Search Results

A 3–4 minute read for project owners, finance leaders, and risk teams . Food & Agriculture companies are making some of the largest capital investments they’ve made in decades — new plants, expanded processing lines, cold storage facilities, and increasingly automated operations, that carry material financial and operational risk long before production ever begins. In today’s builders risk marketplace, insurance decisions made during construction can directly impact project timelines, cash flow, and long‑term balance sheet outcomes. Understanding current market dynamics — and whether tools like Owner‑Controlled Insurance Programs (OCIPs) belong in the conversation — has become a strategic necessity, not an administrative exercise.  Below is a concise view of the current builder’s risk market, the coverage details that most often drive outcomes, and a plain language overview of OCIPs — an option many organizations have heard of, but few have evaluated properly.  The Current Builders Risk Marketplace   The builders risk marketplace is showing meaningful signs of strength, particularly for well-structured food and agriculture construction projects. Capacity has continued to expand, and carriers are actively seeking quality opportunities involving experienced developers, disciplined contractors, and clearly defined project scopes. While underwriting remains detail oriented, competition has increased — creating tangible opportunities for project owners who engage the market early and present risk effectively.  Key market dynamics shaping today’s environment include:  Improved carrier appetite and expanded capacity for clean food and ag projects, especially those with strong loss controls and reputable construction partners.  Increased pricing competition on well‑defined projects, with carriers willing to differentiate through terms, sublimits, and coverage enhancements — not just premium.  Higher construction values driven by labor, material, and equipment costs, making accurate reporting and limit strategy more important than ever.  Heightened underwriting focus on water damage, phased occupancy, and project timelines, particularly for cold storage, automation‑heavy facilities, and specialty processing operations.  Opportunities for broader coverage grants when owners can clearly articulate commissioning plans, equipment testing protocols, and contingency strategies.  For organizations willing to approach builders risk placement as a strategic exercise rather than a transactional purchase, the current market environment is favorable. Well‑positioned projects are seeing better outcomes across pricing, structure, and coverage — while less prepared risks are increasingly exposed to restrictive terms or late‑stage underwriting friction. The difference lies in how deliberately the project and its insurance strategy are aligned from the outset.    Key Coverage Considerations When Evaluating Builders Risk Options   In today’s builders risk environment, coverage structure often matters as much as pricing. For food and agriculture projects — where margins, timelines, and equipment performance are tightly linked — small coverage decisions made during construction can create outsized financial consequences after a loss. A thoughtful review should focus not only on what is covered, but how and when coverage responds.  Several areas warrant particular attention:   Soft costs and delay‑in‑completion coverage, designed to protect against lost revenue, continued fixed expenses, and additional financing or operational costs caused by covered delays. These exposures are frequently underestimated — and often uncovered — until a setback occurs.  Equipment testing and commissioning coverage, which is critical for projects involving automated processing lines, refrigeration systems, or specialty equipment where losses often surface during startup rather than construction.  Catastrophe protections such as flood, wind, and earthquake, which remain highly location‑dependent and are commonly subject to sublimits, waiting periods, or restrictive conditions that vary widely by carrier.  Coverage for materials in transit, off‑site storage, and temporary works, all of which are essential on projects facing supply chain disruptions or phased delivery schedules.  A clearly defined project period, including provisions for early occupancy, partial handover, or phased startup — scenarios that can unintentionally terminate or limit coverage if not addressed upfront.  These coverage details are not academic. They determine whether a builders risk policy meaningfully protects the project’s financial outcome — or simply satisfies a contractual requirement. In many cases, the most impactful improvements come not from changing carriers, but from asking better questions earlier in the process.  