Cottingham & Butler | Commercial Insurance Market Index After 32 straight quarters of increases, the commercial market posted its first broad decline since 2017. Property has swung competitive, casualty is firming, and commercial auto remains a market of its own. Here’s what moved, why, and how to think about it. Overall market Quarters ended Commercial property Commercial auto −1.2% 32 −5.5% +5.8% For the first time since 2017, commercial insurance rates broadly declined. The Q1 2026 market index registered a 1.2% average reduction, ending a remarkable run of 32 consecutive quarters of increases. The hard market that defined renewals for the better part of a decade has given way to more competitive conditions — though, as always, unevenly. The shift is clearest in property, which has swung from years of steep increases into a genuinely competitive market. Workers’ compensation, management liability, and cyber remain buyer-friendly. Casualty lines — general liability and umbrella — are still firming, and commercial auto continues on the separate, upward track it has held for years. Rates by coverage The headline reduction masks real divergence between coverages. Property led the decreases as insurers returned to competition; workers’ compensation and cyber extended declines that have run for over a year. General liability and umbrella continued to rise on litigation severity, and commercial auto posted the largest increase of any line — its 59th consecutive quarterly increase. The market is broadly softer, but far from uniform. Coverage Q1 2026 avg. change Commercial Property −5.5% Workers’ Compensation −3.7% Cyber −3.5% Directors & Officers / EPLI −2.1% General Liability +2.6% Umbrella +4.8% Commercial Auto +5.8% Source: Council of Insurance Agents & Brokers Commercial Market Index, Q1 2026. Survey averages; individual accounts vary widely by exposure and loss history. C&B Perspective Survey averages describe the overall market, not any individual account. In practice, we see a much wider spread than the averages suggest. Accounts with clean loss history and well-documented exposures are landing at the favorable end of every range, while distressed risks continue to face firm terms — even in lines that are otherwise softening. The average is only the starting point; an account’s own loss history and exposure quality determine whether it beats the market or trails it. How rates vary by program size Insurance programs vary widely in size and complexity — from a single-location operation with a handful of coverages to a multi-site enterprise with layered programs across many lines — and the softening did not reach all of them at the same pace. For most of the hard market, increases hit medium and large accounts harder than small ones. This quarter, that pattern reversed. Program size Q1 2026 change Read Small +1.1% Still rising, but slower Medium −1.9% Turned negative Large −2.7% Deepest decrease Source: CIAB Commercial Market Index, Q1 2026. Size reflects the commissions and fees a program generates — a proxy for how large and complex it is. The largest, most complex programs posted the deepest decreases (−2.7%). These accounts attract the most insurer competition, and the organizations behind them tend to bring the data and leverage to capitalize on it. Mid-sized programs, flat the prior quarter, moved into decreases this quarter (−1.9%), a sign the relief is broadening beyond the biggest buyers. The smallest programs still saw increases (+1.1%), though more modest than before — smaller, more standardized programs are consistently the last to reflect a market shift. The pattern points in one direction: softening began at the top and is steadily moving down-market. Property: a competitive market returns Property is where the turn is most pronounced. After significant increases through 2022 and 2023, the line tempered in 2024 and softened through 2025 — and by Q1 2026, insurers had returned to active competition. The driver is profitability: a stretch of poor loss years gave way to improving results, and insurers now have appetite they’re willing to deploy. It is, however, a tale of two markets. Risks that were hit hardest during the hard market — particularly those placed in the London and excess & surplus (E&S) markets — are now seeing significant, often double-digit, reductions. Standard-market risks are seeing a more measured range, from flat renewals to reductions in the 5–10% area. Every risk is treated on its own merits, and the gap between the best and worst outcomes remains wide. C&B Perspective The improvement traces in part to easing catastrophe losses — 2025’s roughly $101B in insured catastrophe losses came in well below 2024’s $180B-plus. But the underlying volatility hasn’t gone away. Severe convective storm activity (wind and hail) continues to drive losses, particularly across the Midwest, and insurers have responded with percentage-based wind/hail deductibles (commonly 1–3% of values) that shift more of that risk to the insured. Softer rate is real, but the structural exposure deserves the same scrutiny it did a year ago. Casualty: general liability and umbrella keep firming While property eased, the casualty lines moved the other way. General liability continued to firm, with rate increases in the low-to-mid single digits, as insurers cited rising loss severity — social inflation, and growing exposures such as PFAS and difficult product and food-related liability. The pressure is real, but the rate trend has been improving over the past year. Umbrella tells a sharper version of the same story. Pricing began firming dramatically in 2019 and has continued through 2025, driven largely by commercial auto severity. Headline increases have started to plateau, but years of compounding remain on the books, and capacity at the higher layers ($10M and $25M) stays limited. Fleet-exposed accounts continue to face steeper increases than the broader market. Why umbrella severity keeps climbing Average commercial auto verdict: roughly $3.6M in 2010 to over $30M in recent years. Average cost to settle a commercial auto fatality: about $1.9M in the mid-2000s to over $4M today, with a median verdict above $5M. Nuclear verdicts: $10M–$100M awards leveling off after a post-COVID spike, while “mega” verdicts above $100M continue to rise. Sources: industry verdict studies including Travelers’ Top-100 Verdicts of 2024 and CaseMetrix data; figures are illustrative of the severity trend. Why commercial auto is still rising Commercial auto is the exception that has now lasted 59 consecutive quarters. Its pricing tracks its own claims experience rather than the broader market cycle, which is why it can keep rising even as property and other lines fall. The line has been unprofitable for insurers in nearly every year for over a decade, and the rate increases — running in the high single digits and higher for fleet-heavy accounts — reflect a line still trying to reach breakeven. What’s driving commercial auto claims Liability severity & nuclear verdicts. Rising lawsuit severity and litigation financing keep pushing verdicts higher, with the largest awards reshaping insurers’ loss expectations across entire books. Repair & replacement cost. Vehicle technology — sensors, cameras, driver-assist systems — makes every collision more expensive to repair, with parts and labor inflation compounding the effect. Distracted driving. Distraction and congested roads keep claim frequency elevated, adding to the severity problems and keeping overall loss costs on a steady climb. Driver shortage. A thin driver pool puts less-experienced operators behind the wheel, raising the stakes on hiring and retention and feeding the frequency problem. Loss-trend detail per AM Best March 2026 commercial auto reporting. The profitability gap explains why relief isn’t coming soon. Even after years of double-digit increases, the line’s 2025 combined ratio sat around 109%, meaning insurers still paid out more than they took in. The brief, COVID-related improvement of 2020–21 proved short-lived, and the unprofitable trajectory has continued since. Conditions are improving slightly, but auto remains the hardest line to place well. The broader point isn’t that auto is uniquely difficult — it’s that not every coverage responds to the same forces. Some are priced on the broad market cycle; others, like auto, on their own claims history. Knowing which is which is the foundation of a sound renewal strategy in any market. For Transportation Clients Our transportation quarterly update goes deeper on what moves your cost — verdict exposure, telematics and safety data, and captive and deductible structures. The buyer-friendly lines: comp, management liability, cyber Workers’ compensation (−3.7%). Loss severity has improved on better safety and claims management, keeping the line competitive. The watch item is medical inflation — the medical portion of comp claims now exceeds 60% of costs and continued medical cost growth will eventually pressure rates. Directors & Officers / EPLI (−2.1%). Competitive conditions and broad terms persist, even as claims frequency and severity continue — driven by wage-and-hour litigation and an elevated overall litigation environment. Cyber (−3.5%). Pricing has stabilized as