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Discover how a strategic insurance partnership and industry expertise transformed a beer distributor’s inadequate coverage into a comprehensive risk management program. Key Wins Strategically Avoided 20% Market Increase Proactively and strategically fought to combat rising standard market costs 35% Reduction in Insurance Premium Reduced property & casualty insurance spend – saving $375,000 The Situation One month before renewal, an Illinois beer distributor learned their insurance spend was increasing 15-20% for the third consecutive year. They were frustrated with accepting "standard market rate increases" year after year and wanted a different approach. Why They Needed Change The challenge was clear: through no fault of their own, the insured found their insurance program on autopilot. Without proactive strategies to combat rising costs, comfortability with the status quo was significantly impacting their bottom line. They needed a broker who specialized in their class of business, knew the marketplace, and would actively fight for better terms rather than simply passing along market increases. The result:  immediate positive financial impact, enhanced coverage, and a strong position for the client for future renewals. The Cottingham & Butler Approach Coverage Enhancements Increased business interruption protection by $6.5M with minimal premium impact, aligning the client with industry benchmarks Waived coinsurance on property values, providing better protection flexibility Composite auto rating, streamlining administrative processes when adding/removing vehicles Cost Reductions & Administrative Improvements Secured $10M umbrella limit for contractual requirements, with the primary insurer offering a $5M primary umbrella limit Eliminated work comp deductible, improving cash flow Significant premium savings driven primarily by inflated auto and workers' compensation premiums Telling the Correct Story Matters While other brokers promised  rate reduction at next renewal if the client implemented telematics, Cottingham & Butler successfully communicated the insured's firm commitment to implementing telematics in 2026 to the marketplace. This proactive storytelling positioned them as a partner committed to continuous improvement, earning immediate rate relief as carriers sought to partner with an insured dedicated to risk reduction.

The employee benefits landscape is facing a perfect storm in 2026. Healthcare costs are accelerating, landmark legislation is reshaping plan design, and employees are demanding more from their employers than ever before. At the same time, AI is fundamentally changing how HR teams operate.   Our 2026 Employee Benefits Trends Report breaks down the forces shaping the year ahead — and gives employers a clear roadmap for staying compliant, competitive, and cost-effective. Healthcare Costs Are Rising — Here's Why Industry projections put healthcare cost increases at 6.5%–10% in 2026. That's not a one-time spike — it's the result of compounding pressures that employers can't afford to ignore.   Key drivers include: GLP-1 medications (like Ozempic) — prescriptions tripled since 2020, costing ~$1,000/month per person Specialty drugs — comprising ~50% of total drug spend, with ~80% of 2025 FDA approvals in this category Cancer care — increasing among working-age individuals with treatments costing hundreds of thousands per patient Healthcare labor shortages — labor accounts for 56% of hospital expenses, driving up reimbursement rates Chronic conditions — affecting 6 in 10 adults and accounting for 90% of the nation’s $4.9 trillion annual healthcare costs   The good news: informed employers who act proactively can manage financial impact without gutting their benefits. Our report outlines five employer strategies — from specialty pharmacy management to alternative funding models — that are making a real difference.   Major Regulatory Changes Are Already in Effect 2026 is one of the most significant years for benefits compliance in recent memory, driven primarily by the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025.   Here's a snapshot of what's changed: HSA Expansion: Telehealth is now permanently covered pre-deductible for HDHPs. Direct Primary Care (DPC) integration is now permitted. Dependent Care FSAs: Limits increased from $5,000 to $7,500 — the first increase since 1986. Student Loan Assistance: Employer-sponsored student loan payments are now permanently extended. Trump Accounts: A new tax-advantaged savings account for children under 18, with employer contribution options. ACA Reporting Relief: Employers no longer need to automatically distribute individual statements if proper notice is posted. Beyond the OBBBA, employers are navigating mental health parity uncertainty, expanding state paid leave laws, healthcare transparency requirements, and growing PBM scrutiny. The compliance landscape demands flexibility and proactive planning.   Employees Want More — And They’re Choosing Employers Who Deliver Today’s workforce, dominated by Gen Z and Millennials, has fundamentally different expectations around benefits. Wellness is no longer a perk — it’s a strategic differentiator.   Fertility Benefits 2 in 3 employers plan to invest in family health benefits within the next three years — a 44% increase since 2024. With infertility affecting 1 in 6 people globally, and new federal guidance expanding how employers can offer stand-alone fertility benefits, this is an area of rapid growth.   