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

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

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

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

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

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

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

The 2025 Cottingham & Butler Collegiate Sales Invitational was an opportunity for top sales-focused college students to compete and test their skills. We welcomed 75 students and faculty, representing 10 different colleges, to our headquarters in Dubuque, IA. Beyond the competition, participants had a chance to sharpen their new skills, network with peers and professionals, and learn from leading sales professionals.  See below for photos from this incredible 2-day event. Feel free to download and share any of the pictures to your social media channels – please tag Cottingham & Butler! Want to learn more about our internship program or post-graduation opportunities? Discover the career opportunities that await at Cottingham & Butler!

The transportation industry is facing unprecedented challenges that traditional insurance approaches simply can't handle. While freight demand remains strong, the financial risks have evolved dramatically. Here's what you need to know, and why it matters to your bottom line right now. 1 - NUCLEAR VERDICTS: THE $50M REALITY The days of "good enough" coverage are gone. Nuclear verdicts aren't just increasing—they're exploding at a pace that threatens the viability of many carriers. A Florida fleet was hit with a $411M verdict in 2024 for a preventable accident involving a distracted driver. The average verdict against trucking companies jumped to $22.7M last year, up from $17.5M in 2023. The insurance market has responded by restricting coverage, raising premiums by 35-70%, and in some cases, exiting the transportation sector entirely. This leaves carriers with a dangerous combination of higher premiums and increased exposure.   WHY TRADITIONAL APPROACHES FAIL: Standard policies now contain exclusions specifically designed to limit carrier coverage in nuclear verdict scenarios 83% of carriers are unknowingly operating with critical coverage gaps Most safety programs lack the systematic documentation needed to defend against aggressive litigation The majority of brokers lack specialized transportation litigation expertise   TAKE ACTION NOW: Strengthen your safety program documentation—consistent, thorough records are critical for defense Ensure driver qualification files exceed FMCSA minimums—courts scrutinize hiring practices heavily Review your current policy limits and exclusions—many policies contain new limitations Consider excess liability coverage to protect against catastrophic verdicts 2 - CARGO THEFT GONE PRO: YOUR LOCKS WON'T SAVE YOU ANYMORE Organized crime has fundamentally changed cargo theft in ways most security protocols haven't addressed. The average loss per incident now exceeds $232,000, with pharmaceuticals, electronics, and consumer goods targeted through sophisticated cyber-physical attacks that bypass traditional security. According to CargoNet, thieves now research specific loads through online broker systems, use advanced signal jammers to disable tracking devices, and employ fictitious pickup tactics that make recovery virtually impossible with outdated security approaches.   THE NEW THEFT LANDSCAPE: Strategic cargo identification through digital channels Social engineering of warehouse and logistics personnel Sophisticated identity theft and carrier impersonation Coordinated multi-state operations with quick cargo redistribution Cyber attacks on load boards and transportation management systems   WHAT WORKS NOW: ·         Implement multi-layered security protocols beyond traditional methods ·         Deploy GPS tracking technologies with backup systems ·         Establish rapid response procedures for theft incidents ·         Verify carrier identity through multiple authentication methods ·         Consider specialized cargo insurance for high-value shipments   3 - HOW YOUR TECH UPGRADES JUST CREATED A MILLION-DOLLAR BLIND SPOT Your new technology investments create exposure your current policy doesn't cover. Period. When a hacked ELD system caused a major pileup in Texas, the carrier's standard policy left them with a $3.7M gap. The rush to adopt telematics, AI route optimization, and semi-autonomous systems has created a coverage gap that plaintiffs' attorneys are actively exploiting. The hard truth: 91% of transportation cyber policies were created for office systems, not operational technology. They simply don't address the unique risks created when digital systems control physical assets moving at highway speeds. THE TECHNOLOGY VULNERABILITY CYCLE: New technology adoption creates immediate exposure Standard policies exclude most technology-related incidents Specialized coverage typically lags 18-24 months behind innovation Technology vendors rarely accept liability for system failures CRITICAL COVERAGE CONSIDERATIONS: Standard cyber policies may not cover vehicle systems and telematics ELD and telematics data security requires specialized attention Technology liability may fall outside traditional coverage Review policies carefully for technology-related exclusions Consider specialized coverage for transportation technology risks   4 - THE DRIVER SHORTAGE LIE The real crisis isn't just finding drivers—it's the hidden costs of lowering standards to fill seats quickly. Companies sacrificing quality for quantity are seeing insurance costs rise by 34-78%, completely eliminating any operational gains from higher fleet utilization. The American Transportation Research Institute reports that just one preventable accident increases a driver's future crash likelihood by 87%, creating a dangerous spiral of increasing risk and cost. Meanwhile, companies maintaining strict hiring standards are actually seeing premium decreases despite the hard market. THE HIDDEN ECONOMICS: Driver quality impacts insurance costs more than any other single factor Inexperienced drivers cost 4.3x more to insure than veterans with clean records Comprehensive background checks prevent 95% of high-risk hires Systematic training reduces accident frequency by 47% in the first year THE HARD FACTS: Preventable accidents dramatically impact insurance costs for years Investing in driver retention often costs less than recruiting new drivers Comprehensive training programs reduce accident frequency Regular safety meetings and feedback sessions improve driver performance   5 - STOP PAYING FOR YESTERDAY'S INSURANCE The transportation insurance market has fundamentally changed, but most brokers are selling the same packages with higher premiums. The traditional annual renewal cycle leaves carriers perpetually behind the risk curve, paying for coverage designed to address last year's problems while facing this year's evolving threats. As America's largest transportation-focused broker, we've developed solutions that deliver tangible results in this new reality. CONSIDER A DIFFERENT APPROACH: Partner with a broker who specializes in transportation risk Look for partners who offer ongoing risk assessment, not just annual renewals Evaluate insurance programs that include proactive risk management Consider customized coverage options designed for your specific operations Request carrier-specific benchmarking data to understand your position in the market TAKE THE NEXT STEP:   Contact a Cottingham & Butler transportation insurance specialist to review your current coverage, identify potential gaps, and develop strategies to address these emerging industry challenges. As the transportation industry continues to evolve, so should your risk management strategy. This document provides industry insights based on proprietary research and client data. It is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

