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Written by: Chris Loewenberg, Vice President - NSTD For small fleet operators, the insurance landscape has become increasingly challenging. Trucking auto liability premiums have surged by 36 percent per mile over the past eight years, according to the American Transportation Research Institute (ATRI), putting significant financial pressure on carriers - especially those with limited resources to absorb these increases. Last year, insurance cost and availability ranked as the third-greatest issue facing the trucking industry, with lawsuit abuse, a primary driver of rising insurance costs, coming in at number two. As we move through 2026, small fleets continue to face difficult choices: reducing coverage to lower premiums but increasing exposure to catastrophic loss, raising deductibles to shift more risk onto the business, or maintaining comprehensive coverage while absorbing premium increases that impact profitability. While no single strategy can stop premiums from rising, there are practical steps small fleets can take to reduce volatility and improve how they're viewed by insurance carriers. Turn Safety Technology into Real Insurance Value Simply having technology like ELDs, telematics, or dash cameras isn't what drives insurance results. What matters to underwriters is the trend of the data and how you're using it to improve over time. Underwriters focus on whether your fleet can demonstrate improvement - reduced speeding, better hours-of-service compliance, or documented driver coaching after incidents. Fleets that actively review data, address issues, and take corrective action are viewed as more stable and predictable risks. Technology creates insurance value when it supports better decision-making and safer operations - not just when it exists. Work With Insurance Partners Who Understand Trucking Trucking insurance is highly specialized, and small changes in operations, equipment, or contracts can create coverage gaps if they aren't properly addressed. Working with insurance professionals who understand the nuances of trucking - coverage triggers, exclusions, cargo requirements, and contract obligations - helps ensure policies remain aligned with how your fleet operates. This expertise extends to everyday items often overlooked, like certificates of insurance. Knowing when a certificate is truly required, what language matters, and how quickly it needs to be issued can prevent delays, contractual issues, or uncovered exposures. Fleets that build long-term relationships with knowledgeable advisors benefit from continuity, better guidance through market changes, and fewer surprises at renewal or claim time. Use Partnerships and Resources to Reduce Total Risk Insurance costs extend beyond the policy itself. Small fleets can benefit from partnerships and resources that help reduce overall risk: Fuel discount programs that help manage operating expenses Access to excess cargo or specialty coverage when freight changes Safety and training resources focused on common claim drivers Guidance on understanding SMS scores rather than just reacting to them Used correctly, these tools help fleets operate more defensively and avoid surprises that can negatively impact insurance outcomes. Actionable Steps for Small Fleet Operators While market conditions remain challenging, small fleets can take meaningful steps to improve stability: Focus on safety trends and documented improvement, not just compliance Use technology as a management tool, not just a requirement Build relationships with insurance partners who understand trucking-specific risks Treat insurance decisions as part of a long-term strategy, not a yearly transaction Take advantage of resources that reduce total cost of risk beyond the policy itself Rising insurance costs may be unavoidable, but volatility and surprise don't have to be. Fleets that take a disciplined, informed approach to risk management are better positioned to weather the storm and build long-term stability.

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in early 2026. This guide provides comprehensive information on deadlines, covered employers, reporting requirements, and penalties for the 2025 calendar year. Key Deadlines for 2026 For the 2025 calendar year, covered employers must: File Returns with the IRS: March 31, 2026 (electronic filing required for employers filing at least 10 returns during the calendar year) Post Website Notice or Furnish Statements: March 2, 2026 Post a clear, conspicuous, and easily accessible notice on their websites informing individuals that they may request a copy of Forms 1095-B or 1095-C The notice must be retained until October 15, 2026 Statements must be furnished to requesting individuals by the later of January 31, 2026, or 30 days after the date of the request Alternative: Instead of posting the notice online, reporting entities may provide Forms 1095-B or 1095-C directly to individuals by March 2, 2026. Who Must Report The following employers are subject to