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What began as unsustainable funding with loss ratios exceeding 100% transformed into three consecutive years of flat premiums through strategic risk transfer. This transformation delivered $540,000 in total savings while maintaining coverage for employees and their families. The Situation A state-funded school district with approximately 200 full-time employees, faced mounting financial pressure from escalating healthcare costs. As a state-funded entity, the district lacked the ability to raise revenue independently, making cost containment critical for operational sustainability. Like many public school districts with limited funding flexibility, they needed innovative solutions to manage healthcare costs while maintaining competitive benefits essential for attracting and retaining quality educators and staff. Why They Needed Change Fragile Funding Model:  As state-funded School District they lacked the ability to raise revenue independently, creating budget constraints. Compounding Financial Pressure:  Year-over-year loss ratios exceeded 100%, straining the district's budget and threatening the long-term affordability of employee healthcare coverage. "Magnet Plan" Concerns:  The plan offered disproportionately rich coverage, making it highly attractive to families and resulting in an elevated dependent ratio (~3.5 vs. benchmark 2.0), driving unsustainable utilization. Limited Revenue Options:  Unlike private employers, the district cannot simply raise prices or fees to offset healthcare cost increases, requiring strategic cost management solutions. Competitive Necessity:  Maintaining attractive benefits packages is essential for recruiting and retaining quality educators in a competitive job market. Key Wins Loss Ratio Transformation -  Reduced loss ratios from over 100% to 70%, creating sustainable financial foundation for the healthcare plan $495,000 Premium Stabilization  - Maintained flat premiums for 3 consecutive years, avoiding significant cost increases that would have strained district budget $540,000 Total Savings-  Cumulative savings through Year 3, with $155,000 in net savings achieved in Year 1 alone Family Advantage Health Plan Success  - Strong early FAHP adoption doubled after Year 1, demonstrating employee acceptance and program effectiveness Risk Transfer Strategy  - Successfully leveraged risk transfer mechanisms to stabilize financial exposure while maintaining coverage Future Innovation Pipeline -  Positioned for next phase improvements with proposed MyAdvocate360 implementation What is Family Advantage Health Plan (FAHP)? The Family Advantage Health Plan is an innovative program that provides 100% healthcare coverage to eligible employees' families. Employees with access to a spouse's health plan can transition to dual coverage, receiving full reimbursement for out-of-pocket expenses through an HRA plus monthly premium assistance. This creates a win-win scenario where high-utilization employees gain coverage while employers save an average of $10,000 per family of four that transitions. The program requires no changes to existing plans or relationships, allowing employers to improve their risk profile and reduce costs while maintaining valuable employee benefits. The Cottingham & Butler Approach Expert Risk Analysis Our experienced consultants conducted comprehensive 3 C's analysis to understand the district's unique challenges and identify optimal risk transfer opportunities aligned with their state-funded constraints. Analyzed loss ratio trends and cost drivers Evaluated dependent ratio impacts on plan sustainability Assessed funding model limitations and budget constraints Identified risk transfer opportunities and solutions Strategic Risk Transfer Implementation Understanding the district's funding limitations, we implemented Family Advantage Health Plan as a strategic risk transfer mechanism, providing employee protection while stabilizing district costs. Designed FAHP program with $50/month per person benefit Focused on out-of-pocket cost coverage to maximize employee value Structured program to transfer risk away from primary plan Created sustainable cost model aligned with district budget realities Ongoing Optimization and Innovation Our commitment extends beyond implementation to continuous improvement, monitoring results and identifying next-phase enhancements to maintain competitive advantage. Monitored adoption rates and employee satisfaction Tracked financial performance and cost savings Identified opportunities for further optimization Developed roadmap for future innovations like MyAdvocate360 Cottingham & Butler Employee Benefits See more client success stories at cottinghamButler.com/clientsuccess

Our recent webinar, "Safety Reimagined: Setting Goals That Actually Drive Change," challenged traditional compliance-focused metrics and offered practical strategies for developing safety goals that empower your workforce, build organizational resilience, and create a culture of continuous learning rather than blame. SMSC Safety Consultant Scott Christenson provided valuable takeaways to implement in your own safety programs. If you were unable to attend or want to revisit this session, view the webinar recording now! Key Takeaways: Balance lagging and leading indicators.  Use lagging indicators to validate system performance and leading indicators to guide proactive improvement efforts Make goals learning-oriented and context-aware.  Shift from zero-harm targets to goals focused on understanding how work is actually done and improving systems based on that reality. Involve frontline workers in the process. Engage the people doing the work in creating goals to ensure they're practical, relevant, and aligned with actual working conditions. Keep goals SMART and HOP-aligned. Structure goals to be specific, measurable, achievable, relevant, and time-bound, while maintaining the adaptability needed to respond to real-world complexity. Review and adjust regularly.  Goals and indicators should be revisited frequently to ensure they remain relevant and responsive to changing conditions. Click here to view the presentation.