In today's evolving trade environment, Cottingham & Butler is committed to providing transportation leaders with actionable economic insights. Recent tariff policies represent a major shift that will reshape freight patterns, client relationships, and business planning for trucking companies nationwide. Our analysis highlights several critical economic signals transportation executives should monitor when developing strategies for the coming 12-18 months: The Freight Volume Challenge Key insight: Reduced imports will decrease freight volume in an already challenged industry. Tariffs function as a tax on imported products, raising prices and reducing consumer demand. This creates a direct impact on the transportation industry: Fewer imported goods means less freight arriving at ports Reduced loads for trucking companies to transport Intermodal shipping likely experiencing the most immediate volume decreases While transportation companies navigate these immediate challenges, some domestic manufacturing may eventually increase to offset import reductions. However, in our current low unemployment environment, U.S. businesses will likely struggle to increase production rapidly enough to counterbalance declining imports in the near term, creating a transitional period that requires careful navigation. Consumer Spending Ripple Effects Key insight: Higher prices on goods will reduce consumer spending power, affecting the entire supply chain. As tariffs increase prices on imported goods, consumers experience diminished spending power across the economy. This spending shift affects: Companies directly handling imported goods The entire domestic shipping network as overall consumer activity slows Retail and consumer-focused businesses' revenue streams Businesses importing goods typically must pass additional costs to consumers, leading to reduced demand that ripples throughout the supply chain. Financial Market Implications Key insight: Changing Treasury dynamics may create both challenges and opportunities. The tariff situation extends beyond direct freight impacts into broader financial implications: As foreign countries sell fewer products to the U.S., they accumulate fewer dollars to invest in Treasury bonds This relationship typically leads to higher interest rates on equipment financing and commercial real estate However, reduced Chinese Treasury sales could decrease bond supply, potentially driving mortgage rates below 5.5% If mortgage rates fall below this threshold, it could trigger increased housing construction, generating demand for materials, appliances, and home goods transportation. Companies recognizing this early can position their fleets to service this emerging sector while other traditional lanes adjust. Strategic Planning Framework Differentiated Tariff Timeline Key insight: Not all tariff situations will follow the same timeline. Many tariffs on trading partners other than China will likely be temporary negotiation tools, while Chinese tariffs appear positioned to remain in place longer. This creates a planning framework for evaluating which lanes and customers may face prolonged versus temporary disruption. Breaking development:  The tariff timeline has become even more complex with the April 23rd announcement of a national security investigation into imported trucks. The U.S. Commerce Department launched a Section 232 investigation that could form the basis for imposing new tariffs on commercial vehicles. Key points: Public comments are being sought through mid-May on domestic production capabilities and import dependencies Mexico, as the largest exporter of these trucks to the U.S., stands to be particularly affected Potential tariffs could increase imported truck prices by up to $35,000 per vehicle This represents a potential $2 billion annual cost increase for the industry Resilient Economic Sectors Key insight: Even as some sectors face challenges, others remain strong. Certain sectors remain insulated from tariff effects: U.S. service exports continue unaffected by current policies Our energy sector maintains global leadership due to superior fracking technology Transportation companies serving these industries may find stability while other sectors adjust Companies with established relationships in these resilient sectors may find themselves less affected by broader market shifts. Market Adaptation Strategy Key insight: Prepare for both short-term contraction and longer-term opportunities. While economic indicators suggest increased risk of a mild recession in the short term, historical patterns show markets adapt to new tariff regimes over time. Transportation companies should: Prepare operations for potential market contraction Simultaneously position for the subsequent recovery period Maintain operational flexibility while developing targeted strategies for both phases Moving Forward Cottingham & Butler remains dedicated to helping transportation clients navigate these economic shifts successfully. Our team of industry specialists is available to discuss how these tariff impacts might specifically affect your operations and help develop strategies tailored to your business. For more information or to schedule a consultation, contact your Cottingham & Butler representative today.