What Is an OCIP — and How Can It Benefit Your Project?  An Owner Controlled Insurance Program (OCIP) is a project‑specific insurance program purchased and managed by the project owner. Instead of each contractor and subcontractor providing their own insurance, key coverage is consolidated under a single, coordinated program for the duration of the project. Most utilized for General & Excess Liability.  For large food and agriculture construction projects — particularly those involving multiple contractors, long timelines, or phased expansions — OCIPs can offer a more intentional way to manage cost, coverage consistency, and risk across the entire jobsite. While not appropriate for every project, OCIPs are often overlooked simply because they are unfamiliar.  When structured correctly, OCIPs can deliver meaningful advantages, including:  Cost efficiency, by eliminating overlapping contractor insurance premiums that are otherwise built into project bids.  Uniform coverage terms and limits, ensuring all parties on the project operate under the same insurance structure, without gaps or inconsistencies.  Centralized claims management, providing greater visibility, faster resolution, and clearer accountability if an incident occurs.  Enhanced loss control and safety oversight, supported by a single, coordinated program rather than fragmented contractor approaches.  Predictable insurance budgeting, particularly beneficial for large, multi‑year or multi‑phase facility expansion plans.  OCIPs are not a one size‑fits‑all solution. Their value depends on project size, complexity, contractor mix, and risk tolerance. However, when evaluated thoughtfully and early in the planning process, they can be a powerful tool for aligning insurance strategy with broader project objectives — an option that many organizations never fully explore because their broker never brings it to the table.  Closing Perspective  Construction projects represent more than bricks, steel, and equipment — they represent capital at work and growth in motion. In a builders risk marketplace that continues to evolve, and with delivery models like OCIPs becoming more relevant for complex projects, the most successful owners are those who treat insurance as part of the planning process, not an afterthought. Evaluating market conditions, coverage structure, and alternative approaches early can help reduce friction, control cost, and protect outcomes long before a facility comes online.  At Cottingham & Butler, we work extensively with food and agriculture organizations navigating large construction projects, facility expansions, and multi‑phase developments. Our role is not simply to place insurance, but to help clients understand how market dynamics, coverage details, and program structure intersect with their broader project and financial objectives. For companies with a project on the horizon, a forward-looking conversation can often surface opportunities and considerations that traditional, transactional approaches miss — creating clarity, confidence, and better alignment as ground is broken.  If you have a facility project upcoming — or even in early planning — we’re always available to pressure test the insurance strategy, identify potential gaps, and outline options worth considering.

Staying compliant in 2026 means keeping pace with a benefits landscape that isn't slowing down. From new legislation and regulatory updates to evolving employer obligations, the details matter, and missing them can be costly. Our 2026 Compliance On-Demand Series is designed to keep you informed, prepared, and confident heading into every quarter. Check out the full recordings of past webinars below! Want to catch us live? Check out our upcoming webinars! ACA Employer Reporting Check out our latest webinar on ACA employer reporting, held right in the midst of the 2025 filing season. We walked through the key requirements for Forms 1094 and 1095 and highlighted common pitfalls, best practices, and practical tips to ensure accurate, complete, and compliant reporting. ERISA Fiduciary Duties This session is on ERISA fiduciary duties for health and welfare plans, designed to help employers understand their obligations as plan sponsors. We reviewed key ERISA requirements, highlight common compliance pitfalls, and shared practical best practices to minimize fiduciary risk.  Navigating Employer-Sponsored Coverage & Medicare During this time we discuss how Medicare interacts with employer-sponsored health plans, an increasingly important topic as more employees continue working past age 65. We broke down eligibility and enrollment timing for Medicare Parts A, B, and D, clarify how Medicare Secondary Payer (MSP) rules impact group plan coordination, and highlight key considerations such as HSA eligibility, COBRA timing, and employer premium reimbursements.