Written by Brooke Boddicker, Benefits Communications Manager Open enrollment season doesn't have to be overwhelming for you or your employees. The key to success lies in how you communicate. Here are five best practices to help your benefits information break through the noise and drive meaningful engagement.   1. Use Multiple Channels Your workforce is diverse, and your communication strategy should be too. While some prefer digital channels, others might prefer tangible print materials. The right mix depends on your specific employee population, so choose channels that genuinely reach and engage your people. 2. Communicate in Phases Effective benefits communication follows a three-phase approach: announce early, prompt action during enrollment, and send reminders as deadlines approach. Repetition isn't redundant – it's strategic. Employees need time to digest information, discuss options with family, and make informed decisions. Early, repeated messaging significantly increases engagement and comprehension. 3. Keep the Language Simple Employees don't need to become benefits experts to get the coverage they need. Strip away the jargon and use bite-sized formats, real-world scenarios, and everyday language that connects benefits to their actual purpose in employees' lives. 4. Personalize Generic benefits materials get generic results. When communications reflect your company's brand and culture, they build credibility and trust.  5. Include Clear Calls to Action Don't leave employees wondering what to do next. Every communication should point them toward their next step, whether that's reviewing benefit summaries, enrolling in coverage, or contacting HR. Clear calls to action empower employees to take control of their benefits choices while preventing information overload in announcement materials.   Poor communication costs organizations an estimated $1.2 trillion annually in lost productivity (2022 Grammarly and the Harris Poll). But effective benefits communication does more than save money. It shows employees they're valued, improves satisfaction, and builds trust. When you make benefits information clear, accessible, and relevant, you're not just checking a compliance box. You're helping your people make decisions that protect their health, finances, families, and more. Need help developing a benefits communication strategy that breaks through? Contact our team to learn how we can support you and your company. https://www.cottinghambutler.com/hrefficiency

Written by Emily Glanz, VP Sales - Risk Management for the September/October 2025 issue of CFMA Building Profits. The construction risk landscape in 2025 and heading into 2026 is anything but static. Between billion-dollar storms, evolving underwriting appetites, and the rise of AI-powered everything, it’s proving to be a wild ride. This article translates insurance “legalese” into practical language to help leaders in construction navigate what’s happening and prepare for what’s next. Whether you’re a contractor trying to make sense of your builder’s risk renewal, a broker looking to see how others are viewing the market, or an underwriter wondering if you’re the only one still using a fax machine (you’re not), this article is for you. PROPERTY INSURANCE Commercial Property In 2025, the U.S. commercial property and builder’s risk insurance market is balancing volatility from climate-driven events with emerging construction innovation. Those forces have infused carrier optimism and a renewed willingness to deploy capacity and capital. Early in 2024, the property market began to show clearer signs of a shift, marked by rate relief and increased carrier appetite. However, weather-related events have not slowed, nor have they become less costly. According to Gallagher Re and reported by the Insurance Information Institute, global catastrophe losses at the end of 2024 totaled at least $402 billion, with 37.6% of those losses insured. 1  In the first half of 2025 alone, the U.S. reported over $100 billion in insured losses, with $19 billion driven primarily by convective storms and the Southern California wildfire. 2 Despite these challenges, the property market continues to show signs of rate relief and stabilization. Capacity is expanding, leading to increased competition and resulting in decreased rates, lower deductibles, and broader coverage, particularly for well-managed risks. Even historically difficult to insure properties in coastal regions have seen rate softening in 2025. For more, see Exhibit 1. Insurers are increasingly managing their exposure through quota share structures. This approach provides a buffer for both insureds and reinsurers. However, properties with prior losses or significant catastrophic exposure continue to face elevated rates and tighter underwriting terms. While the broader commercial property insurance market is showing signs of softening, contractors may not experience the same level of benefit. For the most part, due to lower total insured values, contractors have been relatively insulated from the harshest impacts of the hard market cycle. Property insurance often represents a smaller portion of their total cost of risk, which has helped shield them from steep premium increases. However, this also presents a catch-22: with lower premiums and modest property schedules, contractors have less leverage to negotiate significant rate reductions, even in a softening market. Additionally, many admitted carriers are still retroactively adjusting property valuations to account for inflationary pressures, which can offset potential savings. As a result, contractors should temper expectations for substantial premium decreases, especially when their property spend is minimal relative to their overall risk profile. Builder’s Risk Specific to the builder’s risk property market, Amwins 3  notes that projects classified as “difficult to place” fall into three primary categories: large wood frame construction, catastrophe-exposed construction, and catastrophe-exposed wood frame construction. Encouragingly, broader property market trends are beginning to influence these more complex placements, though underwriting scrutiny remains high. Carriers are prioritizing high-quality submissions that include complete and consistent data, clear jobsite planning and design, and strong security protocols throughout the construction process. In short, complete, consistent, and timely data up front enables efficient underwriting and drives more favorable results. Specific to risk engineering and underwriting, technology is playing an increasingly important role in risk assessment. Insureds that implement water flow detection systems, AI-powered security, and damage mitigation tools are viewed more favorably by underwriters. Water losses have continued to be a major driver in four-wall construction, so proactive measures and technology advancements can certainly yield a favorable underwriting result. 