family). Income replacement starts at 90% for lower income earners   and will continue to decrease as income does. The maximum benefit is capped at $1,372 a week. Leave can be taken for an employee’s own health needs as well as those of their family . Premium 0.88% of total wages, split 50/50 between employer and employee  (employers can choose to pay more). Premiums apply to 100% of taxable earnings , not just their base salary. Business Risks 1. Financial Exposure For a company with 100 employees earning Minnesota’s avg salary ≈ $67,000, a state PFL plan will cost about $29,480  assuming the company picks up 50% of the premium. Total expenses will depend on plan type – state or private. If there is not currently an employer funded short-term disability plan, this will be a new line item. With the maximum benefit being $1,372 per week – that’s 23% income replacement for an individual making $300,000 in a year. Additional short-term disability insurance may be required to properly insure high-income earners or those employees outside Minnesota. 2. Operational Gaps Key employees having access to prolonged and intermittent leave will become a reality – whether it’s your CNC machinist, lead project manager, or frontline worker. Having proper backup plans for key employees being out will be critical to ensure operational continuity. Do you have an up-to-date succession plan for key personnel? Do opportunities exist to cross-train employees? Are your time-off policies ready for intermittent leave for things like doctor visits? 3. Public vs. Private Options State Plan: Likely will be the cheapest, but it’s year one – expect growing pains. Private Plan: Potentially smoother administration, and a more intuitive employer/employee experience – at a premium. A private plan does present an opportunity to bundle on other non-medical insurance lines and save. Key Next Steps: Start internal conversations with HR, finance, and operations now. Audit current disability insurance coverages to identify what will overlap with MN PFL and what, if any, gaps are present for high-income earners. Run a cost/benefit analysis between a state or private plan. Map out strategy for intermittent leave, including backup staffing and cross-training. Build a Q3/Q4 implementation roadmap to ensure all systems and procedures are ready for 2026. With 2026 fast approaching, now is the time to get ahead of the curve and prepare your team, policies, and workforce for the changes ahead. Interested in learning more? Contact Us! Cole Skelton CSkelton@cottinghambutler.com 319.936.3463

Written by: Emily Vorpahl, Sales Executive - Employee Benefits In today’s competitive labor market, employers are under more pressure than ever to offer benefits that not only protect employees but also engage them, simplify administration, and deliver measurable value. At Cottingham & Butler, we’ve built a unique Engagement Team that brings together technology, communications, and non-medical expertise to create a seamless experience for employers and employees alike - one that enhances understanding, increases efficiency, and ensures every benefit delivers value. Three Teams, One Seamless Experience While each team brings its own expertise, they operate with one shared mission: to help employers attract and retain employees by protecting their financial well-being through market-leading benefits, communication, and technology. Together, they work in lockstep to guide employers from initial strategy and implementation to long-term execution and ongoing support. Maximize Value: Non-Medical Team By negotiating with carriers and analyzing contract language in depth, our Non-Medical Team helps employers deliver high-value, cost-effective coverage across a range of offerings - including dental, vision, disability, life, accident, critical illness, hospital indemnity, and more. By digging into the details and uncovering gaps in coverage, our team helps employers save 25–30% while enhancing the benefits they provide. Employees also see the impact directly, saving 19–40% annually out of their paychecks. Educate Employees: Communication Team We know communication strategies aren’t one-size-fits-all. That’s why our Communication Team partners with employers to develop tailored approaches based on industry, demographics, location, and workforce size. Fro m open enrollment sites to flyers and posters, every piece of collateral is designed to be clear, engaging, and on-brand. This personalized approach drives measurable results and helps employees make more confident decisions: 91% of employees complete enrollment without HR