insureds improved IT protocols in response to ransomware. That stability may prove short-lived: underlying claims trends remain concerning, and the line could firm again if loss activity reaccelerates. What it means for your industry Your renewal will look very different from the headline, depending on which coverages make up most of your program. The reads below show what this quarter’s movement tends to mean industry by industry, so you know where the opportunity is and where to put your attention. Whatever your industry, the same logic applies: identify the coverages that carry the most premium, and track which way each one moved. Trucking. The biggest cost is still rising. Commercial auto anchors the program and climbed again, so the broad softening reaches these businesses the least. Easing property and workers’ compensation help around the edges, but the fleet drives the total — and managing that line through safety, data, and structure matters more than any market shift. Distribution. A split picture. Easing property and warehouse coverage pull one way; the same rising auto costs that affect trucking pull the other. Where a distributor lands depends on how much of the program sits in the fleet versus the facilities — and the two halves are worth looking at separately. Manufacturing. Among the better-positioned. Property is typically the largest cost and fell the most, and insurer appetite is broad. Product liability and any owned vehicles work against that, but the weight of the program sits on the side that softened — making this a year where well-documented property exposures can benefit most. Construction. Mixed, and structure-dependent. Property eased while excess and umbrella rose and contractor coverage held roughly flat; contractors with large fleets also carry the auto increase. Because property and excess layers tend to set the tone, how the program is built matters more than any single coverage’s direction. Food & agriculture. Genuinely mixed. Property and equipment costs are easing, but product and food-liability exposure is exactly where general liability insurers are seeking rate — and any fleet adds auto pressure. The net depends on the balance of facilities, product, and vehicles in the program. Retail. Generally favorable. Property and cyber — the coverages that matter most to multi-location and online retailers — both fell. General liability is the offset to watch, particularly for high-traffic formats where customer-injury exposure is greatest. Professional services. A softer picture than in recent years, with directors & officers, employment-practices, and cyber coverage all easing. Firms with little property or vehicle exposure see the cleanest version of this quarter’s relief. Healthcare. Cross-currents. Easing workers’ compensation and cyber pull against firmer liability and rising medical severity. The outcome turns on the balance between staffing exposure on one side and clinical and professional liability on the other. Higher education. Broadly favorable on paper, as property, cyber, and management-liability coverage all eased — covering much of a typical campus risk profile. The exceptions to watch are owned vehicle fleets, abuse and athletics exposure, and anything tied to enrollment, where the broad trend may not hold. For Risk Management Clients Our risk management quarterly update goes deeper on the market conditions, program structure, and trends shaping your renewal. Get the full outlook to see what this market means for your program. Managing total cost of risk A softer market naturally turns attention to rate — but rate is only part of what determines the long-term cost of a program. The more durable opportunity is what a market like this lets a business address in the underlying risk, because the same factors that shape pricing now are what hold it steady when the market turns back. It is also where an experienced advisor adds the most value: the difference between marketing a renewal and managing risk year-round shows up most clearly in conditions like these. A few principles shape how we approach a program heading into renewal: Data quality drives the outcome. Insurers price against your claims history, exposure detail, and current values — so how that information is assembled and presented often matters as much as the underlying risk. Clean, complete, well-documented data is the single biggest factor in how a program is received, and in a competitive market it’s often what earns the better terms. The most effective programs are built and documented well before they reach the market. Understand what’s driving each coverage. Some costs move with the broad insurance market; others, like commercial auto, move on a business’s own claims and the litigation environment around them. Knowing which is which sets realistic expectations — where the market itself will deliver relief, and where progress has to come from prevention and risk management. It’s the difference between hoping for a better renewal and knowing where one is actually possible. Premium is one number; total cost of risk is the real one. Deductibles, how much risk a business keeps versus transfers, the cost of the claims that do occur, and the overall structure of a program all shape what coverage actually costs over time. A lower premium built on the wrong structure can cost more in the long run — which is why the structure, not the quote, is the right place to start. Loss prevention compounds over time. The safety, claims-management, and loss-control work done between renewals is what bends the long-term cost curve. A softer market makes a strong track record more visible and more valuable — but it’s consistent investment over time, not favorable timing, that lowers the cost of risk. Approach the market deliberately. A more competitive environment is the time to confirm a program reflects current conditions, surface potential issues early, and set renewal strategy well ahead of the deadline — rather than defaulting to last year’s program and terms. The earlier that work begins, the more leverage a business has when terms are set. The organizations that treat renewal as a point-in-time price check tend to capture the least; those that manage total cost of risk year-round are positioned to benefit whichever way the market moves. Signals for next quarter Property capacity and discipline. The decreases came with a clear jump in insurer appetite. Whether insurers hold their pricing discipline as they compete — or over-correct to win business — will determine how long this relief lasts and how far it goes. Auto claims, not the rate. Auto pricing follows auto losses, so the rate is a lagging signal. Verdict sizes and repair-cost inflation are the real indicators — they’ll show whether the line is moving toward relief long before the rate itself does. Medical inflation in workers’ comp. Medical costs now make up more than 60% of comp claims, so sustained medical inflation is the most likely force to push that line’s rates back upward — the clearest thing to watch for a turn in an otherwise easing coverage. Whether the softening spreads. Several coverages flattened this quarter rather than fell. If they tip negative over the next quarter or two, the competitive market broadens — and more of a typical program lands in buyer-friendly territory. Know where the market stands. Know where you stand. A turning market rewards preparation. Whether you’re heading into renewal, evaluating coverage, or looking for ways to manage rising costs in the lines that are still firming, our team brings the market knowledge and insurer relationships to help you make the right call — and the year-round risk and claims expertise that turns a market shift into a lasting advantage. Analysis based on Cottingham & Butler’s review of Q1 2026 commercial property and casualty market conditions, including the Council of Insurance Agents & Brokers Commercial Market Index, AM Best market reporting, and industry catastrophe and verdict data. Rate ranges reflect Cottingham & Butler’s market observations; survey figures reflect CIAB averages across all account sizes. Industry and segment readings are directional; individual results vary by exposure, geography, and loss history.

Hosted by SMSC Safety Consultant Barry Wertz, "Crash Data Analysis: What Your Fleet's History is Telling You" explored Excel's essential features that turn raw data into actionable insights. Attendees discovered how charts, sparklines, and conditional formatting can help communicate trends instantly and built skills that make data analysis faster, more accurate, and more efficient. If you were unable to attend or want to revisit this session, view the webinar recording now! Key Takeaways: Good analysis starts with the right data. Without a reliable foundation, even the most sophisticated tools can produce misleading results. Clean, well-structured data allows Excel to work more effectively and ensures your outputs are accurate and ready to act on. The patterns uncovered in your data should inform decisions and drive meaningful change, not simply populate a report. Clear, well-designed visuals make it easier for stakeholders to interpret findings quickly and respond with confidence. Click here to the view the presentation.