4 Meanwhile, project starts have slowed, particularly in the multifamily sector, as developers respond to tighter margins and macroeconomic headwinds. Building material sustainability is also gaining momentum as a strategic priority. Insurers are developing specialized products that support green building initiatives, including climate-resilient infrastructures and environmental-, social-, and governance-aligned construction practices. Using these methods can reduce absolute property losses in catastrophic events. From an insurance perspective, innovative solutions such as parametric insurance and alternative risk transfer mechanisms are gaining traction, offering faster recovery options and potentially providing new sources of capital for high-risk projects. Looking ahead, the market is expected to remain competitive, though caution is warranted. While rate relief may continue for favorable risks, the frequency and severity of natural catastrophes will continue to influence underwriting decisions. The long-term trajectory of rate relief amid uncontrollable catastrophic losses remains uncertain. Still, many in the industry recognize that current market conditions, while still volatile, present a window of opportunity. COMMERCIAL CASUALTY Auto The commercial auto liability insurance market in 2025 remains one of the most chronically challenging lines within property and casualty. According to the Council of Insurance Agents & Brokers (CIAB), auto liability posted an average rate increase of 10.4% in Q1 2025, the highest among all major property and casualty lines. 5  This marks 55 consecutive quarters of rate hikes, 6  which emphasizes how imbalanced the market is. Despite sustained double-digit rate increases, carriers continue to struggle with losses that consistently outpace premium growth. This leaves little room for relief, especially for insureds with large fleets, poor loss histories, or exposures tied to “gray fleet” operations. “Gray fleet” refers to vehicles not owned by a company but used for business purposes, typically employee-owned vehicles driven for work-related tasks. While these vehicles may not appear on a company’s balance sheet, they represent a significant liability exposure. As gray fleet usage grows, insurers are placing greater emphasis on how organizations manage this risk, including: Collecting insurance declarations from employee-owned vehicles Running motor vehicle records Implementing driver qualification standards Enforcing minimum age requirements (often excluding drivers under 25) Requiring 1-3 years of clean driving history One of the most alarming trends in commercial auto is the escalation of jury awards. The median commercial auto liability verdict has surged to $23.8 million, according to Captives Insure. 7 Nuclear and thermonuclear verdicts are also damaging to umbrella and excess liability layers, which are often triggered by catastrophic auto claims. Several interrelated factors continue to fuel the challenges in this line: Litigation and social inflation:  The rise of third-party litigation funding — an industry expected to be worth $30 billion by 2028 8  — has extended the duration and cost of legal battles. Plaintiff attorneys increasingly use psychological tactics, such as the reptilian theory, to ultimately cloud a juror’s judgement with emotional distress by casting the defendant as a threat to society. Distracted driving : Drivers aged 26-36 account for nearly half of all distracted driving incidents. 9  According to the National Highway Traffic Safety Administration, taking your eyes off the road for just five seconds at 55 mph is equivalent to driving the length of a football field blindfolded. 10  These behaviors are linked to 108% higher loss costs. 11 Driver shortages:  The ongoing shortage of qualified commercial drivers has led to increased reliance on less experienced operators, contributing to higher accident frequency and severity. Vehicle complexity and repair costs:  Modern vehicles equipped with advanced driver-assistance systems are significantly more expensive to repair. Supply chain disruptions and labor shortages have only exacerbated these costs. In response to these pressures, insurers are tightening underwriting standards, raising attachment points on liability towers, and adopting more conservative reserving practices. Insurers are increasingly turning to telematics, AI-driven underwriting, and predictive analytics to better assess and price risk. Many are explicitly excluding named drivers, requiring stricter driver qualification criteria and years of experience, and requiring insureds to frequently review their fleet safety protocols. “Best in Class contractors are taking a proactive stance on auto liability,” says TJ Greenwood of Safety Management Services Company, who works closely with members of the CSIL construction captive. “We’re seeing three key strategies make a real difference: First, leveraging technology (cameras, GPS, speed tracking, and telematics) to create accountability and unlock documentation that may be critical when incidents occur. Second, implementing a strong driver qualification program that mirrors the rigor of CDL standards but applies to every company driver. And third, reassessing personal use of company vehicles. What was once considered a company “perk” necessitates higher scrutiny, especially when employees are performing personal tasks in a vehicle bearing the company logo.” “The benefit of working within a loss-sensitive program, like a captive, is that members can go even further by partnering with their insurance carriers to unlock next level claim strategies. First call settlement programs can resolve qualifying claims within hours, often before attorney involvement. This may allow for a dramatic reduction in indemnity and expense. Additionally, commercial auto-focused predictive analytics identify high-severity claims early and provide rapid resolution protocol that should reduce settlements on flagged claims.” While other lines of insurance are beginning to show signs of softening, commercial auto remains firmly in a hard market cycle. The outlook for 2025 suggests continued rate pressure, particularly for accounts with large fleets, poor loss experience, or