Where did you attend college, and what was your major? I attended Clarke University and received a degree in Business Administration! How did you first hear about Cottingham & Butler and the intern program? I toured Cottingham & Butler during my freshman year in an introduction to business class. Nikki Goodchild was the campus recruiter at the time and gave our class a presentation in the lower level of the building. I left the site visit and immediately told all my friends and family that it was my dream to work at Cottingham & Butler someday. I knew the internship program was very competitive so I completed three different internships after that freshman classroom visit to prepare. In the fall of my junior year, I interviewed and was offered an internship position with Human Resources.  Describe your experience in the Cottingham & Butler internship program. What did you learn during the program that you still use today in your full-time position? My internship experience was life-changing. I had a whole team of individuals who helped me complete my final project to highlight my hard work and eagerness to work at the company full-time. The internship pushes you outside your comfort zone, provides real-world experiences, and prepares you for a career after college. I still use the organization skills, presentation concepts, and meeting etiquette that I learned from the internship experience every day. The internship taught me to jump in and never give up, which I feel is a lifelong lesson. I also made incredible friends that I'm still close with to this day. In short, the internship was my launchpad to a fulfilling professional career. What’s your favorite memory from your time as an intern?  My favorite memory from the internship was a Saturday afternoon river float down the Maquoketa River. Our internship class was very close and we wanted to spend time outside of work making memories. We spent the afternoon on the river laughing and enjoying our time together.  What do you think the Cottingham & Butler internship program offers that other internships don’t? The Cottingham & Butler internship allows you to work on real projects that will impact the company. I completed a benefits benchmark survey that involved 30 other companies both local and nationwide. It was utilized both internally to vet our benefits package and with our employee benefits division for their client analysis. The project was referenced for years after its completion and had a major impact on our offerings. The internship helps you understand what a real job will be like after college and provides you with a team that cares about you and your success.  What drew you back to Cottingham & Butler after graduation?  After my internship, I stayed on part-time through my last semester of school to help the Human Resources team. I continued to learn more about Human Resources and ultimately started full-time after graduation as a Human Resources Generalist. I loved the team and the company as a whole, so it was no surprise I wanted to stay on for the future. I had also attended college in Dubuque and loved the city, so I was excited to begin my life as a young adult in Cottingham & Butler and Dubuque.  How have you seen yourself evolve as a professional at Cottingham & Butler?  I began my career as a Human Resources Generalist, but have experienced a lot of growth in my time here. I eventually advanced to Benefits & Payroll Specialist, then Human Resources Supervisor, and finally my current role as Human Resources Manager. Cottingham & Butler continuously pushes you to the next level and rewards hard work. I didn't know a single thing about Human Resources when I began my internship and now I'm considered one of the experts on the Human Resources team . I know I want to continue my career at Cottingham & Butler because I'm truly in love with my job. This is a company that continues to grow, and so opportunities are endless.  What do you love most about your current role?  My favorite part of my position is providing resources to employees so they can be successful in their careers. In Human Resources, we like to say that our "clients" are the employees of Cottingham & Butler. We're an integral part of the company's story. Every day we're faced with new challenges — no days look the same. The people at this company make me want to come in every day and do my best. Why should college students consider the Cottingham & Butler internship program?  The Cottingham & Butler internship is a first-class program. You work on projects and immerse yourself in the day-to-day of a real company. The people of Cottingham & Butler are there to enhance your skillset and to challenge you to be the best version of yourself. You have a community that is unmatched and resources to prepare you for a career of a lifetime.

The manufacturing sector has experienced rapid technological advancements over the past few years. Innovations like artificial intelligence (AI), smart machinery, equipment monitoring software, digital sales systems and analytics platforms continue to reshape the industry.   Although the technological advancements provide several benefits, they also present additional cybersecurity exposures. They expand the attack surface for cyberthreats, and resulting cyberattacks can potentially cause significant disruptions, reputational damage and financial losses.   Robust cybersecurity measures are essential to protect sensitive data and ensure business continuity. Manufacturing business leaders should take proactive steps to safeguard their operations, finances and reputations. This article examines why cybercriminals target manufacturers, explores common types of cyberattacks and offers tips for cybersecurity best practices. It also discusses the role of cyber insurance in mitigating risk.   Why Cybercriminals Target Manufacturers Cybercriminals often look to industries they can exploit. There are several reasons cybercriminals target manufacturers, including: Valuable intellectual property —Manufacturers possess numerous proprietary designs, valuable trade secrets and innovative processes that are attractive targets for cyber espionage. Operational disruption potential —Manufacturing businesses play an integral part in many global supply chains, and interrupting manufacturing processes can lead to significant financial losses and severe reputational damage. These factors make manufacturing companies appealing targets for ransomware attacks, as malicious actors may believe these organizations are more likely to pay ransom to restore operations despite recommendations against doing so. Supply chain interconnectedness —Manufacturers are involved in complex supply chains; compromising one link could create an entry point to several other entities within the chain. Perceived weaker security —Some manufacturers may prioritize production efficiency over cybersecurity. Cybercriminals may look to exploit those weaknesses. Expanded attack surface —The adoption of IoT devices, cloud-based systems and interconnected machinery increases the attack area and entry points for cybercriminals, making manufacturers more vulnerable to attacks.   