Mental Fitness The conversation has shifted from mental health crisis response to mental fitness — proactively building resilience. More employers are offering coaching, dedicated mental fitness days, and expanded EAPs.   Women’s Health Only 40% of organizations currently offer fertility services, 49% provide prenatal support, and just 21% offer menopause-specific support — despite growing demand from Gen X, Millennial, and Gen Z workers alike.   Financial Resilience 75% of Americans fell short of their financial resolutions in 2025. Employers offering student loan repayment, emergency savings programs, and financial education workshops are seeing stronger engagement and retention.   AI Is Reshaping Benefits Administration 40% of HR leaders already use AI for benefits administration, and the pace of adoption is accelerating. AI is enabling: Personalized benefits recommendations based on employee health data and preferences Predictive analytics that forecast attrition, skill gaps, and hiring needs Automation of payroll processing, enrollment, and compliance reporting 24/7 employee self-service through AI-powered virtual assistants   But employers must approach AI implementation thoughtfully — with transparent data policies, investment in employee training, and realistic expectations. 60% of firms report minimal measurable gains despite significant investment, underscoring the importance of strategy over adoption for its own sake.   Get the Full 2026 Employee Benefits Trends Report This article covers only the highlights. The full report goes deeper on every topic — with specific employer action items, data, compliance checklists, and strategic frameworks to guide your 2026 planning. Download the 2026 Employee Benefits Trends Report to get:   Detailed cost management strategies with real-world data OBBBA compliance action items by benefit type State-by-state leave law guidance Fertility and wellness benefit benchmarks AI implementation considerations for HR teams   Questions about how these trends affect your organization? Contact a Cottingham & Butler advisor today.

Written by: Cottingham & Butler Food & Agribusiness Group For many mid‑market food, ag, and processing companies, the traditional insurance market has become increasingly unpredictable - particularly on the casualty side. Rising rates, tightening underwriting, and inconsistent carrier appetite have pushed more organizations to look for long‑term stability. That’s why captives have rapidly grown as a strategic alternative.  Is My Business a Captive Fit?  While captives can fit many industries, the companies that benefit most share a few characteristics:  1. Strong Safety Culture & Operational Discipline   Organizations with established safety practices, management consistency, and year‑over‑year loss control improvement tend to outperform industry averages. That performance is what allows captive members to pay premiums based on their own results , not the volatility of the broader market.  2. Mid‑Sized to Large Premium Spends   Companies with meaningful GL, Auto, WC, and APD spend - typically $300K+ of combined casualty premium - have enough scale to capture real value from loss‑sensitive structures.  3. Desire for Transparency & Control   Captive members gain control over claims management and have great visibility of performance benchmarking, and capital flow. For companies that desire more say in claims management and adjustment, captive models offer superior insight and control that is not possible with guaranteed‑cost programs.  4. Long‑Term Thinking   Captives reward consistency. Members who plan 3–5 years ahead often see the greatest financial upside.    What Are the Benefits of Joining a Captive?  1. More Stable, Predictable Pricing   Traditional carriers keep raising rates, especially auto coverage - even for companies with clean loss of histories and no claims. In the standard market, good operators are unfairly penalized and end up subsidizing poorer performers, driving costs higher regardless of individual results. Meanwhile, captive members have broken this cycle, consistently outperforming and achieving better outcomes than those stuck in the standard market. Captive performance across the board outperforms the standard market significantly. The example below shows captive performance of one of C&B’s groups over the past 5 years. On average, the captive is outperforming the standard market on an annual basis by 5.2% on WC, 12.68% on GL, 9.35% on AL & 4.52% on APD.    2. Return of Underwriting Profit & Investment Income   Unlike guaranteed‑cost programs - where the carrier keeps every dollar not spent on losses - captives allow members to recapture excess premium , earn dividends , and build equity over time.   3. Peer Benchmarking & Best‑in‑Class Community   Captive membership connects similar best-in-class operators to one another, allowing companies to benchmark their safety, claims, and operational performance against industry peers - not generic national averages.    4. Excellent Safety and Ability to Improve Loss Experience    The right captives are proven to help control losses because the insured owns the risk. That ownership drives stronger safety accountability and more disciplined claims management, with earlier intervention, better control over medical and legal outcomes, and a focus on preventing repeat losses - ultimately lowering both frequency and severity over time.    