As we approach the deadline for calendar year ERISA plans to file their annual 5500 Forms, we thought it would be a good idea to dive a little deeper into some of the trickier aspects of timely preparing and filing the annual reports. The Form 5500 Series is part of ERISA’s reporting and disclosure framework and serves as a key compliance tool for the Department of Labor (DOL). For health and welfare plans, the Form 5500 is an annual filing that provides information about an employer’s ERISA benefit plans, including medical, dental, vision, life and more. These filings are publicly available and are used to monitor compliance, evaluate benefit trends, and ensure transparency for plan participants. While retirement plans are also subject to Form 5500 requirements, this summary focuses on health and welfare plans. Which Plans Must File Form 5500 filing requirements apply to benefit plans that are subject to ERISA. Most employer-sponsored health and welfare benefits fall into this category. In general, an unfunded ERISA plan, where claims and plan expenses are paid out of the employer’s general assets, must file a Form 5500 if there are 100 or more participants at the beginning of the plan year. Participant counts include covered employees and certain former employees (such as COBRA participants), but do not include spouses or dependents. Plans that are funded (funds segregated in a separate account or trust – e.g., a VEBA) must file regardless of size. In addition, plans sponsored through a multiple employer welfare arrangement (MEWA) are subject to filing requirements even if participant counts are below 100. Certain arrangements are not subject to ERISA and therefore do not require a Form 5500. These include plans sponsored by government or church employers, certain voluntary benefits with minimal employer involvement, and common payroll practices such as PTO or sick leave paid from the employer’s general assets. Filing Deadlines and Process Form 5500 filings are due on the last day of the seventh month following the end of the plan year, including short plan years. For calendar year plans, this typically means a July 31 deadline. Employers may request an automatic extension of up to 2½ months by filing Form 5558, extending the deadline to October 15 for calendar year plans. All filings must be submitted electronically through the DOL’s EFAST2 system. Employers may prepare filings directly using the DOL’s online tools or work with third-party vendors such as consultants, accountants, or legal advisors. Individual filing credentials are obtained through Login.gov and are tied to individuals rather than specific companies. Determining the Number of Filings A separate Form 5500 is required for each ERISA plan. However, employers have flexibility in defining what constitutes a single plan through plan documentation. Many employers use a WRAP document to bundle multiple benefits, such as medical, dental, vision, and life insurance, into one ERISA plan. Bundling benefits can significantly simplify reporting by allowing a single Form 5500 filing, provided the combined plan meets the filing threshold. Without a WRAP document, each benefit may be treated as a separate plan, potentially requiring multiple filings. For employers operating within a controlled group, a single Form 5500 may be filed for a shared plan, with one entity designated as the plan sponsor. In contrast, multiple employer welfare arrangements (MEWA) may require separate filings depending on how the plan is structured and governed. Form Structure and Required Information The Form 5500 consists of a main body and, where applicable, supporting schedules. The main body includes three parts: Plan year, plan type, and filing type (e.g., first, final, amended); Plan identifiers (e.g., plan name, number, and effective date), plan sponsor and plan administrator’s name, EIN and contact information, participant counts at start and end of plan year, codes to indicate what types of benefit are offered, plan funding details, and which schedules, if any, are attached; and Indication of whether the plan is a MEWA required to file a Form M-1. Additional schedules may be required depending on how the plan is funded and administered. Fully- insured plans require Schedule A, which includes insurance-related information provided by carriers. If the insurance company does not automatically furnish a Schedule A, it is the employer’s responsibility to request one. Should the carrier fail to provide a Schedule A, the employer must still complete the Schedule A to the best of their ability and indicate that the carrier failed to provide the required information. With unfunded, self-funded plans, often only the Form 5500 main body is required, and no schedule attachments are necessary. When multiple benefits are combined under a WRAP document, the filing must reflect the entire plan, including total participant counts and all applicable benefit types and funding sources. Penalties and Correction Programs Failure to file a required Form 5500 can result in significant penalties. Under ERISA, penalties can accrue daily and reach substantial amounts if left unaddressed. A filing that is rejected is treated as not filed until corrected. To encourage compliance, the DOL offers the Delinquent Filer Voluntary Compliance Program (DFVCP), which allows employers to submit late filings with significantly reduced penalties. This program is generally available only if the employer takes action before being contacted by regulators. Summary Annual Report (SAR) Employers that file a Form 5500 may also be required to distribute a Summary Annual Report (SAR) to plan participants. The SAR is a simplified summary of the Form 5500 and includes basic financial and plan information, along with participant rights. In practice, SAR requirements most commonly apply to fully-insured plans (most self-funded plans are exempt). The SAR must generally be distributed within nine months after the end of the plan year, or within two months after an extended filing deadline. Distribution must comply with ERISA disclosure rules, which allow delivery by mail, hand, or electronically under certain conditions. Key Takeaways Form 5500 compliance is an important component of ERISA plan administration and requires careful attention to plan structure, participant counts, and funding arrangements. Employers should regularly review their benefit structure, confirm whether filing thresholds are met, and ensure that filings are completed accurately and on time.