Common Types of Cyberattacks While cybercriminals have many methods of infiltration, certain types of cyberattacks are common in the manufacturing industry. Each of the following attacks has a different purpose and impact: Ransomware attacks —These are a prevalent attack type within the manufacturing industry. They occur when a hacker installs malicious software that encrypts an organization’s critical data and informs the company leaders that they will not release the data until a payment is made. Ransomware attacks are utilized for quick financial gain and to disrupt operations. If an organization falls victim to such an attack, it may experience severe business interruptions, reputational harm and financial losses. Industrial espionage —This scheme occurs when a malicious actor gains access to sensitive data and intellectual property, which is then stolen, sold or leveraged for competitive advantage. A company could lose market share and its competitive edge if this occurs. Supply chain attacks —Cybercriminals can infiltrate multiple organizations through a single weak point in a supply chain. Supply chain attacks take advantage of the interconnectedness of an extended supply network. This type of attack can have a cascading effect across multiple organizations, potentially disrupting the entire supply chain. Insider threats —Individuals with authorization to enter an organization’s network or data—including current or former employees, contractors and business partners—can intentionally or accidentally steal sensitive information, sabotage systems or facilitate internal attacks. Due to their insider knowledge and access, these threats can result in severe financial, reputational and operational consequences. Cybersecurity Best Practices To help combat cybersecurity risks, manufacturing business leaders should bolster their digital defenses. In particular, these companies should consider the following best practices:   Adopt zero-trust architecture . Business leaders should assume that any user or device could be an entry point for a breach. Defaulting to a “never trust, always verify” principle and implementing strict role-based access controls and least-privilege principles can help safeguard information by only allowing users access to the information needed to do their jobs. Implement multifactor authentication (MFA) and encryption . MFA, which requires users to provide at least two verification factors to access data, should be enforced for all employees, especially for entry into critical systems. Sensitive data, including intellectual property and design files, should be encrypted so cyber intruders cannot easily decipher it. Bolster supply chain cybersecurity . A hacker can gain access to a manufacturer’s network through a weak link in the supply chain. Business leaders should only partner with third-party vendors and suppliers with strict cybersecurity protocols and continue monitoring their security postures. Including cybersecurity requirement clauses in vendor contracts can also mitigate risks. Conduct regular security audits and vulnerability assessments . Schedule routine cybersecurity audits with penetration testing to find weak points in networks and systems before they are exploited. Businesses should establish response plans to address any vulnerabilities found. Vet employees and provide robust cybersecurity training . Employees should undergo a background check before they are hired. Once on the job, they should receive regular training on cybersecurity best practices. This fosters a culture of security, encouraging employees to report suspicious activity and minimize human error. Store backup data . Saving three copies of error-free data on two types of media, with one copy off-site and one copy offline or air-gapped, can help ensure business continuity if a cyberattack, such as a ransomware attack, occurs. Utilize technology and patch software . Installing advanced antivirus and malware protection software and using patch management systems to ensure software updates can help prevent malware from infecting systems. Technologies such as AI and machine learning can also be leveraged to detect unusual activity within a system. Segment networks and have a cyber incident response plan . Keeping networks segmented can limit malicious actors’ access to sensitive information by restricting their lateral movement within the network. Having a cyber incident response plan in place can further address cyber risk by helping an organization respond effectively to an attack while minimizing its impact. Role of Cyber Insurance in Mitigating Risk Even with robust cybersecurity measures, cyber incidents can still occur. Cyber insurance can help mitigate a business’s exposure to cyber-related damages by covering losses arising from cybersecurity incidents. It can also provide financial assistance for data recovery, legal liabilities and business interruptions resulting from a cyberattack. Importantly, cyber insurance complements rather than replaces strong cybersecurity practices.   Many cyber insurance policies provide access to a vendor panel with legal counsel, public relations firms, IT specialists and other experts who are experienced in managing cyber incidents. This can help manufacturing businesses respond quickly and effectively to reduce the impact on their finances, reputations and operations. These experts can also assist in navigating the complex and evolving regulatory landscape.   Cyber insurance policies vary in coverage, limits and exclusions. Consulting a licensed insurance professional can help businesses choose the right policy to meet their needs.   Conclusion   Manufacturing businesses encounter several cyber risks due to the nature of their operations and the information they store and process. Implementing strong cybersecurity protocols and securing a cyber insurance policy can help these companies’ leaders address these exposures and safeguard their business’s data, finances and reputations.