operations in high-risk jurisdictions. General Liability While the general liability (GL) insurance market remains relatively stable compared to auto liability, contractors face a more nuanced reality. According to CIAB, GL premiums rose by an average of 4.2% in Q1 2025, 12  reflecting moderate firming driven largely by social inflation and increased loss severity across industries. For most insureds, this translates to manageable increases, unless they operate in high-risk sectors or have adverse loss histories. For contractors, however, the story is more layered. The construction industry is experiencing a surge in dispute frequency, complexity, and value, which directly impacts how underwriters assess GL exposure. According to the 2024 Construction Disputes Report from Arcadis, the average value of construction disputes in North America rose to $43 million in 2023 (Exhibit 2). The average time to resolve disputes also increased to 14.4 months, underscoring the growing complexity of claims. 13 The most common causes of disputes — errors or omissions in contract documents and failure to understand or comply with contractual obligations — are directly tied to GL exposures. These issues often lead to bodily injury or property damage claims, especially when project delays, scope changes, or quality issues arise. This is affecting insurance programs because contractors are increasingly being scrutinized not just for their safety records, but for how they manage contractual risk, documentation, and dispute resolution. Consequently, underwriters are paying closer attention to: Contract language and risk transfer mechanisms Claims history involving subcontractor disputes or third-party injuries Use of digital tools for documentation and project controls The Arcadis report emphasizes that contract and specification reviews and risk management are the top two techniques for avoiding disputes. 14  These practices are also critical in demonstrating to insurers that a contractor is a lower risk GL exposure. As an outlook for contractors, it is reasonable to expect that while GL may not be experiencing the same volatility as auto or umbrella, contractors should not assume stability means limited information will suffice. The intersection of legal risk, project complexity, and dispute trends means that GL programs must be proactively managed. Umbrella & Excess Liability In 2025, the umbrella and excess liability market continues to feel the compounding effects of rising severity in underlying lines, particularly auto liability. According to CIAB, umbrella premiums rose by an average of 9.5% in Q1 2025, 15  reflecting ongoing pressure from catastrophic verdicts and limited carrier appetite for high-limit placements (Exhibit 3). For contractors, this is especially problematic. Large fleets, subcontractor-heavy operations, and complex project scopes increase the likelihood of high-severity claims that pierce primary layers. As a result, underwriters are not only raising rates but also reducing available capacity, particularly for accounts with transportation exposure or adverse loss histories. As a result, contractors must now approach umbrella placements with the same submission standard that is applied to primary lines. Insurers are scrutinizing driver qualification standards, gray fleet controls, and contractual indemnity language to assess how well risk is managed across the organization. Additionally, the rise in construction defect disputes adds another layer of concern, as bodily injury or property damage claims stemming from project delays or jobsite incidents can quickly escalate into excess limits. For contractors, the key to navigating this environment lies in proactive risk management, tight documentation, and early engagement with brokers and carriers to structure programs that reflect both the true exposures of their operations with the market’s evolving expectations. Workers’ Comp Workers’ comp continues to stand out as one of the most resilient and consistently performing lines in the commercial insurance market. In 2025, average rate changes have ranged from modest decreases to low-single-digit increases, with the CIAB Q1 2025 report noting an average rate reduction of -2.6%. 16  This stability offers contractors a degree of predictability and relief amid the volatility seen in auto, umbrella, and GL lines. Strong underwriting results and favorable loss ratios have helped maintain this trend, making workers’ comp a line of opportunity where proactive safety and claims management can still yield tangible financial benefits. However, the construction industry’s unique risk profile can wrinkle this picture. According to the Claims and Litigation Management Alliance, workers’ comp accounts for over 70% of all claims in construction, with nearly $11.4 billion in annual losses tied to serious nonfatal injuries. The top causes of falls, overexertion, and being struck by objects, are compounded by mental health challenges, including stress, fatigue, and substance misuse. These causes not only affect claim frequency and severity but also contribute to longer recovery times and higher total costs of risk. For contractors, the emphasis should be on comprehensive safety programs, early intervention, and strong and engaged claims handling to improve outcomes and control costs in an otherwise favorable pricing environment. 17 ANCILLARY LINES Contractor Professional & Pollution Liability Commonly viewed as an unusual pairing, contractor professional and pollution liability continues to be packaged together by insurers. A key driver is the low frequency of claims experienced on both lines of coverage. Additionally, combining the two coverages and sharing the policy aggregate limit of liability provides notable premium savings to the insured compared with purchasing separate towers of coverage. In 2025-26, many contractors are reevaluating their approach, opting for higher limits and increased self-insured retentions to better prepare for catastrophic exposures. The most prolific type of pollution claim continues to be centered around indoor air, particularly mold. As such, some carriers may assign a claims-made trigger for mold or apply an increased retention to this exposure. Exclusions related to per- and polyfluoroalkyl substances and perfluorooctanoic acid are still relatively rare within the pollution market but are a trend that will be closely monitored in the future. On the professional side, claims associated with construction management continue to be the leading source of professional liability claims. Carriers are still