assistance, enrollments in non-medical coverage increase by 5–10%, and enrollment in one benefit rises from 46% to 60% after targeted education efforts. Drive Efficiencies: Technology Team Our Technology Team helps employers simplify benefits administration by consulting on and implementing systems that reduce errors and improve efficiency. With experience across 30+ platforms - including ADP, Paycom, Employee Navigator, and more - our analysts provide hands-on support with data management, file feeds, and billing processes. On average, this saves clients over 30 hours per year, with some billing tasks reduced from hours to mere minutes. The Power of Alignment What makes our Engagement Team effective is the way these three groups operate as one. Through regular collaboration, shared insights, and a commitment to continuous improvement, we ensure every strategy is aligned from start to finish. It’s not about passing tasks from one team to the next - it’s about working together to deliver a unified experience that feels seamless to clients and their employees. Conclusion Whether it’s navigating complex carrier relationships, optimizing coverage, improving employee engagement, or untangling technology challenges, our Engagement Team solves problems before they become pain points. Interested in learning more? Contact us! Emily Vorpahl EVorpahl@cottinghambutler.com 608.467.0453 ext 2358

Building a truly effective safety culture goes far beyond compliance checklists and policy manuals - it requires a fundamental shift in how leaders approach trust, communication, and organizational learning. In our recent webinar, "Creating an Unstoppable Safety-First Culture," Safety Consultant Scott Christenson demonstrated how the most resilient organizations transform safety from a mandated requirement into a shared cultural strength. Drawing on proven best practices from industry and human psychology, this recorded session reveals that when people feel trusted, valued, and informed, they naturally embrace safety as a core value rather than an external obligation. Here are the four essential strategies that will help you cultivate a workplace where safety becomes second nature: Build genuine relationships with your team by trusting them through both successes and failures, creating a restorative culture that embraces humanity that focuses on learning rather than blame. Establish an open information environment that encourages real, raw dialogue while embracing and addressing bad news transparently when it occurs. Cultivate a deep understanding of core priorities by utilizing learning teams to explore all operational aspects and bridge the gap between "work-as-imagined" and "work-as-done." Develop realistic, fluid action plans by gathering insights from all organizational levels and celebrating milestones to maintain momentum and motivation. Click here for the presentation.

When a claim happens, insurance becomes a vital lifeline for your business. However, navigating complex claims can feel like an overwhelming maze of processes. Our dedicated claims advocacy team fights for your interests, driving quick resolutions that keep your operations running smoothly. Their meticulous attention to detail and unwavering commitment to fairness helps translate your policy coverage to your advantage, maximizing your settlement and safeguarding your financial health. Our approach delivers real results. In 2024 alone, our Claims Advocates team achieved over $9,025,065 in total savings and recoveries for our clients. "We are problem solvers when it comes to claims issues, and we get to have a direct and positive impact on our clients’ claims experiences.  That’s the best part.  Our clients are so appreciative and are very vocal about their appreciation.  It makes all of the effort worthwhile ." - Troy, Assistant VP Client Success Stories Our passionate advocacy for clients' interests creates relationships that extend far beyond individual claims. These success stories showcase how our dedicated service transforms satisfied customers into clients for life. 25% More Coverage: See How View Real Results: $160K Cargo Saved See Real Results: $196K Saved "I am not sure exactly what to say other than 'Thank You' many times. Cottingham & Butler was persistent through all of this. We were able to turn to you, and your team always found another way of looking at things. We are very grateful. It now opens the door for us to go back to [our customer] and collect our money without having to go through the lawsuit route. I am never going to forget this!" Discover more client stories at the link below!