Although rising production demands and government funding have fueled widespread expansion and economic growth across the manufacturing industry in recent years, the sector is now facing a complex risk landscape. Between rapid digital transformation, evolving geopolitical forces and shifting labor demographics, the sector is contending with significant uncertainty. In the commercial insurance market, well-managed manufacturing businesses have benefited from pricing moderation and softening conditions in certain property lines. However, most casualty and specialty lines—especially cyber insurance—remain challenging, with insurers adopting more selective risk appetites and prioritizing accounts that demonstrate data-driven loss control initiatives.   In the current environment, several risks could undermine the sector’s future stability. As such, manufacturing businesses should monitor emerging developments that may impact their operations and insurance portfolios this year—including technological advancements, cybersecurity threats, supply chain challenges and workforce changes—and adjust their risk management programs accordingly. This article outlines manufacturing sector trends to watch in 2026 and offers strategies to help navigate them.   Technological Advancements Workplace technology continues to advance in the manufacturing sector, with artificial intelligence (AI) tools, Internet of Things (IoT) devices, smart machinery and other digital solutions helping businesses streamline workflows and maximize operational efficiencies on the production floor. According to a recent report from Rockwell Automation, over half (56%) of manufacturers are piloting smart manufacturing technology, while 20% are using it at scale and another 20% are planning future investments. Nevertheless, increased reliance on such technology can shift manufacturing companies’ larger risk profiles. In the event of system failures or outages, impacted businesses could face prolonged operational disruptions, production delays and related losses. This technology also collects vast amounts of sensitive information, making manufacturing businesses increasingly vulnerable to costly breaches and data exposure. In light of these concerns, insurers have begun implementing stricter underwriting requirements (e.g., risk modeling, data governance and predictive maintenance) for businesses that use AI tools, IoT devices and other advanced software in their operations to ensure technological resilience and limit the likelihood of associated business interruption and cyber claims. As manufacturing companies adopt these solutions, they must consider the unique risks that this technology poses, communicate openly with insurers to determine necessary safeguards and data-driven metrics, and address potential disruptions in their business continuity plans. Cybersecurity Threats Especially as a growing number of manufacturing businesses integrate technology within their operations and allow their digital supply chains to become more interconnected, this introduces additional cyber exposures. What’s worse, some of the sector’s latest technology is evolving so quickly that it’s outpacing the software being developed to protect it, leaving it susceptible to cyberattacks. AI-amplified threats, IT vendor vulnerabilities and other third-party cyber risks have become particularly prevalent, often contributing to lasting disruptions and costly losses across the manufacturing sector. According to cybersecurity firm BitSight, threat actors targeted manufacturers more than any other industry in 2025, highlighting the expanding severity of cyber exposures. In this landscape, cyber insurance remains paramount; however, manufacturing companies are likely to encounter competitive market dynamics, stringent underwriting standards, higher premiums and more restrictive coverage terms as insurers attempt to offset surging losses. To help address these challenges, it’s best for manufacturing businesses to maintain strong cyber hygiene practices (e.g., routine staff training, strict access controls, advanced threat detection software, patch management systems, frequent data backups and incident response planning), carefully vet potential IT vendors, and ensure all technology-related policies and procedures align with underwriting requirements. Supply Chain Challenges Sweeping geopolitical tensions, global transportation delays and extreme weather events continue to fuel manufacturing inventory shortages and sourcing issues for various raw materials. Complicating matters, emerging tariffs and trade policies are generating greater economic turbulence and, consequently, threatening manufacturers’ current sourcing strategies. These supply chain difficulties can cause widespread communication breakdowns regarding available inventory, prolong production timelines, delay the delivery of finished goods and, in turn, compound operational expenses. As a result of these issues, reshoring and onshoring have gained momentum throughout the manufacturing sector, with many companies moving their operations to domestic locations and investing in local or regional suppliers whenever possible. According to global manufacturing and supply chain company Fictiv, over two-thirds (68%) of industry leaders are prioritizing onshoring tactics to bolster supply chain resiliency. As supply chain challenges press on for the foreseeable future, manufacturing businesses should review their existing sourcing practices to determine whether changes are necessary and leverage alternative strategies to maintain resilient operations. This may entail implementing