Why Now Is the Right Time to Explore Captives  1. The Casualty Market Isn’t Normalizing Anytime Soon   Auto liability and excess/umbrella remain some of the most distressed lines in commercial insurance, driven by nuclear verdicts, social inflation, and persistently elevated carrier loss ratios. The result is continued rate pressure, tighter terms, and reduced capacity - with little relief in sight. While much of the market is absorbing these increases, captive participants have avoided the worst of the volatility, benefiting from pricing stability and outcomes tied to their own performance rather than broad market dislocation.      Captive Case Study: Member's Rate Change Since Joining Captive in 2021 Work Comp: -41.85% General Liability: -44.38% Auto Liability: -41.55% Auto Physical Damage: +7.27%   2. Better Predictability in an Unpredictable Market   Captives also bring predictability to an increasingly unpredictable environment. For companies fatigued by annual market swings, captives offer control over pricing, transparency into where dollars are actually spent, and the ability to benefit directly from strong safety and claims performance. As traditional carriers continue to narrow underwriting appetites, high‑performing organizations are increasingly grouped with weaker risks and priced accordingly. Captives break that pattern - you are judged by your results, not the market’s problems.  3. Increased Carrier Restrictions Create More Opportunity   As traditional carriers tighten underwriting appetites, high‑performing companies are unfairly grouped with weaker risks. Captives break that pattern. For disciplined food and ag organizations with strong operations and a real safety culture, a captive isn’t just another insurance option—it’s a strategic advantage. The traditional market was never designed to reward top performers.  A captive change that dynamic by turning risk into a long‑term financial engine that rewards control, accountability, and consistency.    Final Thoughts   A captive gives you something the traditional market will never offer:   Control over your cost of risk instead of absorbing whatever increase shows up at renewal  Transparency into how your dollars are used, instead of dealing with pricing that feels arbitrary  The ability to capture underwriting profit , not donate it  A long-term financial engine that rewards strong safety performance instead of penalizing you with market-wide averages  Stability when the commercial market is anything but stable  If your organization is performing at a high level and you are committed to continuous improvement, it’s time to flip the script on the traditional insurance model. A captive puts you in control and can become a long-term profit center for your business.

FMCSA is developing a new platform called MOTUS (Modernization of Tracking, Understanding, and Safety). Many fleets have already heard the name circulating in industry conversations and are wondering what it actually is and whether they need to take action. This brief provides a straightforward explanation of MOTUS and what it means for carriers right now. What MOTUS Is MOTUS is FMCSA’s long‑term effort to modernize and consolidate several legacy systems into a single, unified platform. It is designed to eventually streamline: Registration and licensing data Safety measurement and monitoring Compliance reviews and audits Reporting and documentation workflows The goal is to create a more efficient, accurate, and user‑friendly environment for both regulators and carriers. Why Fleets Are Hearing About It Industry groups, technology vendors, and compliance professionals have begun discussing MOTUS because FMCSA has signaled that it will replace multiple existing systems over time. As a result, fleets are naturally asking: What is MOTUS? When will it affect us? Do we need to prepare? This brief answers those questions clearly. What Fleets Need to Do Right Now Ensure your FMCSA Portal account is active. Verify your Portal account user list. Update company information by submitting an online Biennial Update to ensure your information is up to date. Once you have completed these steps, no further action is required at this time. FMCSA will continue to provide additional updates and instructions as the system launch date approaches.   That said, staying aware of MOTUS is beneficial because it will eventually influence how fleets interact with FMCSA systems. What MOTUS Will Mean in the Future While no immediate action is required, fleets can expect long‑term benefits once MOTUS is fully implemented: Simplified compliance workflows  through a single platform More accurate and accessible data  across safety and registration systems Improved integration  with telematics, ELDs, and fleet management tools Greater transparency  into safety trends and FMCSA oversight These improvements are intended to reduce administrative burden and support stronger safety performance. Bottom Line MOTUS is a major modernization effort by FMCSA, and fleets are right to be curious. The system is still evolving, and FMCSA will provide guidance well before any required changes occur.   Stay tuned for more updates as FMCSA continues to release information and timelines.