Written by: Catherine Gebhardt, Sales Executive - Employee Benefits Minnesota Paid Family Medical Leave (MN PFML) is a game-changer  for employee benefits and workplace culture. With thoughtful planning and proactive communication, HR teams can turn this mandate into an opportunity to support employee well-being and strengthen organizational trust. Start Date : January 1, 2026, This ambitious initiative, designed to provide up to 20 weeks of paid, job-protected leave for eligible employees. For HR professionals, this marks a significant shift in how leave is managed, tracked, and communicated. Internal management, communication and continuing education are key to stay up to date on the latest changes. Here’s what you need to know to prepare your organization for Minnesota PFML: PFML benefits are designed to replace a higher percentage of income for lower-wage workers, with up to 90% wage replacement for the lowest earners. Wage replacement tapers down as annual wages increase.   Maximum weekly wage for 2026 = $1372   Weekly wage repayments cannot  exceed the state average weekly wage of $1,372. Meaning, no matter your pre-leave earnings, the maximum weekly wage replacement amount cannot exceed the state's average weekly wage. Average weekly wage calculations will be recalculated by the State of Minnesota on an annual basis and applied for the upcoming calendar year. Premiums and Contributions Starting January 1 st , 2026, employers and employees will share the cost of the program: Total premium rate: 0.88% of employee wages Employer minimum contribution: 50% (0.44%) Employers may choose to cover the full amount or a custom percentage as long as the minimum contribution of 50% is met.   Employer FML Contributions, under IRS Revenue Ruling 2025-04, are federally tax deductible as an ordinary and necessary business expense under excise taxes or wages, depending on the accounting classification of the employer. Plan Options for Employers Employers have three options to comply: State Plan  – Ideal for small businesses (2–20 Minnesota employees) with limited HR resources. Private Plan :  Insurance Carrier   Partner – Suitable for small to mid-sized companies (20–500 Minnesota employees) seeking additional administrative support, integrated leave management programs, and additional non-medical benefits. Private Plan : Self-Funded, Vendor Managed, Self-Managed – Available for larger employers (500+ Minnesota employees) with robust HR and legal teams. Larger employers are also choosing private plans through an insurance carrier partner due to the unpredictability, complexity and volume of claims, plan administration assistance, along with the ability to have an outsourced partner for their HR team. ** Each plan option must meet or exceed the benefits offered by the state plan. Private insurance carrier plans are responsible for plan filing, annual reporting, and compliance. Private plans also manage regulatory updates to ensure plan guidelines concur with the state plan. **   Small and mid-sized employers are leaning towards either the State Plan or Private Insurance Plan strategy. This will help to alleviate administration, leave management and legal compliance, with regards to issues which may arise when creating plan documents from scratch. HR’s Role in PFML Administration HR teams will be at the center of PFML implementation. Key responsibilities include: Tracking leave  (continuous, intermittent, or reduced/nonconforming schedule accommodations) including leave taken + remaining available balance Verify employee eligibility , including employee type (fulltime, part time, seasonal)  - Coordinating  with insurance carriers or the state plan Maintaining  employee benefits during leave Communication  of benefits eligibility and/or benefits termination timeline should the employee not return to work. Educating  employees on their rights and responsibilities. Newly hired employees must receive notice of MN PFML within 30 days of hire date Retain  documents including any notes regarding insufficient notice of initial leave request or extension of leave requests  Communicate  leave notice violations or issues to the Commissioner/State of MN PFML department   Whether working through the MN State Plan, a Private Insurance Carrier, or Self-Funding, communication with the MN State Insurance Commissioner and/or the State of MN PFML department will be required. Interested in learning more? Contact Us! Catherine Gebhardt CGebhardt@cottinghambutler.com (608) 467-5021 ext 2351

Written by Josh Surber, Sales Executive - Employee Benefits Healthcare costs are spiraling out of control, and traditional employer health plans are failing the very people they're meant to protect. With 55% of Americans relying on employer-sponsored health insurance ¹, we're facing a crisis that demands immediate attention and innovative solutions. The Problem: When Benefits Become Barriers Recent Kaiser reports project a 7% increase in employer-sponsored health insurance premiums - yet another painful reminder that our current system is unsustainable. But the real shock comes when you look at what employees are paying and what they can afford. ² According to the 25th Employer Health Benefits Survey ² : Here's where it gets worse. The average deductibles employees face is $1,735 for individual coverage and $3,900 for family coverage. Now consider this sobering reality ³ : We've created a system where employees pay thousands for insurance they literally cannot afford to