In line with recent years, 2026 has so far been an active one for employee leave laws at the state level. Since the beginning of the year, brand-new paid family and medical leave programs have been launched in Delaware and Minnesota, and a significant redesign of the Washington paid family and medical leave program took effect. The Washington changes should help employers limit leave stacking, but the amendments make more employers subject to employee restoration rights. Smaller expansions to existing leave rights have gone into effect since January in states such as California, Colorado, Connecticut, Oregon and Rhode Island. Employers must also keep their eye on the near-term horizon, as more changes in the employee leave landscape are coming this year, particularly in Illinois, Maine and New Jersey. This Compliance Overview outlines notable recent and upcoming developments in state leave laws. State Leave Law Changes Effective Since January 2026 California On Jan. 1, 2026, paid sick leave under the California Healthy Workplaces, Healthy Families Act began covering leave for judicial proceedings related to certain serious crimes of which the employee or the employee's family member was a victim. The proceedings include, but are not limited to, delinquency proceedings, post-arrest release decisions, pleas, sentencings, post-conviction release decisions, and any proceeding where a right of that person is an issue. Colorado Also on Jan. 1, 2026, an amendment to the Colorado paid family and medical leave (FAMLI) program went into effect, requiring an extra 12 weeks of partially compensated leave for parents with a baby in a neonatal intensive care unit (NICU). The FAMLI program already provided 12 weeks of paid leave for specified family and medical reasons. FAMLI leave is job-protected for workers who have been employed with their current employer for at least 180 days before taking leave. Providing leave for parents of NICU babies is a developing mini-trend in state employee leave laws. A similar measure is set to take effect later this year in Illinois. Connecticut Effective Jan. 1, 2026, paid sick leave in Connecticut began applying to employers with 11 or more employees in the state, as part of a phased-in expansion of paid sick leave coverage that began last year. By 2027, Connecticut employers of all sizes will be under the law's mandate. Before the expansion, coverage applied only to employers with 50 employees or more and certain service workers. The increase in leave under Connecticut's paid sick leave law can be seen as part of a trend of expanding older employee leave laws to match newer, more generous leave laws in other states. Delaware Benefits became available under Delaware's paid family and medical leave program (Delaware Paid Leave) on Jan. 1, 2026. Eligible workers are entitled to up to 12 weeks of paid parental leave annually and six weeks of paid medical leave every two years under the program, with a combined limit of 12 weeks of leave per year. Workers are compensated at a rate of up to 80% of their weekly wages. Leave is job-protected. Employers with 10 or more employees working in Delaware are covered; for employers with 10-24 employees, only the parental leave requirements of the law apply. Employees are eligible for leave if they have been employed for 12 months by their current employer, worked 1,250 hours during that time and report primarily to a worksite in Delaware, meaning they earn at least 60% of their wages while physically working in the state. The program is funded through payroll deductions split evenly between employers and employees. Minnesota Effective Jan. 1, 2026, Minnesota's paid family and medical leave program (Minnesota Paid Leave) went into effect for virtually all Minnesota employers, providing 12 weeks of medical and 12 weeks of family leave per year—capped at 20 combined weeks annually. Workers are eligible if they meet minimal income requirements and work in Minnesota for at least 50% of the year. Leave under the program is job-protected for employees who have worked for their employer for 90 days. Funding is split between employers and employees, but employers with 30 employees or fewer are eligible for a reduced premium if their employees' average wage is no more than 150% of the state average wage. New York On Feb. 22, 2026, an expansion of New York City's Earned Safe and Sick Time Act went into effect, adding new reasons for leave under the law and requiring employers to provide an additional 32 hours of up-front unpaid time off for every employee at the start of employment and the beginning of each calendar year. At the same time, Mayor Zohran Mamdani announced an "enforcement blitz" for the law, which the administration is now calling the Protected Time Off Law. The amended law effectively replaces the city's Temporary Schedule Change Act, which required employers to accommodate two schedule changes per year for employees for any of a number of specified "personal events," which are now included as permitted reasons for leave under the Protected Time Off Law. Oregon On Jan. 1, 2026, Oregon employees were allowed to begin using their accrued sick time under state law for blood donation. This expansion is in line with a trend in leave laws nationwide to allow time off for blood, organ and bone marrow donors. Rhode Island On Jan. 1, 2026, the permitted annual leave amount under the state's temporary caregiving insurance program (effectively paid family leave) was expanded to eight weeks from seven. This change is in line with the expansion of other older leave laws to match the benefits of newer, more generous leave laws in other states. Washington On Jan. 1, 2026, significant amendments to Washington's paid family and medical leave law took effect. Notable changes included: Expanding job restoration rights to employees who have worked for their employer for 180 days (replacing work tenure requirements of 12 months and 1,250 hours); Expanding job restoration rights to employees of employers with 25 (instead of 50) employees or more; Discouraging leave stacking by allowing employers to count an employee's leave under the federal Family and Medical Leave Act against the employee's state paid family and medical leave job protection; Requiring employers to maintain health insurance during any paid family and medical leave for which the employee is entitled to job protection; and Adding new employer notice obligations related to job restoration. In addition, also effective Jan. 1, 2026, the Washington Domestic Violence Leave Act added reasonable leave for victims of hate crimes, following a trend seen in domestic violence leave laws in other states. Upcoming State Leave Law Changes Illinois Effective June 1, 2026, all employers with at least 16 employees must provide unpaid leave to parents whose child is a patient in a NICU. The amount of leave required differs depending on the size of the employer, as follows: Employers with 16-50 employees: Up to 10 days of leave; and Employers with 51 employees or more: Up to 20 days of leave. Leave may be intermittent or continuous, but the employer may require that it be used in increments of at least two hours. Employees must exhaust any available FMLA leave before using the new leave. They may substitute any paid or unpaid leave to which they are entitled. Employers may require reasonable verification of the child's NICU stay. Maine On May 1, 2026, benefits begin under the state's new paid family and medical leave program, providing employees with up to 12 weeks of partially compensated leave per year. Employees who have earned at least six times the state average weekly wage during a base period are eligible for coverage. Individuals who are self-employed may opt into the program. Leave is job-protected for employees who have worked for at least 120 days. Employees and employers with at least 15 employees contribute equally to the program, through payroll taxes that began Jan. 1, 2025. The Maine Department of Labor began accepting applications on March 30, 2026, for leave beginning on or after May 1, 2026. New Jersey Effective July 17, 2026, unpaid, job-protected leave under the New Jersey Family Leave Act will expand to cover private employers with 15 employees (previously 30). Additionally, eligibility requirements for employees under the Act will be reduced: Leave will be available to employees who have worked for their employer for only three months (instead of 12), and for 250 hours (instead of 1,000) during the 12 months before leave. The act provides employees with family leave of up to 12 weeks every two years, for reasons such as baby bonding and caring for a family member with a serious health condition. Also on July 17, amendments to the state's temporary disability insurance (TDI) and family leave insurance (FLI) programs take effect that appear to require job protection for employees receiving TDI or FLI benefits. Most New Jersey workers are covered by TDI/FLI if they meet earnings and work tenure requirements. The programs have historically been cash benefit-only programs that did not provide a job-protected right to leave. Employees may receive up to 26 weeks per year of TDI for nonwork-related illnesses or injuries, including pregnancy, that prevent them from working. FLI benefits are capped at 12 weeks per year and are available for leave for reasons similar to those under the FLA, plus for specific purposes related to domestic violence and sexual assault. Employer Takeaways Employers operating in the states mentioned above should become familiar with any employee leave changes or new leave rights that apply to them or their employees. Employers should ensure that any necessary updates to their policies or procedures related to these changes are made in a timely manner. Supervisors and managers should also be made aware of changes to ensure compliance. In addition, employers in states with new programs, like Delaware, Minnesota and Maine, should watch for new guidance and regulations issued by the state to help implement the programs. New Jersey employers should similarly stay alert for officialstate guidance on new job protection rights for employee recipients of TDI and FLI benefits. Links and Resources Delaware Paid Leave website Minnesota Paid Leave website Maine Paid Family and Medical Leave website California Department of Industrial Relations FAQs on California Paid Sick Leave