ACA reporting: Employers with self-insured health plans (Section 6055 reporting) Applicable Large Employers (ALEs) with either fully insured or self-insured health plans (Section 6056 reporting) ALEs are employers with 50 or more full-time employees  (including full-time equivalent employees) during the preceding calendar year. Important: ALEs with self-funded plans are required to comply with both Section 6055 and Section 6056 reporting obligations. However, the IRS allows these employers to use a single combined form (Forms 1094-C and 1095-C) to simplify the reporting process. Understanding Section 6055 and 6056 Reporting Section 6055 Reporting Section 6055 applies to providers of minimum essential coverage (MEC), such as health insurance issuers and employers with self-insured health plans. These entities use Forms 1094-B and 1095-B  to report information about the coverage they provided during the previous year. Section 6056 Reporting Section 6056 applies to ALEs—generally, those employers with 50 or more full-time employees, including full-time equivalents, in the previous year. ALEs use Forms 1094-C and 1095-C  to report information relating to the health coverage that they offer (or do not offer) to their full-time employees. Combined Reporting Employers reporting under both Sections 6055 and 6056—specifically, ALEs with self-insured plans—use a combined reporting method by filing Forms 1094-C and 1095-C. Reporting Deadlines by Employer Type Action Fully Insured ALEs Self-insured ALEs Self-insured Non-ALEs File Forms 1094-C and 1095-C with IRS March 31, 2026 March 31, 2026 N/A File Forms 1094-B and 1095-B with IRS N/A May use combined C forms OR B forms March 31, 2026 Provide Forms 1095-C to employees Upon request after March 2, 2026 website notice* Upon request after March 2, 2026 website notice* N/A *Alternative: Reporting entities may automatically furnish statements directly to individuals by March 2, 2026, instead of posting a website notice. Website notices must be retained until October 15, 2026. Requests must be fulfilled by the later of January 31, 2026, or 30 days after the request date. Filing Extensions Employers may receive an automatic 30-day extension  to file with the IRS by completing and filing Form 8809 by the due date of the return. Additional extensions of time to file may also be available under certain hardship conditions. Electronic Filing Requirements Filing Threshold: Employers that file at least 10 returns  during the calendar year must file electronically. Key Points: The 10-or-more requirement applies in the aggregate to certain information returns (Forms W-2, 1099, 1094, 1095, etc.) Electronic filing is done using the ACA Information Returns (AIR) Program The electronic filing requirement does not apply to employers that request and receive a hardship waiver When filing electronically, follow the formatting in the 'XML Schemas' and 'Business Rules' published on IRS.gov rather than paper return formatting Penalties for Non-Compliance A reporting entity that fails to comply with ACA reporting requirements may be subject to penalties under Code Section 6721 (failure to file correct information returns) and Code Section 6722 (failure to furnish correct payee statements). However, penalties may be waived if the failure is due to reasonable cause and not willful neglect. Penalties may also be reduced if the reporting entity corrects the failure within a certain period. 2026 Penalty Amounts (for 2025 Returns) Penalty Type Per Violation Annual Maximum Annual Maximum (Small Employers*) General $340 $4,098,500 $1,366,000 Corrected Within 30 Days $60 $683,000 $239,000 Corrected After 30 Days and Before Aug. 1 $130 $2,049,000 $683,000 Intentional Disregard $680 No limit No limit *Small employers are defined as those with average annual gross receipts of up to $5 million for the three most recent taxable years. How Cottingham & Butler Can Help Navigating ACA reporting requirements can be complex and time-consuming. Cottingham & Butler has the below support to ensure your organization remains compliant while minimizing administrative burden. Our ACA Reporting Services Include: Compliance Assessment:  We evaluate your current reporting status and identify your specific obligations under Sections 6055 and 6056 Penalty Risk Mitigation : Proactive review and error-checking to help avoid costly penalties ESRP 226J Penalty Appeal : In the event the IRS issues a penalty, our team of ACA experts can assist in drafting a response to appeal the penalty Ongoing Compliance Guidance : Year-round support to help you stay ahead of regulatory changes and maintain compliant practices Form Preparation & Electronic Filing (Additional Cost) : Professional preparation   of Forms 1094 and 1095 with electronic submission through the IRS AIR Program   Contact your Cottingham & Butler account team to discuss how we can support your ACA reporting needs for 2026 and beyond. This document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. Information is current as of January 2026.