use. The Devastating Consequences When employees do need care - and they must use it - the results are catastrophic: ⁴ ⁵ As an employee benefits broker working across industries, I witness this disconnect daily. Every employer I meet takes pride in their benefits package and genuinely cares about their employees' wellbeing. Yet we've collectively designed a system that's increasingly expensive to obtain and statistically impossible to afford when used. This backward approach demands a fundamental rethink. Strategic Solutions That Actually Work Fortunately, there are proven ways to restructure health benefits that incentivize healthy choices while making coverage truly affordable when needed. Focus on Chronic Condition Management While biometric screenings remain important, managing existing conditions delivers far greater impact. With 60% of American adults living with at least one chronic disease and 40% managing multiple conditions ⁶, targeted support programs show measurable results. The statistics are compelling: 80% of healthcare spend comes from members with chronic conditions ⁷. HealthCheck 360 shows that clients with an incentivized condition management program spend $2,500 less per member per year than clients that do not. Consider implementing: Condition-specific compliance programs Medication assistance programs Educational resources that help employees manage ongoing health rather than just detecting new problems Price Transparency with Shared Savings New programs incentivize employees to shop for planned procedures by sharing the savings when they choose cost-effective providers. Here's how it works: Sarah needs a knee replacement and discovers three options through her employer's price transparency program with her $3,000 deductible and 20% coinsurance. Result:  Sarah gets the same quality care while coming out $6,000 ahead. The plan saves money, and the employee wins big. Copay-Only Health Plans These streamlined plans eliminate the complexity of deductibles and coinsurance, replacing them with straightforward copayments. Coverage extends beyond basic preventive care to include generic medications, primary care visits, and essential services. Most importantly, variable copay tiers reward cost-effective healthcare decisions with lower out-of-pocket costs. This approach reduces financial complexity while aligning employee incentives with smart healthcare spending. A Call to Action We can no longer treat health insurance as just another expense to negotiate down by a few percentage points each year. It's time to view employee health benefits as a strategic program that requires careful consideration of structure, function, and cost-sharing. The current system is broken. Employees are paying more for coverage they can't afford to use, leading to financial ruin when they need care most. As employers, we have both the opportunity and the responsibility to do better. I challenge every employer reading this: if you won't restructure your health benefits for your business's bottom line, do it for your employees who simply can't afford the status quo anymore. The solutions exist. The question is whether we'll have the courage to implement them. Interested in learning more? Contact Us! Josh Surber JSurber@cottinghambutler.com 847.447.7010 ext 2104 References: Health Insurance Statistics & Facts 2025 - Forbes Advisor https://www.forbes.com/advisor/health-insurance/health-insurance-statistics-and-facts/ 25th Employer Health Benefits Survey - KFF https://www.kff.org/report-section/ehbs-2023-summary-of-findings/ Most Americans can't afford a $1,000 emergency expense - CBS News https://www.cbsnews.com/news/saving-money-emergency-expenses-2025/ The burden of medical debt in the United States - Peterson-KFF Health System Tracker https://www.healthsystemtracker.org/brief/the-burden-of-medical-debt-in-the-united-states/#Share%20and%20estimated%20number%20of%20adults%20with%20medical%20debt,%20by%20the%20amount%20of%20debt%20they%20owe,%202021 Medical Bankruptcies by Country 2025 - World Population Review https://worldpopulationreview.com/country-rankings/medical-bankruptcies-by-country Chronic Disease Prevalence in the US - CDC.gov https://www.cdc.gov/pcd/issues/2024/23_0267.htm

On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as th e One Big Beautiful Bill Act  (OBBB Act), into law. The OBBB Act includes changes for employers, including provisions that: Increase the maximum annual limit for dependent care flexible spending accounts (FSAs); Permanently extend the telehealth exception for high deductible health plans (HDHPs); Allow employee access to Direct Primary Care arrangements without causing a loss of HSA eligibility; Permanently allows employers to take a credit for their paid family and medical leave (PFML) expenditures; Allow employers to help pay employees’ student loans beyond 2025 and make cost-of-living adjustments to the tax exclusion for educational assistance programs; Allow employers to contribute up to $2,500 per year to a new type of tax-advantaged account for children, called Trump Accounts; and Allow certain workers an above-the-line deduction for “qualified overtime compensation.” The following provides a broad overview of employment-related provisions from the OBBB Act and corresponding action items for employers to review. These items are not meant to be comprehensive and cannot account for the entirety of the legislation.   