Heat-related injury and illness are occupational hazards that impact many industries and affect millions of employees annually. Heat stress occurs when an individual’s body accumulates more heat than it can dissipate. The increase in body temperature can result from several factors, including metabolic heat from physical exertion, workplace conditions, and clothing or personal protective equipment (PPE) that make it difficult to release heat from the body. Indoor work environments can create hot atmospheric conditions similar to outdoor environments and, in some cases, exceed outdoor temperatures. Types of heat-related illnesses include heat stroke, heat exhaustion, rhabdomyolysis, heat syncope, and heat-related cramps and rashes. Industries commonly associated with indoor heat exposure include, but are not limited to, commercial kitchens, manufacturing, warehousing, laundry and dry-cleaning services, and greenhouses. Industrial equipment, ovens and furnaces generate significant heat within enclosed spaces, and solar radiation striking a facility’s roof and walls can push interior temperatures to dangerous levels. High humidity amplifies the heat index, and poor ventilation makes cooling work areas difficult. Without adequate airflow, access to hydration, and air-conditioned break areas, these environments can become dangerously hot. Beyond the human cost, employers face real regulatory exposure. While a permanent federal heat standard remains uncertain under the current administration, OSHA’s National Emphasis Program on heat-related hazards has been extended through April 2031, and several states, including California, Minnesota, Oregon and Maryland, have already adopted their own indoor heat illness prevention standards. Regardless of where federal rulemaking lands, OSHA can and does cite employers under the General Duty Clause for failing to protect workers from heat hazards. The good news is that heat-related injury and illness are largely preventable and, with strong controls and procedures in place, can be managed in your operation. Consider these seven best practices to manage heat stress in your workplace. Implement a Heat-related Injury and Illness Prevention Program Developing a formal indoor heat-related injury and illness prevention program is a best practice, and for many organizations, simply taking the time to establish one is a significant step forward. A structured program signals a genuine organizational commitment to employee safety and can provide several tangible benefits, including preventing heat-related injuries and illnesses, reducing workers’ compensation claims, lowering absenteeism and turnover, and maintaining a productive workforce. Employees who see their organization actively working to keep them safe tend to be more engaged, loyal and productive. Because indoor work environments vary widely, the program should be tailored to your specific operation, accounting for your facility’s characteristics, the nature of the work performed, and the types of heat relief available to employees. A one-size-fits-all approach is unlikely to address the real conditions your workforce faces. Once developed, formalizing the program in writing and communicating it directly to employees ensures that everyone understands the practices in place and knows what to do when heat-related risks arise. New employees should be made aware of heat-related hazards and the various reliefs during orientation, and experienced employees should be reminded annually. Consider delivering heat-awareness training in the spring, before the hotter months arrive, so the information stays fresh when employees need it most. A well-built program is the foundation, but it only delivers results when supported by consistent, day-to-day practices. The remaining six best practices outlined in this document support the program’s mission. Monitor and Record Temperature Consistent temperature monitoring is your first line of defense in identifying when and where employees face elevated risk. Effective heat management starts with accurate data. Place thermometers in the hottest work areas of your facility and at multiple points throughout. An option to consider is Wi-Fi-enabled thermometers, which allow supervisors to monitor conditions in real time from laptops, tablets or smartphones, enabling faster response when temperatures climb. Use heat index readings rather than raw temperature alone. The heat index accounts for humidity and better reflects what workers actually experience, making it a more reliable trigger for interventions such as work-rest cycles, job rotations or temporary work stoppages. Establish clear internal thresholds, such as action levels tied to heat index ranges, so supervisors know when to intervene and employees know what to expect. Establish a Work-rest Cycle to Reduce Excessive Heat Exposure Effective work-rest cycles are driven by two key factors: the heat index in the work area and the intensity of work being performed. Work intensity is generally classified as light, moderate or heavy. While no regulatory standard exists for work-rest cycles, the National Institute for Occupational Safety and Health (NIOSH) provides general guidance as a useful starting point, though applicability will vary by operation. For more information, refer to NIOSH’s work-rest cycle guidance. If work-rest cycles are not feasible within your operation (or required within your state), job rotation is an effective alternative. Limit prolonged exposure to the hottest areas of your facility by rotating employees throughout the shift. In facilities with more uniform temperatures, consider rotating job tasks by light, moderate or heavy classifications to manage overall physical strain. Make Hydration Stations Readily Available Maintaining adequate hydration is critical to preventing heat-related injury and illness. Provide designated hydration stations stocked with water and electrolyte replenishment options, such as sports drinks or electrolyte packets. Replacing lost fluids and electrolytes supports healthy blood volume, circulation and the body’s ability to regulate temperature through sweating. Even mild dehydration can impair judgment, coordination and work performance, increasing the risk of both heat illness and workplace incidents. Ensure fluids are consistently accessible throughout your facility, particularly during warmer months, to safeguard employee health and sustain operational productivity. Equally important is actively encouraging employees to hydrate regularly. Workers may delay drinking fluids due to workload demands, habits or simply because they do not recognize early signs of dehydration. Supervisors play a key role here: building hydration reminders into shift routines, toolbox talks or team check-ins help reinforce the message and normalize taking breaks before thirst sets in. A workforce that is reminded and empowered to stay hydrated is better protected and more productive. Provide Cooling PPE Cooling PPE is an effective way to reduce the risk of heat-related illness and can be tailored to your operation’s specific needs. When selecting cooling PPE, consider both the temperature conditions within your facility and the physical intensity of the work being performed, as these factors will determine the most appropriate and cost-effective solutions. Available options include, but are not limited to: Cooling towels and bandanas—Lightweight, low-cost options suitable for general heat relief Moisture-wicking base layers—Help manage perspiration and maintain comfort during prolonged physical activity Ice/gel cooling vests—Provide active cooling for workers in high-heat environments or performing heavy work Cooling sleeves—Offer targeted protection for the arms while maintaining freedom of movement Evaluating your facility’s specific heat hazards will help ensure the selected PPE provides meaningful protection while remaining practical for day-to-day operations. Make Climate-controlled Break Rooms Accessible Access to climate-controlled rest areas is an essential component of an effective heat management program. Providing a cool environment during breaks allows the body to dissipate heat and restore a healthy core temperature, reducing cumulative heat stress throughout a shift. In high-heat work environments, climate-controlled rest areas should be accessible during every work-rest cycle. They should ideally be located close to work areas so employees can reach them quickly without their rest time being consumed by travel. Consistent access to cool recovery spaces reduces the risk of heat exhaustion and allows employees to return to work refreshed and alert. Develop an Acclimatization Period for New Hires and Returning Workers Heat acclimatization is the gradual introduction of employees to heat exposure, allowing their bodies to physiologically adapt over time. It is particularly important for new hires who have not yet developed the heat tolerance required by their role, but it is not exclusive to them. Employees returning from extended absences due to illness, vacation or leave should undergo a similar reintroduction process, as heat tolerance can diminish after just a few days away from the work environment. As with work-rest cycles, NIOSH and the Centers for Disease Control and Prevention provide a recommended acclimatization schedule to guide this process. While applicability may vary by operation, it serves as a practical framework for reducing risk during the adjustment period. For more information, refer to the NIOSH acclimatization schedule. Take Action Heat-related injury and illness are serious occupational hazards, but with the right program in place, they are largely preventable. By monitoring temperatures, establishing work-rest cycles, maintaining hydration stations, providing cooling PPE, ensuring access to climate-controlled rest areas, and implementing acclimatization protocols, organizations can meaningfully reduce the risk of heat-related harm to their workforce. Start by evaluating your current practices against these seven best practices and take the necessary steps to build a safer, healthier work environment for everyone in your facility.