In our recent webinar, hosted by SMSC Safety Consultant Nate Gump, this session explored the often-overlooked workplace injury risks drivers face and their significant impact on workers' compensation claims. While motor vehicle crashes often get the most attention, most driver injuries occurred during non-driving tasks such as entering and exiting vehicles, loading and unloading freight, working in yards and docks, and managing environmental exposures. Attendees discovered practical, data-driven strategies to reduce injuries, improve compliance, and control workers' compensation costs. Key Takeaways Most driver-related workers’ compensation claims stem from non-crash injuries, particularly overexertion, slips, trips, and falls, occurring during routine tasks. OSHA regulations apply to drivers, including those regulated by DOT/FMCSA. Employers must address walking-working surfaces, ergonomics, environmental exposures, and recordkeeping obligations. Common OSHA citations in transportation environments often result from deficiencies surrounding housekeeping, access/egress safety, and ergonomic risk management. Implementing layered engineering and administrative controls, supported by driver training and leadership engagement, can significantly reduce injury frequency and claim severity. Leveraging OSHA logs, workers’ compensation data, and trend analysis enables organizations to proactively target risk exposures, improve compliance, and control long-term insurance costs.  Click here to view the presentation.

In this Benefits Now video, Heather Acerra breaks down important Illinois benefits compliance updates for 2026 in a clear, concise and practical way. HR leaders will gain insight into evolving leave laws, pharmacy benefit regulations, mental health parity requirements, and ACA reporting - with a focus on what matters most and what to review now. Heather Acerra Employee Benefits Sales Executive (309) 335-5586 HAcerra@cottinghambutler.com

On February 3, 2026, the Consolidated Appropriations Act of 2026  (CAA 2026) was signed into law. This expansive federal spending package includes significant reforms impacting Pharmacy Benefit Managers (PBMs). While the full effects of the CAA 2026 won’t be felt until 2029, this new mandate has already shifted pharmacy benefits away from the opaque ‘black box’ model toward one focused on better transparency. The CAA 2026 is part of a wider federal push to increase PBM transparency and lower drug costs. This includes the Department of Labor (DOL) proposed fee disclosure rules, recent FTC enforcement actions regarding insulin pricing, and the recent debut of TrumpRx. Background PBMs are third parties that manage many health plans’ prescription drug benefits.  Health plans often rely on PBMs to process prescription drug claims, design pharmacy networks and negotiate rebates from drug manufacturers. In recent years, the PBM industry has faced growing scrutiny amid questions about lack of pricing transparency and PBM practices, such as retaining a share of manufacturer rebates.  In response, state PBM laws have surged nationwide in the absence of federal regulations.  Applicability of such state laws for ERISA employers has always been questioned.  Now, both Congress and the Executive Branch have provided the launching point of federal regulatory change for the pharmaceutical delivery industry. Key PBM Changes Under the CAA 2026 Include: 100% Rebate Pass-Through : For plan years beginning after August 3, 2028, 100% of rebates, fees and discounts must be remitted to group health plans. Medicare Part D ‘Delinking’ : Beginning in 2028, Medicare Part D will require PBMs to charge a flat service fee instead of taking a portion of the drug’s price. Enhanced Audit Rights : The law strengthens plan sponsor leverage to audit PBM data annually, which will be a critical tool for verifying contractual compliance. Mandatory Transparency Reporting : Detailed reports on prescription drug spending data and formulary rationale. Heightened Fiduciary Oversight : The law clarifies the disclosure obligations for PBMs as service providers, heightening the employer’s fiduciary obligation to assess the reasonableness of all compensation. Why This Matters for Employers The CAA 2026 does not require employers to become pharmacy benefits