One Big Beautiful Bill Act Increases Dependent Care FSA Limit Currently, the annual contribution limit for dependent care FSAs is $5,000 for single individuals and married couples filing jointly and $2,500 for married individuals filing separately. This limit has been in place since 1986 (except for a temporary increase during the COVID-19 pandemic). Effective Jan. 1, 2026, the OBBB Act increases the Dependent Care FSA limit to $7,500 for single individuals and married couples filing jointly and $3,750 for married individuals filing separately. This increase is optional for plans to adopt. Dependent Care FSA Limit Increase Action Items ✓ Assess how the increased limit may impact the plan’s annual nondiscrimination testing results, particularly the 55% average benefits test. ✓ Review the written plan document to determine if updates are necessary due to the increased limit. ✓ Communicate the new limit to employees as part of the open enrollment process. One Big Beautiful Bill Act Permanently Extended Pre-deductible Telehealth Coverage for HDHPs/HSAs The OBBB Act includes measures to expand the use of health savings accounts (HSAs). One of the new measures permanently extends the ability of HDHPs to provide benefits for telehealth and other remote care services before plan deductibles have been met without jeopardizing HSA eligibility. To be eligible for HSA contributions, individuals cannot be covered by a health plan that provides benefits, except preventive care benefits, before the minimum HDHP deductible is satisfied for the year. Historically, individuals who were covered by telehealth programs that provided free or reduced-cost medical benefits were not eligible for HSA contributions. However, in response to the COVID-19 pandemic, the U.S. Congress enacted legislation that temporarily allowed HDHPs to provide benefits for telehealth or other remote care services before plan deductibles were met. This exception for first-dollar telehealth services expired at the end of the 2024 plan year (i.e., Dec. 31, 2024, for calendar-year HDHPs). However, the   OBBB Act permanently extends this relief, retroactively effective for plan years beginning on or after Jan. 1, 2025. Due to the permanent extension, HDHPs may waive the deductible for any telehealth or other remote care services for plan years beginning in 2025 and beyond without causing participants to lose HSA eligibility. This provision is optional; HDHPs may still apply any telehealth services, other than preventive care, toward the deductible. First Dollar Telehealth Coverage Action Items ✓ Employers with HDHPs should review their health plan’s coverage of telehealth services to determine if changes should be made. ✓ Determine whether to make changes effective in 2025 or beginning in 2026. ✓ For changes made in 2025, communicate any changes to telehealth coverage to plan participants through updated plan materials or a Summary of Material Modifications. One Big Beautiful Bill Act Allows for Direct Primary Care Participation without a Loss of HSA Eligibility Direct Primary Care (DPC) arrangements are subscription-based health care models for delivering primary care to patients. Each patient pays a membership fee and may utilize various primary care services from a DPC provider.  Historically, it has been unclear how access to DPC services impacted an individual’s eligibility to contribute to an HSA.  In fact, most assumed that accessing DPC before meeting an insurance plan deductible rendered an individual ineligible to make HSA contributions.  Beginning in 2026, participation in DPC arrangements that meet the following criteria will not cause a loss of HSA eligibility: The DPC must be subject solely to a fixed monthly fee of no more than $150 for an individual and $300 for more than one individual (these amounts may increase annually for inflation); and The DPC must involve medical care provided by a primary care practitioner.  Procedures that require the use of general anesthesia, prescription drugs (other than vaccines) and lab services not typically provided in a primary care setting do not qualify as primary care. In addition, fees paid for such DPC arrangements will be treated as eligible medical expenses for purposes of HSA reimbursement. DPC Participation Action Items ✓ Employers who have encouraged DPC participation in the past will now be able to do so with confidence if also offering a High Deductible Health Plan with HSAs.   ✓ Employers should work with their benefits advisors to determine if the DPC arrangements meet the criteria and communicate accordingly to employees. One Big Beautiful Bill Act Expands and Makes Permanent Employer Tax Credit for PFML The OBBB Act affected a tax code provision that allows employers to take a credit for their paid family medical leave (PFML) expenditures. In brief, the OBBB Act makes the tax credit permanent and broadens its coverage to PFML insurance premiums and leave taken by newer employees than previously allowed, among other changes. The amendments apply to taxable years beginning after Dec. 31, 2025. The tax credit is only available to employers voluntarily providing at least two weeks of PFML at a rate that is at least 50% of the employee’s normal pay rate. The credit does not apply to PFML required by law, nor does it apply to vacation leave, personal leave or sick leave. PFML Tax Credit Action Items Employers that voluntarily provide PFML should review their leave policies and speak with their tax advisor to determine whether they qualify for this potentially valuable tax credit. One Big Beautiful