willing to provide the first-party coverages of rectification and protective indemnity at full policy limits, although this trend may change with the growth of high-value rectification claims. Finally, particularly for subcontractors, a notable enhancement is the increase of carriers willing to provide affirmative coverage for faulty work (often termed “faulty workmanship” in policy language). Coverage is either included or added via endorsement, but no two carrier forms are alike. Coverage commonly includes a third-party trigger that will respond to allegations of property damage originating from work performed by the insured. This trend began in 2024 and continues to be under the watchful eye in 2025 and into 2026. Subcontractor Default Insurance In the U.S. market, subcontractor default insurance rates remain stable despite a noticeable uptick in defaults among small- to mid-sized subcontractors. Increased competition, driven by new insurers and capacity deployment, has helped maintain flat pricing while improving coverage terms. Additionally, submissions have increased as GCs continue to enter the market as their revenues increase and awareness of this coverage opportunity grows. Management Directors and officers and employment practices liability continue to face elevated claims frequency and severity; driven by wage and hour litigation, social inflation, and a chronically litigious environment. 18 Chris Bertola, Senior Vice President of RT ProExec, highlights a key driver:  “Private Attorneys General Act  (PAGA) claims in Southern California have seen a significant increase as of late. This rise is primarily attributed to the law enabling employees to file lawsuits on behalf of themselves and others for labor code violations. Employers in Southern California face heightened scrutiny and potential financial liabilities due to these claims.” While the market shows signs of rate stabilization, with a notable drop in increases compared to the peak in 2020, 19  underwriting remains cautious, especially in litigious states like California, New York, and Florida, with emerging difficulty in Illinois and Texas. 20 RT ProExec adds that AI-related risks are reshaping management-liability exposures, prompting carriers to reassess coverage terms and exclusions. 21  Overall, this may impact contractors adopting digital tools and automation. Cyber As cyberattacks grow more frequent and sophisticated, stronger security frameworks have helped keep claims costs manageable. This has led to mostly flat renewals or modest rate reductions for many insureds. Beyond ransomware attacks, according to Coalition, 60% of cyber claims involve social engineering schemes like business email compromise and funds transfer fraud, where attackers intercept payment requests from subcontractors, vendors, or owners. 22  These types of losses often come with sublimits and varying coverage terms. Looking ahead, cyber insurers are expected to tighten underwriting further by requiring continued evidence of ransomware preparedness and staying alert to emerging attack vectors. CONCLUSION If you’ve made it this far, then you deserve credit, or maybe just another cup of coffee. What this year’s market has shown is that volatility isn’t going away, but neither is innovation. From climate-driven property losses to litigation trends and underwriting resets, the landscape is demanding more from all of us: more information, more collaboration, and more intention in how risk is approached. Now is the time to reaffirm the partnerships that help you see around corners, revisit your risk strategy with fresh eyes, and stay curious, because the Best-in- Class risks aren’t just built on strong foundations, they’re built on shared insight, proactive planning, and a willingness to adapt. EMILY GLANZ  is a Vice President who specializes in Construction Risk Management at Cottingham & Butler ( cottinghambutler.com ) in Dubuque, IA, with nearly 15 years of experience in consulting middle-market construction companies. Emily actively participates in industry associations and is a frequent speaker for the International Risk Management Institute (IRMI) as well as regional CFMA conferences, and is appointed to the “Big I” Ask An Expert Panel, where she advises other agents on coverage questions. Emily has also authored risk management blogs and articles for industry publications. She can be reached at  eglanz@cottinghambutler.com . Endnotes 1.  insuranceindustryblog.iii.org/2025-tornadoes-highlight-convective-storm-losses . 2.  insurancejournal.com/news/international/2025/07/16/831840.htm . 3.  amwins.com/resources-and-insights/market-insights/article/state-of-the-market--builder-s-risk-insurance-h1-2025 . 4.  assets.aon.com/-/media/files/aon/reports/2025/2025-global-construction-insurance-and-surety-market-report.pdf . 5.  ciab.com/resources/news-releasemost-lines-of-business-softening-litigation-influencing-others-the-councils-q1-2025-p-c-market-survey-shows . 6.  insurancejournal.com/magazines/mageditorsnote/2025/03/10/814555.htm . 7.  captives.insure/insights/nuclear-and-thermonuclear-verdicts . 8.  insuranceindustryblog.iii.org/reining-in-third-party-litigation-funding-gains-traction-nationwide . 9.  insurancejournal.com/news/national/2025/06/16/827711.htm . 10.  nhtsa.gov/risky-driving/distracted-driving . 11.  insurancejournal.com/news/national/2025/06/16/827711.htm . 12.  ciab.com/resources/news-releasemost-lines-of-business-softening-litigationin-fluencing-others-the-councils-q1-2025-p-c-market-survey-shows . 13.  arcadis.com/en-us/insights/blog/united-states/benjamin-eiss/2024/disputes-in-the-digital-age-findings-of-the-2024-construction-disputes-report . 14. Ibid. 15.  ciab.com/resources/news-releasemost-lines-of-business-softening-litigationin-fluencing-others-the-councils-q1-2025-p-c-market-survey-shows . 16. Ibid. 17.  theclm.org/Magazine/articles/rough-road-ahead-construction-2025-insurance-litigation/3211 . 18.  feeinsurance.com/blog/2024/1/12/2024-commercial-insurance-market-outlook . 19.  ciab.com/resources/news-releasemost-lines-of-business-softening-litigationin-fluencing-others-the-councils-q1-2025-p-c-market-survey-shows . 20.  blog.ryanspecialty.com/april-2025-u.s.-professional-executive-liability-insurance-market-report . 21.  blog.ryanspecialty.com/summer-2025-rt-proexec-insights . 22.  coalitioninc.com/announcements/2025-cyber-claims-report Copyright © 2025 by the Construction Financial Management Association (CEMA). All rights reserved. This article first appeared in CFMA Building Profits (a member-only benefit) and is reprinted with permission.