Project delays and cost overruns are common in the construction sector, as project delivery depends on many moving parts and can be disrupted by factors such as adverse weather, economic volatility, and shifting scope and design requirements. When projects are delayed or exceed their initial budget, the consequences can extend beyond the immediate cost or schedule impact and include legal disputes, reputational damage and wider financial losses. To reduce their exposure, construction firms should understand the common causes of project delays and cost overruns and adopt appropriate risk mitigation measures to reduce their impact. Defining the Problem A schedule delay arises when construction firms fail to meet planned project milestones (e.g., planning approval, commencement of construction, and project completion) on time. Delays can occur at any stage of the project lifecycle, from early design through to final delivery. Similarly, cost overruns—where the actual cost of a construction project exceeds its estimated cost—can arise at any point. While distinct, delays and cost overruns are closely interconnected and rarely occur in isolation. A range of factors, both within and beyond the control of project teams, can disrupt progress, making effective planning and ongoing risk management essential. Key Risks Many factors can cause project delays and cost overruns. Common risk drivers include the following: Inaccurate estimating and scheduling—Overly optimistic timelines, underestimated budgets or unrealistic assumptions about resource availability can place projects under strain from the outset, leaving little margin for error and increasing the likelihood of delays and higher project costs. Scope creep and change orders—Changes to project scope, whether driven by clients or unforeseen circumstances, can disrupt schedules and inflate costs. Incremental changes can accumulate into significant overruns without strict controls. Supply chain volatility—Disruptions in the supply chain, including those driven by geopolitical instability, economic volatility or logistical challenges, can cause fluctuations in material availability and pricing, delaying procurement and potentially increasing overall project costs. External and force majeure events— Severe weather events, natural disasters, utility outages, geopolitical instability, public health events and broader economic disruptions can interrupt construction activities, restrict site access, reduce workforce availability, disrupt project sequencing and increase project costs. These events may also create scheduling uncertainty and require adjustments to contingency planning and resource allocation. Permitting and regulatory delays—Delays in obtaining permits, securing zoning and planning approvals, completing environmental reviews, undergoing inspections or adapting to changing regulatory requirements can disrupt project timelines, delay construction activities, and increase project costs through extended schedules, redesign efforts and additional compliance obligations. Labor shortages—A constrained labor market and limited investment in internal upskilling can reduce the availability of skilled workers, lower productivity, increase wage costs and lead to delays. Ineffective project controls—Weak project controls and poor use of scheduling techniques (e.g., the Critical Path Method) can limit project visibility and result in critical activities being poorly prioritized, increasing the risk of delays and cost overruns. Additional contributing factors include poor communication between stakeholders and weak governance (e.g., ambiguous roles and unclear ownership of responsibilities), which may further hinder project delivery. Understanding Risk Exposure Regardless of their cause, project delays and cost overruns can expose organizations to a range of risks, including the following: Financial risk—Even moderate delays on projects can potentially lead to multimillion-dollar cost increases, particularly given that schedule delays are common. Extended site overheads, increased labor requirements and prolonged equipment use often drive these additional costs. As costs rise, margins quickly erode, especially under fixed-price contracts, where the contractor typically absorbs the additional costs. External disruption events may also generate indirect costs through idle labor, equipment downtime, remobilization expenses, acceleration measures and extended project overheads. Contractual and legal risk—Ambiguities in contracts can lead to disputes between project stakeholders, potentially resulting in claims and litigation. Liquidated-damage provisions in contracts can leave firms liable to predefined penalties if project timelines aren’t met, further increasing contractual exposure. Financing and cash flow risk—Extended timelines may strain cash flow, and contractors may need to take on additional borrowing to sustain operations, reducing overall project returns. Lenders could view over-budget or delayed projects as higher risk, potentially leading to less favorable financing terms and further squeezing profit margins. Reputational risk—Consistent project delays or cost overruns can erode client trust and damage relationships with lenders, suppliers and other stakeholders. Over time, this can make it more difficult to secure future contracts, impacting revenue and long-term growth potential. Risk Mitigation Measures To reduce their exposure to project delays and cost overruns, organizations should consider the following risk mitigation measures: Invest in robust pre-construction planning. Organizations should take a structured approach to project planning from the outset, involving key stakeholders in the cost and schedule estimating process to improve accuracy and align expectations. They should also undertake robust scenario planning to identify potential risks and develop appropriate contingency measures. Establish schedule and cost contingencies. Organizations should incorporate appropriate schedule float and cost contingency reserves into project plans to improve resilience against uncertainty. They should also define governance processes for contingency use, including approval thresholds, trigger events, and procedures for monitoring and releasing contingency throughout the project lifecycle. Use data-driven scheduling and cost tracking. Organizations should leverage digital tools and analytics platforms to enable real-time tracking, improve visibility into project performance, and identify deviations early so corrective action can be taken before issues escalate. Establish strict change-order controls. Organizations should implement a clear change management process that defines procedures for reviewing, approving, and documenting project changes to help prevent scope creep and ensure that impacts on cost, schedule, and quality are effectively managed. Align procurement and contract structure to project risk profile. Organizations should select procurement approaches and contract structures that align with project complexity, commercial objectives, and the intended allocation of cost and schedule risk among project stakeholders. Mechanisms such as fixed-price or cost-plus arrangements, escalation clauses, shared contingency provisions and performance-based incentives can help manage exposure to cost increases, schedule uncertainty and unforeseen project changes. Diversify suppliers and build contingencies. Organizations should build strong relationships with suppliers, avoid relying on a single supplier and maintain buffer stocks to mitigate supply chain risks. Build resilience into project delivery. Organizations should establish business continuity and emergency response plans, monitor external risk indicators, and develop alternative sourcing and site operating procedures to improve resilience against disruptive external events. Strengthen project management capabilities. Organizations should train project teams in decision-making, communication and financial management to enhance overall project management capability and improve delivery outcomes. Conclusion Delivering projects on time and within budget can enhance a firm’s reputation and its ability to compete for future work. Organizations that maintain strong control over planning, execution and risk management may be best positioned to manage uncertainty and keep projects on track. Contact your Cottingham & Butler rep today for additional risk management guidance.

OSHA recently published a proposed rule to remove the Nov. 18, 2036, deadline in its Walking-Working Surfaces standard. This standard would have required all fixed ladders extending more than 24 feet above a lower level to be equipped with personal fall arrest systems or ladder safety systems by this deadline. Background One of the more notable changes introduced by the 2016 rule was a phased-out requirement for cages and wells on fixed ladders, a traditional method of fall protection on tall ladders. While cages and wells give workers a sense of enclosure, research has shown that they provide little actual protection in the event of a fall and can even complicate rescue operations. In their place, the 2016 rule required employers to transition to personal fall arrest systems or ladder safety systems, which are designed to actively stop or arrest a fall rather than simply surround the worker. Employers were given a lengthy transition window, until November 2036, to retrofit existing fixed ladders extending more than 24 feet above a lower level. In July 2025, OSHA received a letter from industry groups petitioning to repeal the requirement for personal fall arrest systems on all fixed ladders extending more than 24 feet above a lower level. The petition requested that employers be allowed to continue using cages and wells or, alternatively, that such systems be permitted while requiring personal fall arrest or ladder safety systems only on ladders installed or modified after a new final rule is issued. New Proposed Rule The new proposed rule, published on April 6, 2026, is intended to provide greater compliance flexibility for employers by removing the deadline for installing personal fall arrest systems or ladder safety systems on all fixed ladders that extend more than 24 feet above a lower level. Employers would still be required to install safety systems on any new ladders or replacements. The change would allow employers to update ladders when they reach the end of their service life, helping to lower costs while maintaining safety standards. What’s Next? Employers should continue to comply with current OSHA standards, particularly ensuring that all new or replacement ladders are equipped with fall arrest or ladder safety systems. Rather than adhering to the 2036 deadline, organizations should consider reassessing long-term retrofit plans and aligning future upgrades with lifespan and risk-based evaluations. OSHA is seeking comments on the proposed rule. Employers may submit comments on or before June 5, 2026, and they should monitor the rulemaking process to adjust compliance strategies once a final rule is issued.