Bill Act Makes Student Loan Repayment Benefit Permanent Since 2020, employers that offer educational assistance programs have been able to use them to help pay for their employees’ student loans. While educational assistance programs have been available for many years to pay expenses such as books, equipment, supplies, fees and tuition, the option to use them to pay for student loans was set to expire on Dec. 31, 2025. However, the OBBB Act permanently extends this student loan provision. In most cases, educational benefits are excluded from federal income tax withholding, Social Security tax, Medicare tax and federal employment (or FUTA) tax. Under current law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year, and assistance provided above this level is typically taxable as wages. Effective for taxable years beginning after 2026, the OBBB Act provides for annual inflation adjustments to the $5,250 limit. Student Loan Repayment Benefit Action Items ✓ Employers may continue to use educational assistance programs to pay principal and interest on an employee’s qualified education loans.  Payments made directly to the lender, as well as those made to the employee, may qualify.  ✓ Communicate the new limit to employees as part of the open enrollment process. One Big Beautiful Bill Act Creates New Tax-favored Accounts for Children The OBBB Act creates a new type of federal tax-favored account for children, called Trump Accounts, effective for tax years beginning in 2026.   Employers that establish a Trump Account Contribution Program can contribute up to $2,500 per year on a tax-free basis to the Trump Accounts of employees’ dependents (or teenage employees).  This program must be established pursuant to a written plan document and must meet certain tax rules that apply to dependent care assistance programs. Key features of Trump Accounts include the following: Children born in 2025-28 may be eligible to receive a special $1,000 contribution from the federal government; Annual contributions are generally limited to $5,000 and may only be made beginning 12 months after the OBBB Act’s enactment (i.e., July 4, 2026) and only until the child reaches age 18; The accounts are treated similarly to traditional individual retirement accounts for tax purposes, although taxpayers’ contributions are not tax deductible; and Withdrawals are only permitted after the account beneficiary reaches age 18. Trump Account Action Items ✓ The IRS is expected to issue guidance on Trump Accounts in the future, which should address eligibility criteria, plan document requirements, implementation timelines and administration details.    ✓ Employers should consider whether implementing a Trump Account will be beneficial and cost-effective.  Those interested should watch for further guidance from the IRS. One Big Beautiful Bill Act Temporarily Eliminates Taxes on Overtime Compensation The OBBB Act will allow certain workers an above-the-line deduction for “qualified overtime compensation” for taxable years beginning after Dec. 31, 2024, and ending for taxable years beginning after Dec. 31, 2028.  Section 70202 of the OBBB Act establishes a new above-the-line tax deduction for qualified overtime compensation.   The OBBB Act defines “qualified overtime compensation” as overtime compensation paid to an individual required under Section 7 of the Fair Labor Standards Act that is in excess of the regular rate at which the individual is paid. The maximum deduction for overtime income is capped at $12,500 per year ($25,000 per year if married filing jointly). The deduction decreases for those earning over $150,000 per year. Employers must include the total amount of qualified overtime compensation as a separate line item on employees’ Form W-2. Individuals must include their Social Security number (and, if married and filing jointly, their spouse’s Social Security number) on their tax return to receive the deduction. Overtime Compensation Action Items ✓ Employers should work with their payroll provider and tax advisor to adjust their payroll systems to accurately tract and reporting overtime compensation on employees’ Forms W-2. Many of these new provisions provide additional opportunities for employers to engage their employees and provide more meaningful employee benefits. We encourage you to contact your Cottingham & Butler team member today to learn more about how these changes may affect your benefit offerings.

The Situation Midwest-based real estate company faced a massive renewal of 37% from its current medical insurance carrier. With limited alternatives initially presented to them by their benefits broker, they decided to explore the market and see their options to avoid a $200,000 increase in costs. Key Wins Why They Needed Change Substantial Premium Increase: An unanticipated 37% increase in medical premiums threatened financial stability for the organization. Limited Alternatives: Plan design alternatives and solely going to the incumbent to negotiate weren’t going to cut it for this renewal. Multiple options and a more thorough marketing process were needed. Minimize Employee Impact: The company didn’t want to pass on a significant cost burden to employees and hurt their retention efforts. Options that would keep employee benefits competitive while reducing company costs were necessary Overall, by engaging with Cottingham & Butler, the group was able to craft a more affordable, simplified, and competitive suite of benefits for all parties involved.