Stay compliant with the latest healthcare benefit updates, contribution limits, and important filing deadlines for employers. 2026 HSA and HDHP Limits Increase: What Employers Need to Know On May 1, 2025, the IRS released Revenue Procedure 2025-19 , providing the inflation-adjusted limits for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) for 2026. These annual adjustments help employees maximize their tax-advantaged healthcare savings. Key HSA Contribution Increases for 2026 For the upcoming year, employers and employees will benefit from the following increased contribution limits: Self-only HDHP coverage : HSA contribution limit increases to  $4,400  (up $100 from 2025) Family HDHP coverage : HSA contribution limit rises to  $8,750  (up $200 from 2025) Catch-up contributions : Remains at  $1,000  for individuals age 55 and older (not subject to inflation adjustments) HDHP Plan Design Changes for 2026 Employers sponsoring HDHPs should note these important cost-sharing limit adjustments: Minimum Deductible Requirements: Self-only coverage : Increases to  $1,700  (up $50 from 2025) Family coverage : Increases to  $3,400  (up $100 from 2025) Maximum Out-of-Pocket Expense Limits: Self-only coverage : Rises to  $8,500  (up $200 from 2025) Family coverage : Rises to  $17,000  (up $400 from 2025) Action Item : Employers should review their HDHP cost-sharing limits when preparing for plan years beginning in 2026 and update employee communications with these new contribution limits. Important Compliance Deadlines Approaching in 2025 RxDC Reports Due by June 1, 2025 The prescription drug data collection (RxDC) reporting deadline is quickly approaching. This mandatory annual filing requires detailed information on prescription drug and healthcare spending for the previous calendar year. What Employers Need to Know: Who must file : All group health plans including fully insured, self-insured, and level-funded plans Deadline : Sunday, June 1, 2025 (covering 2024 data) Reporting requirements : Plan-level information, enrollment data, premium data, and detailed medical/pharmacy benefit information Submission process : Reports must be submitted through the CMS online portal Most employer-sponsored health plans rely on their carriers, TPAs, and PBMs to provide necessary data and often submit reports to CMS on behalf of employer group health plans. Action Item : Contact your benefits administrator now to ensure your RxDC reporting is on schedule. Form 5500 Filing Deadline: July 31 for Calendar Year Plans Employers subject to ERISA must file an annual report ( Form 5500 ) for each employee benefit plan unless a filing exemption applies. Key Form 5500 Information: Deadline for calendar year plans : July 31, 2025 (for 2024 plan year) Extension option : 2.5-month extension available (until October 15, 2025) by filing Form 5558 by July 31 Filing exemption : Small welfare benefit plans (fewer than 100 covered participants) that are unfunded or fully insured Filing method : Electronic submission through the DOL's EFAST2 system Action Item : Employers with calendar year plans should begin gathering necessary documentation and work with service providers to ensure timely filing. Need Assistance with Healthcare Compliance? Contact your Cottingham & Butler team today for expert guidance on: Implementing the new HSA/HDHP limits Preparing your RxDC reports Completing Form 5500 filings Obtaining necessary information from carriers/TPAs Stay ahead of compliance requirements and maximize your healthcare benefits strategy for 2026.

At Cottingham & Butler, we understand the growing threat identity fraud poses to businesses today. As this type of crime continues to rise, we're committed to helping our clients implement effective prevention strategies. Our expertise can help your business identify vulnerabilities and establish robust security protocols to protect your operations. The Numbers Don't Lie Computer Safety Your computer is a gateway to sensitive information. When working at your computer: Never write down passwords where others can see them Lock your screen when you step away Use encryption when sending emails with personal information Credit Card Handling Payment transactions require extra vigilance. Always verify customer identity when accepting credit or debit cards as payment. This might mean checking signatures or asking for additional identification. Taking a few extra seconds during this process can prevent significant fraud issues later. Customer Information How we gather and share customer data is critical to preventing identity theft. Phone requests deserve special attention, as they're a common method used by identity thieves. Only collect personal data through approved company channels Verify identity before sharing or changing customer information Be careful with phone requests - these are common for fraud Keep your computer screen private during transactions When helping customers in person, position yourself so others can't view your screen. Never read personal information aloud where others might overhear. Paperwork Management Physical documents can be easily overlooked in security planning, but they're just as important to protect: Keep all receipts and documents with personal information secure Shred sensitive papers instead of throwing them away Don't leave customer paperwork out in the open Papers containing personal information should never be left unattended on desks or in common areas. Why This Matters By implementing these data security practices consistently, we create a strong defense against identity fraud. These measures protect not only our customers but also our company's reputation and trust in the marketplace. Everyone plays an important role in keeping information safe, regardless of their position. Security isn't just IT's responsibility - it belongs to each of us. According to the Identity Theft Resource Center, ransomware-related cyberattacks have doubled during each of the last two-year periods. This means now is the time for employers and HR teams to prepare for eventual cyberattacks by training employees and solidifying contingency plans. Contact a Cottingham & Butler representative today to strengthen your business's information security defenses.