Construction sites are often considered prime targets for theft and vandalism, largely due to their open layouts, minimal after-hours supervision, and the range of valuable materials, tools and equipment stored on-site. According to the National Insurance Crime Bureau, construction site theft in the United States costs the industry between $300 million and $1 billion annually, with more than 11,000 pieces of construction equipment being stolen each year. What’s worse, less than 25% of stolen items are ever recovered. Construction site theft and vandalism can cause both direct and indirect losses. In addition to requiring construction companies to replace or repair missing and damaged materials, tools and equipment on-site, these incidents may also cause prolonged business disruptions and project delays during the recovery process. In some cases, worksite theft and vandalism may even result in insurance challenges, reduced stakeholder confidence and lasting reputational damage, ultimately threatening construction companies’ ability to secure future projects and maintain continued financial stability. Fortunately, there are several steps construction companies can take to better secure their worksites, thereby minimizing criminal activity and related losses. A layered defense strategy—which entails using a combination of physical, technical and environmental security solutions—is the best way to accomplish this feat. This article provides more information on the cost of construction site theft and vandalism and outlines associated layered defense mechanisms. The Cost of Theft and Vandalism Between the lack of consistent oversight and the presence of high-value, easily transportable materials and equipment at construction sites, these locations are attractive targets for criminal activity and mischief. While acts of vandalism are generally the result of criminals looking to cause chaos through malicious property damage, mark their territory with graffiti or simply engage in thrill-seeking behavior, theft incidents usually stem from criminals wanting to resell stolen items in alternative marketplaces for their own financial gain. According to the latest research from surveillance company SentryPODS, the average construction site theft incident costs between $6,000 and $30,000, depending on the type of materials and equipment stolen. Some of the most commonly stolen items from construction sites are power tools, small machinery, lumber, aluminum, and copper wire and piping. In fact, the U.S. Department of Energy confirmed that $1 billion worth of copper is stolen from construction sites each year. There are several direct, tangible losses that construction companies may incur from worksite theft and vandalism. These expenses include replacements and temporary rentals for stolen materials and equipment, repairs for damaged property and site infrastructure, deductibles for related insurance claims, and elevated premiums going forward. Additionally, there are indirect losses that, although harder to quantify, often exceed the total impact of direct losses. These costs include project delays and overruns, subcontractor disruptions, lost productivity, contract disputes and legal penalties, diminished employee morale and higher turnover, reduced client loyalty, and administrative and investigative efforts related to restoring missing or damaged property. Industry experts assert that for every $1 in direct theft and vandalism losses, indirect costs can add $3 to $10 to the overall impact and complexity of a construction project. Layered Defense Mechanisms Given the serious losses that can result from worksite theft and vandalism, it’s imperative that construction companies implement effective risk management practices. A layered defense strategy—also called a defense-in-depth approach— can help protect against criminal activity at construction sites by emphasizing four key pillars: deter, detect, delay and deny. These pillars promote the use of physical, technical and environmental barriers to discourage theft and vandalism attempts, swiftly identify potential perpetrators and slow their progress, and block access to critical assets. Here are some key security solutions for construction companies to include in a layered defense strategy: Perimeter safeguards—Construction sites should be surrounded with proper fencing, such as chain-link panels or anti-climb welded wire panels. Site perimeters should also be secured with heavy-duty locking mechanisms and gates equipped with advanced tracking technology, namely biometric identifiers and radio frequency identification portals, to help identify people and property entering and leaving the area. Posting clear warning signage (e.g., “Trespassers will be prosecuted” placards) may help further deter opportunistic thieves and vandals. Surveillance and lighting—Smart cameras and motion sensor lighting should be placed at all construction site entry points, storage areas and equipment zones to maximize visibility and eliminate potential blind spots. It’s best to use surveillance systems with analytics powered by artificial intelligence to proactively identify suspicious behaviors rather than record incidents once they occur. Access controls and asset protection—Employees should be required to use keycards or other types of advanced access control systems to log worksite entry and their use of project materials, tools and equipment. All construction machinery should be equipped with GPS tracking solutions and engraved with unique codes to facilitate easy identification in the event of theft and prevent unauthorized resale. Portable tools and materials should be stored in locked containers, with designated staff responsible for conducting routine inventory audits to detect theft as quickly as possible. Security personnel and law enforcement—Hiring dedicated security personnel at construction sites, specifically overnight and weekend guards, can ensure consistent supervision and prevent criminals from taking advantage of empty or unmanned areas. In most cases, it can be useful to implement a hybrid model that combines live remote monitoring and physical patrolling of the worksite to help balance security costs and coverage. Furthermore, building strong relationships with local authorities can provide additional insight into effective security measures and promote smooth response efforts amid theft and vandalism incidents. Employee training and workplace culture—Employees should be trained during the onboarding process and throughout their tenure on the layered defense strategy and related worksite security controls to ensure they can play their part in combatting criminal activity on the job. Conducting routine emergency drills that explicitly address theft and vandalism scenarios can help staff build confidence in this strategy and respond accordingly when incidents occur. Employees should also be encouraged to report suspicious behaviors and rewarded for demonstrating an ongoing commitment to site security. Conclusion Theft and vandalism will always pose a risk on construction sites, but these incidents can be prevented with the right strategy. Construction companies that prioritize layered defense mechanisms are likely to experience reduced criminal activity and associated losses. In an industry where margins are tight and schedules are unforgiving, proactive site security isn’t an overhead expense; it’s a worthwhile investment. Contact us today for additional industry-specific risk management guidance.