Our recent webinar on preparing for International Roadcheck 2025 provided motor carriers and drivers with essential strategies to navigate this annual enforcement event successfully. Unlike typical roadside inspections, International Roadcheck gives the industry advanced notice about timing and focus areas, allowing companies to prepare adequately. The session highlighted 5 critical takeaways for fleets: Prepare now for International Roadcheck 2025 to avoid violations and CVSA/SMS points. Conduct thorough equipment inspections before official roadside safety checks. Focus on the 2025 priority areas: Tire condition and Log accuracy. Train drivers to perform comprehensive pre-trip inspections as your first defense. Plan routes with potential Roadcheck delays in mind. Click here to view the presentation.

ClaimSMART Success Story When your work involves molten metal and heavy machinery, getting claims management wrong isn't just costly – it's dangerous. This was the challenge facing a prominent foundry when they first crossed paths with our risk management team. Critical Exposures Identified A detailed review of the foundry's workers' compensation program exposed significant vulnerabilities threatening their bottom line, including rising claim costs, a deteriorating MOD, and medical expenses that exceeded industry standards. Their existing approach to risk management was falling short, leaving them exposed to unnecessary financial burden. Our analysis revealed several critical deficiencies: An Experience Modification Factor (MOD) trending in the wrong direction directly impacting insurance costs Workers' compensation claims lacking proper oversight, leading to unnecessary claim escalation Medical costs running 20% above industry benchmarks with no controls in place Inconsistent investigation procedures resulting in misclassified claims Siloed disability management programs creating costly redundancies and gaps in coverage The ClaimSMART Solution The Cottingham & Butler team deployed ClaimSMART as an entry point for analysis of the foundry's risk profile. The initial assessment uncovered opportunities that demanded a deeper dive into their workers' compensation program and MOD structure. Concrete strategies to optimize their MOD First fill prescription programs that reduced initial claim costs and improved employee care Sophisticated investigation protocols that ensured accurate claim classification Strategic integration of FMLA and short-term disability programs to prevent claim leakage Precise guidelines for differentiating between occupational and non-occupational injuries The program's workers' compensation expertise proved invaluable in an environment where each claim classification decision carried substantial financial weight. Elevate Your Claims Management ClaimSMART delivers best-in-class claims management through comprehensive Workers' Compensation and Property & Casualty Assessments, backed by our Best Practices Training Series. Our evaluations identify your organization's strengths and opportunities to help reduce overall insurance costs. Let’s Chat! Contact Cottingham & Butler at 800.793.5235 to schedule your ClaimSMART assessment and receive a customized strategy for enhancing your claims program. WA N T T O L E A R N M O R E ? www.CottinghamButler.com/claimsmanagement

Part of risk management is preparing for unforeseen security threats and disasters. Though such situations may seem unlikely or difficult to imagine, these threats could lead to catastrophic consequences for your business. Criminal behavior, including vandalism or theft, presents a more tangible risk, but you also need to consider the risks of natural disasters or terrorism threats in your community. These threats are even greater, as you have a responsibility to protect not only your employees but also your patrons. To prepare for the unexpected, you should review your security and disaster readiness plans to help you minimize the impact of any potentially threatening situation.  Without prior planning you leave your company open to financial disaster, especially if you are forced to close operations for a period of time. In addition, without a proper plan to cope with a disaster situation, your company may face lawsuits from patrons, vendors or employees claiming negligence.  Ensure Facility Security   It is important to take action before a disaster to assess your facility security and make improvements, if necessary. Though not all security threats can be avoided, some situations can be prevented with appropriate preparation:  Advise management and employees to report any suspicious persons or activity in or around the facility. Establish security measures for patrons entering your facility. This will vary depending on your business, but may include special considerations for children or identification requirements for entry. Survey locks, fences, exterior lights and other physical security devices to ensure that they are in place where needed and in proper operating condition. Establish a monthly inspection of your security perimeter and key protective features of your facility. Pay special attention to areas where you are storing explosive, flammable or toxic chemicals. These areas should be properly secured and inventoried, with limited hands-on contact of these materials when possible. Evaluate critical locations in your facility for proper security, including the electric, telephone and gas units, building