As cyberattacks become more frequent and costly, it's crucial for organizations to maximize their financial protection against related losses by purchasing sufficient insurance. Cyber coverage, also known as cyber liability insurance, can help organizations pay for a range of expenses that may result from cyber incidents - including, but not limited to, data breaches, ransomware attacks and phishing scams. The Growing Cyber Threat Landscape The statistics paint a sobering picture of today's cyber risk environment: These numbers underscore the critical importance of comprehensive cyber insurance protection for organizations of all sizes. Two Types of Coverage Cyber insurance typically falls into two categories: first-party coverage - for your direct losses, and third-party coverage - for liability to others. First-Party Coverage First-party coverage protects your organization from direct losses, including: Incident Response Costs: IT forensics, system restoration, customer notifications and call center services Legal Costs: Legal counsel for notification and regulatory obligations Data Recovery: Reconstituting deleted or corrupted data Business Interruption: Lost profits and additional costs from system downtime Cyber Extortion: Response specialists and ransom negotiation Reputational Damage: Crisis management and public relations services Third-Party Coverage Third-party coverage protects against claims, fines and legal action from others: Data Privacy Liability: Costs from third-party lawsuits, credit-watch services and compensation for compromised information Regulatory Defense: Fines, penalties and defense costs from regulatory action or privacy law violations Media Liability: Defense costs and damages from defamation, libel, slander and intellectual property infringement claims How Cottingham & Butler Can Help The cyber insurance marketplace is complex and rapidly evolving. Our team brings deep expertise in cyber risk assessment and insurance placement to help you navigate this challenging landscape. Risk Assessment and Coverage Analysis : We evaluate your cyber risk profile, identify exposures and coverage gaps, and work with your IT teams to understand your unique risk landscape. Market Access and Carrier Relationships : We maintain strong relationships with leading cyber insurance carriers to secure optimal terms and pricing. Claims Advocacy and Support : We provide dedicated claims support to expedite the process and coordinate with approved vendors to minimize business disruption. Ongoing Risk Management : We offer regular coverage reviews, emerging threat briefings and recommendations as your organization grows and changes. Cyber insurance can make all the difference in helping organizations avoid large-scale financial losses. Cottingham & Butler is dedicated to helping you understand your cyber exposures, navigate the insurance marketplace and implement comprehensive protection strategies. Questions?

If you're feeling like your organization is juggling more challenges than ever before, you're not alone. A recent State of the Market Survey of over 1,000 employers confirms what many leaders are experiencing . The good news? While these challenges are real, they're also predictable and manageable with the right strategies. Here are the critical issues shaping the employer landscape this year - and how forward-thinking organizations are turning obstacles into advantages. Economic Uncertainty: Inflation & Rising Healthcare Costs Nearly 60% of employers cite economic uncertainty as their primary challenge, driven by policy shifts from the new administration, ongoing inflation concerns, tariffs affecting supply chains, and sector-specific layoffs. With 64% of employers struggling with inflation and 42% facing rising healthcare costs, organizations are grappling with anticipated 7-8% healthcare cost increases. Resources and Tools: 5 Proven Strategies Every Employer Needs to Know  - How to cut Healthcare costs by up 30%.  We've compiled five of the most impactful considerations your company can make to save on health coverage costs while providing exceptional benefits plans for your employees. Case Study: Cost Containment Through Alignment and Transparency  - As a certified Great Place to Work®, J. J. Keller & Associates, Inc. is committed to providing high-quality, affordable healthcare for their 1,800 associates and their families by employing smart healthcare consumerism strategies that create win-win solutions and reduce the increasing healthcare burden on employees while ensuring they receive the medical care they need. 10 Ways to Reduce Healthcare Costs  - In this session, we share 10 proven strategies that can help you reduce healthcare expenses without driving away your top talent. Compliance Challenges Are Growing Over 26% of employers struggle with evolving federal and state regulations, including employment law changes, increased agency enforcement, and shifting DEI policies. Resources and Tools: How to Navigate State Compliance Regulations  – Brett McKitrick highlights the growing challenges of HR compliance as states increasingly pass complex legislation. Executive Order Aims to Reduce Prescription Drug Costs  - On May 12, President Donald Trump issued an executive order  (EO) that aims to bring the prices Americans pay for prescription drugs in line with those paid by similar nations. How does this impact you? Monthly Compliance Webinar on Compliance Hot Topics  – Use this link to register for upcoming hot topic compliance webinars to stay in the know.  Attraction and Retention Challenges Persist Nearly 60% of employers continue to face talent attraction and retention issues, implementing strategies focused on engagement, compensation, development, and skills-based hiring. Resources and Tools: Critical Role of Compensation in the Recruitment Process  - In today's competitive market, a well-designed compensation strategy is no longer optional, it's essential for attracting top talent and reducing costly turnover. What Employees Want  - From rising compensation expectations to evolving benefit needs, creating an effective total rewards strategy has never been more challenging - or more crucial for your success. Innovative Survey Tool that Transforms Traditional Employee Feedback  - Employers often assume they understand what employees want, but do they truly grasp how satisfied employees are with their benefits packages?   Strategic Workforce Planning Is Essential With 76% of employers actively hiring and most maintaining optimistic hiring plans, organizations are aligning workforce strategies with long-term business goals. Resources and Tools: Employee Benefit Benchmark Reports  - Use our industry specific benchmark reports to give you detailed insights into what other companies in your industry are offering, helping you design a benefits program that attracts top talent without overspending. Empowering Employers in attracting talent  - Maximize employee value and satisfaction with a strategic Total Rewards approach. Benefits & Strategic Communication  - We recognize the pivotal role that communication plays in shaping the employee experience. Our approach is centered around designing and implementing effective benefit communication strategies and materials that not only inform but also empower employees to make educated decisions about their benefits. Moving Forward Together The market presents complex challenges, but organizations that stay informed, focus on strategic planning, and remain agile will thrive. Cottingham & Butler's comprehensive approach addresses each of these critical areas, providing you with the expertise, resources, and innovative solutions needed to navigate uncertainty and position your organization for long-term success. Ready to tackle these challenges head-on?  Contact your Cottingham & Butler team today to discuss how we can help you turn market challenges into competitive advantages.