Written by: Brian Popelmayer, Risk Management Consultant - Hotel Insurance Vertical Leader I just returned from the 2025 Lodging Conference, and three recurring themes dominated my insurance conversations with fellow hoteliers. These aren’t just casual observations; they reflect growing frustration and real financial exposure across the industry. Here's what you need to know: 1. Lack of Creativity in Insurance Programs Hoteliers are tired of cookie-cutter solutions. The consensus? Brokers are recycling the same carriers year after year. Once the deal is closed, innovation fades. In a dynamic risk environment, this stagnation is dangerous. Only 12% of hotel owners say their broker proactively brings new risk solutions to the table annually. That’s a missed opportunity in a market where emerging threats from cyberattacks to social inflation are rewriting the rules. 2. Insurance Rates Continue to Rise Since the pandemic, insurance costs have skyrocketed. On average, U.S. hotel insurance rates have increased by 105% and some segments have seen even sharper spikes. Property insurance is finally stabilizing in 2025, but… Excess Liability rates are climbing fast, with hikes of 8–20% depending on location and risk profile. Resort hotels in high-risk zones pay up to $1,200 per available room annually. 3. Gaps in Coverage and Lawsuit Exposure This is where things get serious. Nuclear verdicts (over $10M) are at a 15-year high. Many hoteliers I spoke with aren’t confident they’re covered for high-risk exposures like: Legionnaires’ Disease – Multi-million-dollar settlements reported. Carbon Monoxide Poisoning – $15M awarded in a Montana case. Human Trafficking & Abuse – Often excluded or underinsured. How Cottingham & Butler Can Help Specialized Hospitality Expertise  — Our hotel insurance team understands the unique risks you face and designs coverage specifically for hotel operations. Proprietary Risk Assessment  — We conduct a comprehensive review that goes beyond standard insurance to uncover gaps that could threaten your business. Strategic Market Access  — We leverage our carrier relationships to bring you competitive premiums and innovative coverage solutions year after year. Proactive Loss Prevention  — We help protect your guests, staff, and bottom line through customized safety programs, on-site training, and compliance support. Dedicated Claims Advocacy  — Our claims team provides 24/7 response and aggressive advocacy to resolve claims quickly and control costs. Brian Popelmayer Hotel Insurance Vertical Leader 847.370.0379 BPopelmayer@cottinghambutler.com

Language and cultural barriers that emerge in a bilingual workforce can contribute to miscommunication and on-the-job accidents and injuries. When you are managing such workers, it is your job to ensure they understand their duties, company policies and safety procedures. Because employees that do not speak English well generally hesitate to ask for help, employers with a bilingual workforce must take steps to bridge cultural gaps and ensure proper communication. First Impressions Orientation should be offered in the worker’s native language, if possible. Bilingual trainers in human resources or senior positions can serve a dual role, acting as translators at orientation, workplace presentations and safety meetings throughout the year. Understanding Information To promote worker safety, you should post signage and communication materials in the language in which your employees are fluent. For Spanish language compliance assistance, OSHA offers a variety of free, health and safety materials at: https://www.osha.gov/complianceassistance/spanish/hispanic-consultation In addition to printed safety materials, provide information about wages, medical insurance and employee policies. It is beneficial to first evaluate employees’ level of education, job duties and common injuries, as well as culture and background, and then adapt your safety programs and communications materials accordingly. Translating Materials Consider professional translation of your materials. If you have Spanish speaking employees, ensure the materials are translated into the most prominent dialect, and ask a native speaker to review the material for accuracy before distributing companywide. The standard translation fee ranges from $10 to $20 per page, but is well worth the expense when weighed against the risk of workplace accidents due to poor communication or understanding. English Classes To develop and retain skilled workers, you may want to consider offering on-site language classes to help your workers build communication skills. Offering learning opportunities at the workplace is convenient for the worker and encourages learning in a team setting. New Safety Environment On the safety front, keep in mind that new immigrants may not understand the importance of following U.S. safety standards. If a machine or tool breaks while an employee is using it, he or she may worry that the job is on the line and try to fix it or make do. Make sure new employees understand that broken machinery in the workplace is taken very seriously to ensure everyone’s safety. Workers should understand that properly reporting problems is a behavior to be rewarded, and will not cost them a job. Keep in Touch Plan to make regular, frequent visits with your bilingual employees, making sure to touch on safety issues in the workplace, and encouraging them to ask about any doubts or issues they may be encountering on the job. To create a welcoming environment for all employees, work to develop a company culture that promotes and supports diversity as a core value of the organization.