entrances, transformers, outside storage units and computer rooms. If your facility has a security/fire alarm system, be sure it is operating properly and that key personnel know how to arm/disarm it. Make sure that fire suppression systems are regularly inspected and maintained. Also be sure that a sufficient number of trusted personnel know how to activate, operate and shut them down. Install cameras to monitor areas that are especially susceptible to violence, theft or vandalism, and post notices so that patrons know the cameras are monitoring their activity. Review your procedures for issuing facility keys and access cards. At a minimum, keep lists of who has been issued keys or access cards and have a procedure for handling a situation when a troubled employee is terminated without returning them. Discuss security with your local police department. Police departments are often very willing to provide information and support to businesses. Have your local fire department conduct a pre-planned visit to your building. While there, they can identify potential hazards and plan fire suppression priorities.  Planning for a Disaster  Improving your business’ security it vitally important, but you should also plan for disaster that can’t be avoided:  Keep copies of insurance policies and other critical documents in a safe and accessible location (e.g. a fireproof safe). Evaluate which disasters are most likely to occur in your area, remembering to include the possibility for terrorist activity. Be sure you are prepared for all of the risks you identify. Establish a disaster response plan, which could include evacuation or building lockdown depending on the situation, and have the plan posted for all staff and patrons to access. Develop a Disaster Recovery or Business Continuity Plan. If you already have one make sure that it is up-to-date. This entails preparing for anything that disrupts your business operations and planning for a backup option when feasible. You also need to plan how you will recover from any business disruptions and re-open as quickly as possible. Have telephone call lists available, including cell phone and pager numbers, for all key personnel so required staff members can be contacted during non-working hours from any location. Review procedures for notifying employees that your facility is closed. Remind employees that they should never attempt to enter areas that are closed by police or other emergency responders. Consider establishing an alternate method for your phone service if the switchboard becomes unusable (e.g. forwarding incoming calls to a cell phone or remote number). Check available emergency supplies such as flashlights, batteries, emergency generators/fuel, patching materials such as plastic sheeting, wood 2x4s, duct tape, spare fire extinguishers, first aid kits, etc.  Brian Popelmayer Hotel Vertical Leader bpopelmayer@cottinghambutler.com 847.370.0379 / Follow me on LinkedIn With over two decades of dedicated Insurance and Risk Management expertise, Brian Popelmayer brings deep hospitality industry knowledge to every client relationship. As a trusted advisor to hotel owners and management companies, Brian specializes in developing customized risk retention and transfer solutions that protect your business interests and bottom line. To learn more about our specialized Hotels & Resorts services, visit: www.CottinghamButler.com/hotels-resorts

Our recent webinar featuring market strategist Donald Broughton provided transportation professionals with crucial insights on how recent tariff announcements are reshaping the logistics landscape. Unlike typical economic analyses, this session cut through market panic to deliver clear, actionable intelligence specifically tailored for transportation companies navigating these uncertain waters. Donald's Takeaways: Strategic Tariff Approach : Many tariffs on trading partners other than Chinese will likely be temporary and used as negotiation tools, while Chinese tariffs will persist. Any remaining tariffs will increase consumer costs and inflation over the next 12-18 months. Service Sector Strength : U.S. service exports remain unaffected by tariffs, and our energy sector continues to excel due to superior fracking technology, securing our position as a global petroleum leader. Economic Outlook : While there's increased risk of a mild recession in the short term, markets will adapt as they did after previous tariff implementations, potentially creating future economic stimulus opportunities. Donald's Emerging Thoughts: Treasury-Mortgage Benefits: Reduced Chinese Treasury sales due to lower exports could decrease bond supply, raising bond prices and lowering yields. This would drive mortgage rates down, potentially below 5.5%, sparking a boom in housing and consumer spending. China’s Strategic Pivot: Increased tariff pressure may push China away from Taiwan and potentially toward North Korea instead. This is because Taiwan is too risky due to tech destruction and US military response. This could serve China's multiple interests: eliminating a nuclear threat, gaining trade concessions, addressing its demographic imbalance, and distracting citizens from economic challenges. While we can't provide definitive predictions in this volatile environment, our presentation will equip you with a framework to understand specific risks and make more logical, informed decisions as tariff terms evolve. To request the webinar recording, please fill out the form below.