Construction projects are complex, requiring considerable coordination of people, materials, equipment and schedules, increasing contractors’ exposure to operational, financial and liability risks. While insurance can help manage the financial impact of unexpected events, it is most effective as part of a broader risk management approach that focuses on reducing key exposures before losses occur. The article discusses five risks every construction contractor should be aware of, as well as coverage and risk management strategies. Worksite Injuries and Worker Safety Worksite injuries and fatalities are among the most significant risks in construction. According to OSHA, four common causes are falls, caught-in or -between hazards, struck-by events and electrocution. Beyond the human impact, such events can increase workers’ compensation claims, delay projects and result in regulatory fines. While workers’ compensation insurance can provide coverage for employee medical expenses and wage replacement, repeated safety incidents may increase premiums and limit access to favorable terms. To reduce these risks, contractors should design work processes to eliminate hazards where possible and foster a strong culture of safety, including the consistent use of appropriate personal protective equipment. These efforts should be supported by robust workplace training that addresses hazards, including working at height, operating heavy equipment and working safely around vehicles and machinery. Third-party Liability and Property Damage Construction activities can cause unintended damage to people and property. For instance, digging may damage underground utilities or destabilize neighboring buildings, while site activities may injure passersby. Liability claims can arise months or even years after completion if defective work later causes injury or property damage. To reduce third-party liability exposures, contractors should assess preconstruction sites to identify nearby properties, underground services and public access points and implement controls (e.g., barriers, signage and traffic management). Commercial general liability (CGL) insurance can help financially protect contractors against third-party liability and bodily injury claims. Still, contractors should ensure their policy includes completed operations coverage for claims arising after work is finished. Completed operations liability can also arise from faulty work performed by a subcontractor. As such, many construction contracts include indemnity provisions that require subcontractors to assume responsibility for claims arising from their work. Equipment and Tools Loss or Breakdown Construction equipment is often moved between job sites or stored in temporary locations, leaving it vulnerable to theft, vandalism and other risks (e.g., fire). While commercial property insurance typically provides coverage for equipment kept at a contractor’s primary business location, coverage may not apply once equipment is transported off-site. Contractors can reduce loss frequency by securing equipment when not in use and using GPS tracking or tagging for high-value machinery. Contractors’ equipment coverage under an inland marine policy can help financially protect owned, leased or rented equipment while it is in transit or stored off-site. Since unexpected equipment breakdowns can halt critical activities and delay projects, contractors should also implement routine inspections and preventive maintenance programs to proactively identify issues before mechanical failures occur. Subcontractor and Contractual Risk Construction contractors can be held liable for defects in work performed by subcontractors, a significant risk given the industry’s reliance on subcontracted labor. Accurate language in contracts is essential to manage this exposure. Specifically, hold-harmless or indemnification provisions can be added to construction contracts requiring subcontractors to assume responsibility for claims arising from their work. Contractors can also be named as additional insureds on a subcontractor’s CGL policy, meaning that the subcontractor’s policy may respond first, thereby helping to protect the contractor’s own limits and loss history. Contractors should review subcontractors’ certificates of insurance and verify required policy endorsements before entering into an agreement. For larger, complex projects, wrap-up insurance programs (e.g., owner-controlled or contractor-controlled) can provide centralized coverage for multiple project parties under a single policy. Project Delays and Financial Exposures Construction schedules can be affected by numerous circumstances, including supply chain disruptions, weather, permit delays and errors. Such events can extend delivery timelines and create financial exposure for both contractors and project owners. To manage this exposure and reduce uncertainty, contracts often include liquidated damages clauses and penalty provisions that predetermine the amounts payable to project owners if completion is delayed. Project owners may also require contractors to purchase surety bonds to financially guarantee certain contractual obligations. Contractors should proactively reduce delay and cost risks through measures such as strengthening supply chain visibility and assigning clear accountability for material oversight. From an insurance perspective, professional indemnity insurance can provide coverage for losses arising from errors in a contractor’s professional services, while builders’ risk insurance can provide coverage for the physical damage to or loss of buildings, materials and equipment during construction from risks such as fire, theft or vandalism. Conclusion Construction projects carry inherent risks, and no two projects are the same. To reduce exposures, contractors should regularly review their insurance programs with their brokers and implement proactive risk management measures to protect people, projects and profitability.

Commitment to Lifelong Learning The Cottingham & Butler scholarship award program began in the late ‘90s as a way for the Butler family to support students who wanted to further their education. Our motto at C&B is ‘Better Every Day’, and this scholarship is way to help students take the next step in their journey of lifelong learning. To date, over 360 high school seniors have received this scholarship for their future education and over $1 Million has been given! C&B Scholarship This scholarship is open to the children of C&B employees from all offices and home locations. Graduating high school seniors submit their application, along with an essay, to our team. Applications are reviewed by the Butler family, and then the student is awarded a scholarship to their 2- or 4-year educational institute. 2026 Recipients & Event This year, we had 31 recipients who will be attending 18 different schools this fall. Recipients near Dubuque were invited to join us for a lunch on the Roshek Rooftop to receive their award, hear a few words from Andy Butler, Executive Chair, and hear the story from a past recipient of the scholarship. “I'm currently studying nursing at the University of Iowa,” said Anna Roling, 2025 scholarship recipient. “Receiving this scholarship had such a positive impact on my first year of college. Thank you to C&B for continuing to support students like me. Your generosity truly makes a difference and helps students focus on their goals and future opportunities.” Impacting Generations There are many teammates who work here that have received the scholarship, as they have followed in the footsteps of their parents who worked in insurance at Cottingham & Butler. We’ve even began giving to the second generation. At this year’s event, Landon McKay received a scholarship to help in his journey at UW-Platteville, because of his father, Joel, who works in our Transportation department. In 1999, Joel received the C&B scholarship because his father, Dick, worked for us. “The scholarship program fits the company’s belief in lifelong learning,” said Joel McKay, Vice Presient. “It was very satisfying for me to see my son receiving the scholarship just as it was for my dad over 25 years ago. It is a full-circle moment that our family has been part of Cottingham & Butler long enough to see a second generation receiving the same scholarship that I did back in 1999.”

An executive briefing on the economic and geopolitical shifts defining 2026, and the decisions they put in front of your business. The economy isn't behaving the way the headlines suggest — and that gap is where risk and opportunity live. This outlook explains what's really driving 2026 and what it means for your business, distilled from a May 2026 Cottingham & Butler CEO Summit session with Shailesh Kumar, who leads The Hartford's Global Insights Research Center and has advised at the U.S. Treasury and Eurasia Group. What's inside: Why consumer spending holds up despite deep pessimism — and the vulnerability that could reverse it The interest-rate reset, and why ultra-cheap money isn't coming back AI as an economic engine: how much it's really driving growth, and where it could break. The demographic shift no policy can reverse, and what an aging workforce means for hiring and growth Tariffs and a fracturing world order: what the headline numbers get wrong Five executive takeaways for your people, your footprint, and the year ahead "You can change tariffs and you can change monetary policy — but you can't change demographics. It's the trend running underneath everything else." Download the Full Outlook Get the full outlook and connect with your Cottingham & Butler representative on the steps worth taking before these forces reach your bottom line.

In our most recent webinar, "Covered or Exposed? What Your Business Doesn't Know About Cyber Risk," Cottingham & Butler and UnRavl cyber specialists pulled back the curtain on the misconceptions and blind spots that leave businesses vulnerable and underinsured. Whether you've had a cyber policy for years or you're evaluating coverage for the first time, this session gave attendees the clarity to make smarter decisions before an incident forces your hand. Key takeaways and insights... Application Accuracy Is Your First Line of Defense Get your application wrong and your claim can be denied entirely — regardless of how large your loss is. Accuracy isn't optional; it's the foundation of your coverage. Attackers Are Patient — Proactive Detection Is Not Optional The breach you think didn't happen may already be in progress. With an average dwell time of 197 days, waiting for alerts is not a strategy. A Response Plan on Paper Is No Plan at All Know who to call, what not to do, and what your policy requires — before ransomware hits. Practice your plan or you won't execute it under pressure. Compliance Satisfies Auditors — Security Protects Your Business Passing your SOC 2 or HIPAA audit is the minimum bar. Real protection requires continuous monitoring, testing, and controls that go beyond the checklist. The Cloud Shifts Responsibility — It Doesn't Eliminate It You own your data's security at the application and identity layer. No cloud provider agreement changes your regulatory obligations or your exposure. Click here to the view the presentation.