Hear directly from Karen Smerchek, Veriha Trucking President and TCA President, on how Safety Excellence has driven her business towards success. As one of our captive members, prioritizing safety transformed their business, reduced incidents, and improved their bottom line. Impact at a glance Ready to Take Control of Your Insurance Program? Cottingham & Butler offers captive solutions designed specifically for quality transportation companies. Our transportation captives provide: Greater control over your insurance program Potential returns of underwriting profit and investment income Stability during insurance market fluctuations Direct access to loss data and improved claims outcomes Industry-specific risk management resources Connect with Experts Learn more about our transportation captive programs and how they can benefit your company.

Written by Katie Hensley, Sales Executive - Risk Management I recently had the opportunity to join Leisa Fox on the Iowa Manufacturing Podcast to discuss the future of insurance for manufacturers. While I'll admit I was a bit nervous beforehand, I'm grateful for the chance to share what we're seeing in the market and how it impacts the clients we serve. The property and casualty insurance landscape is shifting rapidly. Between nuclear verdicts, emerging cyber threats, and dramatic property market changes, manufacturers are navigating more complexity than ever before. But here's what I know from working with our clients: with the right partnership and proactive approach, these challenges become manageable. What We Covered The Property Market: Lessons from the Hard Market We Can't Afford to Forget The property market experienced dramatic hardening over the past few years—capacity shrank, rates spiked, and underwriting scrutiny intensified. Now, we're seeing signs of rapid softening, which is welcome news for our clients. However, this transition presents an important opportunity. The disciplines we developed during the hard market aren't just temporary measures - they're best practices that should remain standard regardless of market conditions: Closing out open carrier recommendations promptly Maintaining accurate property valuations Staying proactive with loss prevention strategies These practices build resilience, not just compliance. Social Inflation and Nuclear Verdicts We discussed the growing impact of social inflation and those headline-grabbing nuclear verdicts that are reshaping liability exposures. General liability markets are showing warning signs similar to what we witnessed in commercial auto insurance. Understanding these trends helps our clients prepare rather than react. Cyber Insurance: Affordable Now, Critical Always Cyber insurance remains reasonably priced, but carriers are monitoring the landscape closely. One breach can fundamentally change a company's risk profile and insurance costs. The key is helping clients stay ahead of vulnerabilities through strong security protocols and regular assessments. Management Liability: Policies Are Only as Strong as Your Practices From Directors & Officers (D&O) to Employment Practices Liability (EPL), insurance policies are only as effective as the operational practices behind them. This means maintaining updated employee handbooks, ensuring clear communication, and enforcing policies consistently. It's not the most exciting conversation, but it's absolutely essential to meaningful risk management. Our Approach: Building Resilience, Not Just Buying Policies What I emphasized throughout the podcast is what makes our approach different at Cottingham & Butler: we don't just sell insurance policies - we partner with clients to build organizational resilience. Understanding what's happening in the broader market and within the specific industries we serve allows us to show up as true strategic partners. The insurance landscape will continue to evolve, but our commitment to proactive, informed risk management remains constant. To listen to the full episode of the Iowa Manufacturing Podca st, click here ! Katie Hensley Sales Executive - Risk Manangment khensley@cottinghambutler.com

The Challenge Mockingbird Transport was built from the ground up. Unified by their business motto "One Team, One Dream", Rey and Cindy Vargas built something remarkable in Donna, Texas. Starting as a truck driver for a big fleet in the valley, he'd grown his own trucking company to 50 trucks and earned respect as one of the most successful operators in the area.   But Mockingbird Transport's insurance strategy hadn't kept pace with their success. As a growing company with an excellent safety record and minimal claims, they were paying standard market rates that didn't reflect his operational excellence. Their insurance program needed to match the company's reputation and financial discipline. Why Cottingham & Butler For a year and a half, Cottingham & Butler attempted to get in touch with Rey but was unable to connect. Finally, our team showed up at his office and left a detailed report about our small fleet captive program. That got his attention - he called back on our drive home asking why we'd been so persistent.   The answer was simple: we saw the potential in what Mockingbird Transport's current program was missing. We scheduled a meeting to discuss captive insurance opportunities, but Rey did his homework first. The night before, he had dinner with a friend, who was an existing Cottingham & Butler captive member, to get the real story on what we'd be proposing. That due diligence convinced him we were worth serious consideration. The Results $150,000+ in annual savings  compared to standard market options Dividend eligibility  providing additional year-end returns based on captive performance Enhanced partnership  with weekly strategic discussions and constant communication Industry networking  through captive events including Nashville Captive Connections and Dubuque Overdrive Workshop Strategic alignment  between insurance program and company growth trajectory What Made the Difference Relentless Persistence : Sometimes the best opportunities require the longest pursuit. A year and a half of consistent outreach proved our commitment. Peer Validation : Rey's dinner with an existing captive client provided third-party credibility that no sales pitch could match. Ongoing Partnership : Weekly conversations and constant communication ensure alignment on both operational and strategic issues. Industry Expertise : Understanding that a growing, safety-focused fleet deserved better than commodity pricing. Event Integration : Facilitating connections through industry events that strengthen relationships and provide continued education. The Takeaway The right insurance partnership is worth waiting for - and worth pursuing relentlessly. Mockingbird Transport saved over $150,000 during their first year with Cottingham & Butler while building a true strategic partnership.   Sometimes the clients who are hardest to reach become your most successful partnerships. Ready to explore how captive insurance could transform your transportation company's bottom line? Contact Cottingham & Butler to discover if your fleet's safety record and growth trajectory make you a captive candidate.