Our recent webinar, "Cross-Border Safety: Strengthening ELP Standards and CDL Integrity," brought together SMSC Senior Safety Consultant Kara Vines and Belinda Garcia, a retired training and development specialist with the Texas Highway Patrol, to address critical updates to English language proficiency (ELP) requirements for commercial drivers. Whether your fleet operates across state lines or manages drivers from foreign-based carriers, this session delivered practical guidance to strengthen hiring practices and maintain compliance with the new enforcement standards. Missed the live session? View the recording to access these essential insights. Key Takeaways: ELP is now an out-of-service violation — As of June 25, 2025, drivers who can't communicate sufficiently in English will be placed OOS during roadside inspections, with no translation apps or interpreters allowed during assessment. Two-step roadside assessment process — Inspectors will evaluate drivers through verbal interaction and U.S. highway sign comprehension, with failed assessments resulting in immediate OOS placement regardless of where the driver is based. Texas intrastate operations face unique risk — Texas has resisted enforcing the federal ELP rule for intrastate CDLs, creating compliance uncertainty for carriers operating within the state. Enforcements apply to all drivers operating in the U.S., including foreign-based carriers. Click here to view the presentation.

For over 138 years, we've operated on a simple belief: take care of our clients, invest in our colleagues, and good things will follow. That philosophy has guided us from our start as a small main street shop to becoming the third largest privately and independently held insurance broker in the United States. Now, we're adding a new chapter to that story. We're excited to announce that Mike Hessling has joined Cottingham & Butler as President, effective January 19, 2026. Mike’s appointment reflects our commitment to our bright future while staying true to the values that got us here. Mike Hessling President Building on Momentum Over the last few decades, we've had the privilege of serving more clients in more ways than ever before – and we see even more opportunity ahead. Adding a President gives us the capacity to go after it. Mike will partner with CEO David Becker to develop and execute our strategic agenda, with a focus on continued growth and long-term planning. He joins an already strong leadership team, and our people will keep doing what they do best - delivering for our clients. Cottingham & Butler has been family-owned and independent since its founding in 1887, something that's increasingly rare in an industry marked by consolidation. For the Butler family and the over 1,400 passionate professionals, that independence isn’t just a tradition; it’s the foundation of how we serve our clients Better Every Day. "What I love about our business is we make decisions that are right for our clients, our employees, and the long-term future of this company," said Andrew Butler, Executive Chairman. "Mike understands that, and it's part of what makes this such a good fit – for him and for us. We're excited about what's ahead."   The Right Leader at the Right Time Mike joins us from Gallagher Bassett, where he spent over 12 years and rose to CEO of North America. In that role, he led a $1B+ claims operation and a team of more than 3,000 professionals, delivering consistent organic growth year after year. But it wasn't just the numbers that caught our attention – it was how he achieved them. "We've built something special at Cottingham & Butler and adding Mike positions us to build on that momentum," said CEO David Becker. "His track record speaks for itself, but what impressed us most was how he's built his success – taking care of clients, developing people, and running a disciplined operation. Those are the same things we prioritize here at C&B." Mike brings a diverse background to the role. He started his career at Arthur Andersen, then spent years in management consulting at Bridge Strategy Group and Bain & Company before joining Gallagher Bassett in 2012, bringing both strategic perspective and operational expertise to his work. He holds an MBA from Northwestern University's Kellogg School of Management and a BS in Accounting from Penn State. He's a CPA who scored in the top 1% in Illinois on the exam. He's been recognized on the Insurance Business Global 100 list three times and received the Business Insurance Break-Out Award in 2017, which honors the next generation of industry leaders. Beyond business, Mike founded and chaired Gallagher Bassett's Inclusion & Diversity initiative and serves on the board of Youth Outreach Services in Chicago. He and his wife Val are the proud parents of eight children and are relocating to Dubuque from the Chicago area  – we're excited to welcome them to our community.   