experts. It does reinforce the expectation that employers work with their brokers and pharmacy partners to ensure transparency and alignment with evolving standards. Employers should expect that: PBM compensation is understood and defensible: Employers should be able to explain how their PBM is paid and what fees are retained. This clear, practical understanding is foundational to fiduciary oversight. Pharmacy spend is being actively managed, not just renewed :   Employers should be able to demonstrate that pharmacy spend is regularly reviewed and that action is taken to manage any waste and inefficiency, with brokers and pharmacy partners supporting this ongoing oversight. Contracts are aligned with market direction : Upcoming renewals are an opportunity to ensure contracts reflect the upcoming phased in expectations around rebate pass-through, fee transparency, and audit rights.  The shift toward fee transparency can be illustrated with a simple example:   Current : A manufacturer paid a $2,000 rebate. The employer would receive $1,700 as the “rebate” while the PBM would retain $300 as a “formulary or administrative fee.” Future : The manufacturer pays a $2,000 rebate. The PBM must pass the full rebate to the plan and will charge bona fide service fees. What Employers Should Do Now While some provisions phase in later, the next one or two PBM renewal cycles are where employers can proactively align their program with future requirements. Employers should work with their broker to ensure a few core areas are in place: Understand how their PBM is compensated : Employers should work with their broker to confirm, at a high level, how their PBM earns revenue, including what compensation flows back to the plan and what is retained for services. The goal is clarity and defensibility, not complexity. Ensure PBM contracts are aligned with CAA transparency standards : As contracts renew, employers should expect their broker to help ensure PBM agreements are aligned with future transparency standards and regulatory requirements. Demonstrate ongoing pharmacy oversight : Employers should be able to point to regular reviews and informed decisions around pharmacy spend, with guidance from their broker and pharmacy partners. Reassess options as new transparency data becomes available : Enhanced reporting helps employers and brokers validate the competitiveness of the current PBM model and explore alternatives when appropriate. How Broker-led Pharmacy Consulting Supports These Expectations PBM contract and financial diagnostics :   Supporting transparency by validating rebate pass-through, service fees, and contractual compliance. PBM RFP and renewal strategy : Helping employers transition from opaque pricing structures to fee-based models that align with emerging regulatory standards. Clinical and cost management programs : Guiding strategies such as specialty management and biosimilar adoption to balance clinical outcomes with cost efficiency. Executive-ready reporting: Providing clear, defensible documentation that supports prudent fiduciary management. A Broader Shift: The Launch of TrumpRx What it is : A prescription price comparison and discount platform for the public that provides consumers with a pathway to view and access lower cash prices at retail pharmacies. What it is not : An employer health plan, a PBM replacement, or a structural reform of employer pharmacy benefits. How it impacts employers : Increases price visibility at the retail level, which may lead to situations where the consumer cash price is lower than the insured rate. This reinforces the broader movement toward transparency without altering employee plan structure. While the mechanics are familiar to employers and brokers who have experience with other prescription discount cards or coupon programs, the key distinction is that TrumpRx discounts are manufacturer-sponsored and tied to specific participation requirements. Looking Ahead While the CAA is now federal law, the specific rules will continue to take shape over the next 18 months. Federal agencies are tasked with defining standards for ‘bona fide service fees’ and formatting for transparency reports. With continuously evolving standards, proactive contract review is an essential part of the enhanced fiduciary oversight.