A janitorial employee was vacuuming the steps and floors. An observant worker realized that soon, dozens of employees and guests would be going down these steps on their way outside. This person then took the proper action to avert this potentially dangerous situation by plugging in the vacuum at a closer outlet, eliminating the trip hazard. Keep reading to learn more about slip and fall prevention. Do Your Safety Part An unguarded wet floor is only one of the many causes that accounts for millions of work-related injuries every year, which is why it is important to spot unsafe conditions that could lead to slips and falls, and do what you can to prevent them. There are various ways to suffer slips and falls while working. You can slip and lose your balance, you can trip over objects left improperly in your walkway or you can simply fall from an elevated position to the ground. To avoid slips and falls, be on the lookout for any substances on the floor, such as: Good Housekeeping Counts When entering a building from the outdoors or from debris areas, clean your footwear thoroughly. Snowy and rainy weather requires a doormat at each entrance to allow for complete wiping of shoes. Avoid running, walk safely and do not change directions too sharply. Beware of tripping hazards. Trash, unused materials or any object left in areas designed for pedestrian traffic invites falls. Extension cords, tools, carts and other items should be removed or properly barricaded off. If equipment or supplies are left in walkways, report it. Let the proper personnel remove it. And keep passageways clean of debris by using trash barrels and recycling bins. Practice Prevention Walk in designated walking areas. Short cuts through machine or cooking areas can cause accidents. Concentrate on where you are going - horseplay and inattention leave you vulnerable to unsafe conditions. Hold on to handrails when using stairs or ramps. They are there to protect you should a fall occur. If you’re carrying a heavy load that hampers your ability to properly go up or down the stairs, use the elevator or find help. The worst falls are from elevated positions such as ladders, and can result in serious injury or death. Learn and practice ladder safety. For example, use a ladder of proper length that is in good condition. Keep it placed on a firm surface. Do not climb a ladder placed on machinery, crates, stock or boxes. Keep the ladder’s base one foot away from the wall for every four feet of height. Don’t over-reach. Always have control of your balance when working from a ladder. Never climb a ladder with your hands full, and always transport tools in their proper carrying devices. Slips and falls occur every day. The extent of injuries and their recurrence can be minimized through proper safety knowledge, good housekeeping and practicing prevention.

Discover how to transform your organization's safety and efficiency through the powerful combination of lean manufacturing principles and safety practices. This webinar will reveal practical strategies for implementing continuous improvement initiatives that drive both operational excellence and workplace safety. Through real-world examples and proven methodologies, you'll gain actionable insights to launch or enhance your organization's continuous improvement journey.   LEARNING OBJECTIVES: Understand the strategic advantages of implementing continuous improvement initiatives and their impact on organizational success Differentiate between Lean and Six Sigma methodologies and determine the most effective approach for your organization Apply the seven fundamental types of waste identification in your operations while integrating crucial safety considerations Implement effective team-based improvement strategies through Rapid Improvement Events (RIE) and collaborative problem-solving Analyze real-world case studies demonstrating successful waste reduction initiatives, including measured ROI and safety improvements Click here to download the presentation.

Workplace hazard awareness training is essential for ensuring employee safety and preventing accidents. During such training, employees learn to recognize potential hazards in their work environment and take appropriate precautions. Whether it’s handling chemicals, operating machinery, or working at heights, hazard awareness empowers individuals to make informed decisions that contribute to a safer workplace. Remember, safety isn’t just a checklist—it’s an ongoing commitment. Regular training and reinforcement help create a culture of vigilance where everyone actively contributes to hazard prevention.   LEARNING OBJECTIVES: Understand the Importance of Hazard Recognition: Recognize that hazard awareness is a critical component of workplace safety. Appreciate how identifying hazards early prevents accidents and injuries. Learn Practical Hazard Identification Techniques: Explore visual cues and signs of potential hazards. Understand the role of situational awareness in hazard recognition. Discuss the use of checklists and job safety analysis (JSA) tools. Apply Hazard Recognition Skills in Real Scenarios: Practice identifying common workplace hazards (e.g., slips, trips, electrical risks). Discuss case studies or examples to reinforce learning. Promote a Safety Culture: Encourage employees to actively report hazards. Emphasize the collective responsibility for safety within the organization. Click here to download the presentation slides.