A Shared Vision For Mike, the decision to leave a successful tenure at Gallagher Bassett came down to something harder to quantify than revenue or growth targets. "I've admired Cottingham & Butler from afar for years – the culture, the client focus, and the way they take care of their people," he said. "I'm excited to join this team and help build on what's already a tremendous foundation." It's a sentiment that resonates with C&B's leadership. In a market where service and quality matter more than ever, Cottingham & Butler has carved out a distinctive and stellar reputation – one that Hessling says he's eager to be part of. "This is an investment in our future," Becker said. "We want to make sure we have the leadership in place to pursue new opportunities while never losing sight of what matters most – taking care of our clients and building great careers for our people."

Written by: Cottingham & Butler Food & Agribusiness Group A Moment to Reflect Before We Look Ahead As 2025 drew to a close, many of us pause to take stock - of what worked, what changed, and what lies ahead. For risk managers and insurance buyers, this reflection is more than tradition, its strategy. The property insurance market has shifted dramatically over the past two years and understanding where it’s headed in 2026 is critical for setting goals, budgets, and expectations.  With softening trends accelerating, admitted and non-admitted markets colliding, and coverage terms evolving, now is the time to ask:  Will the E&S market plateau - or continue to soften? And how should you position to capture the upside while protecting against volatility?   What’s behind the softening?   Capacity Surge:  New entrants and returning carriers have boosted competition, driving down rates and improving terms. In many placements it’s typical to see oversubscription of 50-70% on individual layers, a clear signal that markets are eager to deploy capital.   Reinsurance Relief:   After historically tough 1/1 renewals in 2023, risk adjusted property CAT rates fell in January and midyear 2025 (loss free programs down ~10–15%; higher layers down up to ~20%), with strong ILS participation and healthy retained earnings driving supply. That relief has trickled down to primary property pricing and terms.   Profitability:  While catastrophe (CAT) losses remain elevated, industry capital levels are strong. 2024 ranked as the third-costliest year for natural catastrophes, with losses approaching $140 billion. For 2025, natural-catastrophe losses are projected to decline by approximately 13–24%. Reinsurers and markets closed out 2025 with robust capital positions and higher attachment points, reinforcing overall resilience. This strength is expected to support continued market softening - barring the occurrence of an extreme peak-loss event.    Bottom line:  The E&S property market is not likely to reharden broadly in 2026 without a severe, capital eroding catastrophe. We expect continued softening/plateau characteristics: modest rate decreases, expanding capacity, and better terms.  Where are the improvements?   Deductibles:  In 2025, many insureds capitalized on favorable market conditions to secure lower deductibles. During the hard market cycle from 2017 to early 2024, deductible levels often climbed to uncomfortable thresholds, shifting more risk retention onto buyers. As competition intensified, carriers were compelled to offer reduced deductible options with minimal impact on overall pricing - reflecting the depth of current market flexibility.  Limit Correction:  Many insureds are leveraging today’s competitive market to reinvest savings into higher limits. During the hard cycle of 2017 to early 2024, buyers often reduced total limits - driven by cost pressures or limited capacity. With abundant supply and improved pricing, organizations are now restoring or expanding limits to strengthen balance sheet protection and meet lender or contractual requirements.  Terms & conditions:  As competition intensifies, markets are offering enhancements to differentiate themselves. Buyers are seeing “blanket” coverage   reinstated, removal of restrictive endorsements such as Occurrence Limit of Liability (OLLE), higher margin clauses, and increased sublimits for critical exposures. These improvements reflect carriers’ willingness to provide broader protection as part of their competitive strategy.  Admitted vs. Non-Admitted Collide   Converging economics.  As E&S softens (rate, deductibles, broader terms), some admitted carriers  still push rate for technical adequacy . The result: both channels now  compete head-to-head  on price and form in segments that have been historically dominated by the admitted marketplace.    Scale and Share.  