Nuclear verdicts continue to rise with escalating financial stakes for businesses. In our recent webinar, our claims management experts broke down what's driving massive jury awards and shared proven protective strategies. Through real-world case studies and field-tested approaches, attendees walked away with practical tools and actionable steps to reduce risk exposure and strengthen their defense against nuclear verdict outcomes. Key Takeaways: Are You Prepared?  Establish proactive training programs, comprehensive policies, strategic hiring practices, and a strong safety culture before incidents occur. Are the Right Claim Strategies Implemented? Implement rapid response claim strategies including first call settlements, accident reconstruction, evidence preservation, and thorough investigation techniques. Are Your Drivers Prepared? Ensure drivers are trained on proper accident scene procedures, evidence documentation, law enforcement communication, and immediate reporting protocols. Click here to view the presentation. Additional Resources: Post Accident Preservation Checklist Vehicle Accident Kit Client & Driver Claim Reporting Training Video : The Accident Zone

Discover how Cottingham & Butler helped this family of street and road construction companies achieve a consolidated program with centralized practices to take advantage of the anticipated long-term ROI. Key Wins The Situation One of the largest street and road contractors in the Midwest has historically been operating its entities with full autonomy and completely independently as it pertains to insurance and risk management processes and decisions. There was an apparent opportunity for economies of scale and carrier/program buying power they were not taking advantage of. Why They Needed Change Six commonly owned operating entities were buying six separate insurance programs with 16+ insurance companies and being represented by multiple brokerage firms. Each entity was operating with full autonomy and completely independently of each other. The organization was operating without unified risk management standards, resulting in fragmented philosophies and inconsistent decision-making across business units. Significant inconsistency and opportunity in program structure, coverage forms, limits purchased, retentions, property valuations and more. Safety operations, claims handling, and insurance/contract mechanisms were frequently misaligned, creating both vulnerabilities and strategic opportunities. Anticipated non-renewals on two of the operating entities The Cottingham & Butler Approach Strategic Program & Coverage Optimization Successfully consolidated main Property & Casualty Insurance Programs with 1 insurance company to take advantage of economies of scale and buying power Secured a consolidated large deductible for casualty lines for increased upside savings potential. Secured a $50M+ increase in property coverage limits. Future anticipated long-term cost savings of $2M+ Integrated Safety & Claims Services Contributed to the integration of standardized procedures, programs, and processes. Implemented customized safety trainings and consulting service plan. Implemented centralized claim intake, management, and root cause investigation practices. Negotiated special claims handling procedures with the carrier partner for prioritized claims handling and better outcomes. Implemented ongoing claims advocacy and consulting service plan. Contractual Risk Transfer Identified and corrected numerous vulnerabilities for transferring 3rd party risk. Contributed to bolstering and integrating standardized contractual risk practices and agreements including subcontractor, hired hauler, flagger and temporary staffing agreements. Implemented ongoing contractual risk transfer Ready to maximize your coverage? Contact us today to begin your journey!

The Benefits Brief: Micro-Strategy Sessions  are monthly, 15-minute virtual sessions designed for CFOs, Human Resource, and Benefit Leaders who want fast, actionable insights on employee benefits strategy and healthcare cost management. Each episode delivered expert guidance, emerging trends, and practical takeaways - packed into a concise format that respected your time and sharpened your strategy. Check this series out below! The Hidden Cost Lever - Rethinking Health Plan Eligibility: 8/6/25 Click here to view the presentation. Beyond the Plan: Exploring Alternatives That Benefit Members and the Bottom Line - 9/2/25 Click here to view the presentation. Health Plan Mastery: Regain Control, Reduce Costs - 10/7/25 Click here to view the presntation. Beyond the Script: Managing the True Drivers of Pharmacy Costs - 11/4/25 Click here to view the presentation. The Care Traffic Controller: Directing Patients to High-Value, Low-Cost Healthcare - 12/2/25 Click here to view the presentation. Captives and the Cost of Certainty - 1/26/2026 Click here to view the presentation. BJ McAndrew BMcAndrew@cottinghambutler.com 608.228.6055

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.