E&S now represents  a much larger slice of commercial lines  than a decade ago; NAIC/AM Best data show a sustained shift of complex property risks to non-admitted carriers - especially in FL/CA/LA. As admitted appetite expands in select niches, the contest will be won on  form, price, capacity, and engineering cred , not just license status.     Strategies for Insureds in a Softening Cycle    1) Double down on Risk Engineering.  The best price cuts and coverage offerings are going to data rich, engineered facilities with credible valuations, CAT hardening (roof, defensible space, flood measures), and maintenance discipline. Underwriters are rewarding evidence, not anecdotes.     2) Treat valuations as a competitive weapon.  Accurate valuations (cost/sq ft) and modern cost indices unlock broader blanket limits and reduce margin clause friction.     3) Revisit Program Structure . Take advantage of larger participation from competitive carriers and cleaner tower structures. Look to explore higher limits, lower deductibles, all while achieving modest rate reductions.     4) Push Non-Admitted vs Admitted Options.  Admitted vs. E&S is no longer a foregone conclusion for some sectors of the Food/Ag industry.  In 2026, lead with whichever channel wins on economics + form + engineering support, not label. Expect side-by-side options and a structured recommendation.    5) Invest in Relationships - Domestic and Overseas.  Reinsurer appetite and London/Bermuda capacity are relationship sensitive. Consistent submissions, technical calls, and plant tours with underwriting and engineering teams generate durable concessions (limits, terms, perils) that outlast a single renewal cycle.    Closing Thoughts:    The property insurance market has shifted dramatically - and opportunities like this don’t last. For nearly six years, buyers absorbed higher deductibles, trimmed limits, and accepted restrictive terms because there was no alternative. Today, the pendulum has swung. Capacity is plentiful, coverage is broadening, and markets are competing to win your business.    The question isn’t “Will the market stay soft?” - it’s “Are you positioned to take advantage before it changes again?”    Every renewal is a chance to reset your strategy:  Could you restore limits cut during the hard cycle?  Reduce deductibles without adding cost?  Secure blanket coverage and remove restrictive endorsements?  These aren’t hypothetical - they’re happening now for those who act. Waiting means leaving value on the table and risking being caught when the cycle turns.

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.

The transportation industry faced significant headwinds in 2025, but our captive programs proved their worth when it mattered most. Through disciplined risk management and the strength of collective partnership, we didn't just weather the storm - we thrived. As we close out the year, the results speak for themselves. Early Planning, Better Outcomes Timing matters in insurance planning. This year, members across all 8 Cottingham & Butler trucking captives received their renewal terms an average of 46 days before their renewal date. This early delivery gave our members the runway they needed to make informed decisions and plan confidently for the year ahead. Rate Relief Where It Counts While the broader market faced obstacles, our captive members saw meaningful rate improvements. 34% of trucking captive members received Auto Liability rate decreases at renewal, and an even more impressive 60% saw their Work Comp rates go down. These reductions reflect the power of collective risk management and the strength of our membership. A Vote of Confidence Perhaps the most telling metric: we maintained 100% voluntary retention across all transportation captive program members. When renewal time came, every single member chose to stay. This isn't just a retention number - it's a testament to the value, service, and partnership our captive programs provide. Returning Value to Members The captive model operates on a simple principle - when the program performs well, members share in that success. In 2025, we returned $22.9 million in dividends to trucking captive members, dollars that went back into their businesses rather than disappearing into traditional insurance markets. Looking Ahead These results didn't happen by accident. They reflect the power of what's possible when transportation companies come together with a shared commitment to building something better than what the traditional market offers. While the traditional market continues to fluctuate, our captive members are building stability, retaining more capital, and planning with confidence. Together, we can achieve more. Contact your Cottingham & Butler captive expert to see how these captive results could positively impact your business!

The Current State of Commercial Auto Insurance The numbers tell a concerning story. Trucking auto liability premiums have surged 36 percent per mile over the past eight years, creating persistent unprofitability for insurers and financial pressure for motor carriers. What makes this trend particularly frustrating is that truck crashes have actually declined over the past four years, yet premiums continue their upward trajectory. It's no surprise that in 2025, insurance cost and availability ranked as the third-greatest issue facing the trucking industry, while lawsuit abuse, a primary driver of rising insurance costs, came in second. How Fleets Are Responding In response to these financial pressures, motor carriers are getting creative with their risk management strategies. Many are exploring: ATRI's previous research revealed that from 2018 to 2020, many fleets reduced coverage and raised deductibles in search of savings. While these changes self-incentivized safety improvements, carriers still experienced higher premiums overall. Why This Research Matters As Josh Hankins, J.B. Hunt Senior VP of Safety & Security, notes: "The total cost of risk is growing annually for every fleet, regardless of size. While many carriers are cutting back on insurance coverage to control expenses, premiums keep climbing and reducing coverage only heightens exposure to catastrophic litigation." ATRI's new research aims to expand on previous findings by examining industry-wide trends in the adoption and effectiveness of various risk management strategies. Understanding what works and what doesn't can help the entire industry make more informed decisions. Participate and Gain Valuable Insights ATRI is requesting motor carriers to submit data on their coverage stacks for 2021 through 2024, along with information on safety technology usage and alternative insurance arrangements. All data remains completely confidential and is analyzed only in aggregate form. ATRI will sign non-disclosure agreements as needed. The benefit for participating carriers?  A customized report comparing your fleet's cost of risk to an anonymous peer group - valuable intelligence for benchmarking and strategic planning. Motor carriers can complete the survey  by PDF  or  online here .  The deadline is Friday, December 19. How Cottingham & Butler Can Help At Cottingham & Butler, we work daily with transportation companies navigating these exact challenges. Our specialized transportation insurance team understands the unique pressures facing motor carriers and can help you: Evaluate your current coverage structure and total cost of risk Identify safety technologies and protocols that may positively impact your insurance costs Explore alternative insurance arrangements that may fit your operation Develop comprehensive risk management strategies tailored to your fleet The commercial auto insurance landscape isn't getting easier, but with the right data, strategies, and insurance partnership, fleets can better position themselves to weather this storm. Ready to discuss your transportation insurance strategy?  Contact our transportation insurance specialists at Cottingham & Butler to learn how we can help protect your operation while managing costs. For more information about ATRI's research or to participate in the survey, visit the ATRI website. Survey deadline: December 19, 2025.

For small trucking fleets, the current freight environment presents a particularly difficult challenge. According to the American Transportation Research Institute's (ATRI) recently released 2025 findings in  An Analysis of the Operational Costs of Trucking , the gap between operational costs and achievable rates is creating unsustainable margins across the industry - and small fleets are feeling the pressure most acutely. The Small Fleet Reality ATRI's research reveals that the industry's average cost of operating a truck in 2024 was $2.260 per mile. However, when lower fuel costs are excluded, marginal costs actually rose 3.6 percent to $1.779 per mile—the highest non-fuel operating costs ever recorded by ATRI. For small fleet owners operating on thin margins and competing against larger carriers for freight, these rising costs create a critical challenge: how do you maintain profitability when your costs are climbing but rate pressure remains intense? Small fleets often face additional cost disadvantages. While larger carriers might negotiate volume discounts on equipment, parts, and insurance, smaller operators typically pay more on a per-unit basis. This makes every dollar of operational cost even more critical to understand and manage. Where Small Fleets Are Getting Hit Hardest ATRI's data shows cost increases in areas that disproportionately affect small fleets: Truck and trailer payments  surged 8.3 percent to a record-high $0.390 per mile. Small fleets that recently invested in new equipment to remain competitive are seeing these payments consume a larger portion of revenue. Driver benefits costs  increased 4.8 percent to $0.197 per mile. Small fleets must offer competitive benefits to attract and retain quality drivers, yet have less flexibility to absorb these rising costs than larger operations. Insurance costs  remain a significant expense category, and small fleets often face higher rates due to smaller risk pools and less negotiating power with insurers. Meanwhile, while driver wage increases slowed to 2.4 percent and fuel costs declined, these areas of relief don't offset the rising fixed costs that small fleets must pay regardless of how many loads they haul. The Margin Crisis for Small Operators The profitability picture is particularly stark for smaller carriers. ATRI's findings show average operating margins below 2 percent in every sector except less-than-truckload (LTL), with the truckload sector posting an average operating margin of -2.3 percent. For small fleets operating just a handful of trucks, negative margins can quickly become an existential threat. "The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing," said Groendyke Transport, Inc. President and CEO Greg Hodgen. "ATRI's Operational Costs data and the customized benchmarking report that compares us to similar fleets are more critical than ever as we navigate rising costs and decreasing margins in this adverse environment." Small fleet operators face difficult decisions in this environment: accept unprofitable loads to keep trucks moving, park equipment until rates improve, or exit the industry altogether. The report documents industry-wide impacts including a 2.2 percent drop in truck capacity, empty miles rising to 16.7 percent, and many carriers reducing staff and parking trucks. Rate Negotiations When You're the Smaller Partner Small fleets typically have less leverage in rate negotiations than their larger competitors. When you're competing for business against carriers with hundreds of trucks, it's challenging to hold firm on rates that cover your true costs. However, small fleet operators who understand their exact cost per mile—and can clearly communicate their value proposition—are better positioned to negotiate sustainable rates. This is where having a partner who understands the unique challenges of small fleet operations becomes valuable. At Cottingham & Butler, our transportation specialists work extensively with small and mid-sized fleets to help them compete more effectively while managing costs. How Small Fleets Can Strengthen Their Position Get Clarity on Your True Costs  – Many small fleet owners have a general sense of their costs but lack the detailed per-mile breakdown needed for effective rate discussions. We help you understand exactly how insurance, risk management, and other fixed costs factor into your operations so you can identify your true minimum sustainable rates. Optimize Insurance Costs for Your Fleet Size  – Our team specializes in finding competitive coverage options designed for smaller operations. Even a modest reduction in insurance premiums can meaningfully impact your bottom line when operating on tight margins. Build Safety Records That Support Better Rates  – One area where small fleets can compete with larger carriers is safety performance. Strong safety records can lead to lower insurance costs and provide concrete evidence when negotiating with quality-focused customers who value reliable service. We help develop practical safety programs scaled appropriately for smaller operations. Access Better Risk Management Resources  – Large carriers have dedicated risk management departments; small fleets typically don't. We provide the expertise and resources that help level the playing field, from DOT compliance support to driver qualification programs to claims management guidance. Understand Your Competitive Advantages  – Small fleets offer unique benefits: flexibility, personalized service, direct owner involvement, and often superior communication. When rate discussions focus solely on price, small fleets lose. We help you articulate the total value you provide and identify customers who appreciate these advantages. Plan for Equipment Decisions Strategically  – Whether you're considering adding trucks as you grow or need to make difficult decisions about fleet size during slow periods, your insurance program must adapt accordingly. We ensure your coverage aligns with your current operations and provide guidance on the insurance implications of fleet changes. Positioning for Better Times Ahead Small fleets that manage costs effectively during this challenging period will be positioned to thrive when rates recover. Having a clear understanding of your operational costs—including insurance and risk management—helps you make informed decisions about which loads to accept, how to negotiate rates, and where you can potentially reduce expenses without compromising service quality. The full ATRI report is available on  ATRI's website , and we encourage small fleet operators to review the detailed cost breakdowns. Understanding how your costs compare to industry benchmarks strengthens your position in every customer conversation. If you'd like to discuss how Cottingham & Butler's transportation team can help your small fleet navigate these market challenges while optimizing insurance costs and building competitive advantages through risk management, we're here to help. Our specialists understand the unique pressures facing small fleet operators and provide practical, cost-effective solutions tailored to your operation's size and needs. Sources: American Transportation Research Institute (ATRI). (2025).  An Analysis of the Operational Costs of Trucking: 2025 Update . Retrieved from  https://truckingresearch.org/

In a recent webinar, safety expert TJ Greenwood walked attendees through the critical details of OSHA 300 log recordkeeping - a compliance requirement that can make or break a site inspection. TJ provided practical guidance on accurately completing the OSHA 300 log, explaining why this document is often the first thing OSHA inspectors request and how proper maintenance creates a positive impression. Participants gained actionable strategies for staying compliant and avoiding common recordkeeping pitfalls. Key Takeaways Master the requirements for OSHA 300 log recordkeeping to maintain accurate records and avoid compliance issues that could arise during OSHA inspections. Learn proven techniques for completing the OSHA 300 log correctly, ensuring your documentation demonstrates your organization's commitment to workplace safety and regulatory compliance. Understand how to prepare and present your OSHA 300 log effectively during OSHA inspections, as it is often the first document requested. Implement practical strategies to maintain ongoing compliance with OSHA recordkeeping requirements, helping your organization stay audit-ready and reduce potential penalties. Click here to view the presentation.