more advanced inventory management policies, building strong supplier relationships, using tracking technology to uphold supply chain visibility, and developing contingency plans to manage possible disruptions. Manufacturers should also review their business interruption policies to ensure coverage addresses evolving supply chain exposures and, if needed, consider customized risk transfer solutions. Workforce Changes The U.S. workforce is aging, with baby boomers accounting for a considerable share of the labor market. This poses serious workplace safety risks, as multiple studies have found that older employees are more susceptible to severe occupational injuries and related workers’ compensation claims than their younger counterparts. Given that the National Safety Council reported that the manufacturing sector currently holds the highest recordable injury and illness rate per 10,000 workers across all industries, this trend is particularly concerning. Even as baby boomers retire and exit the workforce, manufacturers will have to grapple with worsening labor shortages. In response, they may have to hire and upskill less experienced employees to fill talent gaps. This poses similar safety risks, as OSHA data shows that nearly one-third of occupational injuries and associated workers’ compensation claims occur among employees in their first year on the job. To address labor challenges and keep workers’ compensation costs under control, manufacturing businesses should adopt proactive HR practices and staff retention strategies (e.g., improved working conditions, competitive pay, and consistent career growth and skills development opportunities). They should also establish a strong safety culture by providing employees of all experience levels with proper training and resources on common workplace hazards. Manufacturing businesses should be sure to document these initiatives for their insurers to support better underwriting outcomes.   Conclusion Several trends are currently impacting the manufacturing sector, emphasizing the importance of staying informed and adaptive. By tracking these developments and mitigating any associated exposures, manufacturing businesses can foster long-term growth, boost operational efficiency and address their unique insurance needs. Contact us today for additional industry-specific risk management tips and coverage solutions.

Despite various ups and downs in recent years, the construction sector has consistently driven significant economic growth, positioning contractors and project owners for success. In addition, softening conditions across much of the commercial insurance market have helped some well-managed construction businesses secure more favorable coverage terms and pricing. Although certain segments, namely commercial auto and excess liability, remain under pressure, most lines of coverage have begun demonstrating healthy competition and capacity. However, there are still some risks that, left unmanaged, may threaten the sector’s stability moving forward. As such, construction businesses should monitor several emerging developments that could impact their operations and insurance portfolios this year—including labor challenges, valuation concerns, litigation issues and technology advancements—and adjust their risk management programs accordingly. This article outlines construction sector trends to watch in 2026 and offers strategies to help navigate them.   Labor Challenges The U.S. workforce is aging, with baby boomers accounting for a considerable share of the labor market. This poses serious workplace safety risks, as multiple studies have found that older employees are more susceptible to severe occupational injuries and related workers’ compensation claims than their younger counterparts. Considering that the Bureau of Labor Statistics already deems the construction sector one of the most dangerous industries due to its above-average injury and fatality rates, this trend is particularly concerning. Even as baby boomers reach retirement age and exit the workforce, construction businesses will have to contend with worsening labor shortages and may have to hire less experienced employees to fill talent gaps. This carries similar safety risks, as OSHA data shows that nearly one-third of all occupational injuries and associated workers’ compensation claims stem from employees in their first year on the job. Evolving OSHA and American National Standards Institute (ANSI) guidelines on fit-for-purpose personal protective equipment (PPE) and comprehensive safety training programs may help minimize these risks; however, they also introduce new compliance considerations. To combat labor challenges and keep workers’ compensation costs under control, construction businesses should adopt effective staff retention strategies (e.g., better working conditions, competitive pay and career growth opportunities); provide routine safety training for employees of all experience levels; and invest in technology that may help mitigate occupational hazards (e.g., wearable safety devices). Construction businesses should also ensure their occupational safety programs comply with all OSHA and ANSI standards. Valuation Concerns Ongoing geopolitical conflicts continue to fuel supply chain difficulties, limiting availability and driving up the prices of many raw materials. Making matters worse, fluctuating tariffs on internationally sourced goods could prompt even greater supply chain concerns in the months ahead and, in turn, further exacerbate material costs. In the construction sector, these rising expenses are mainly affecting steel, aluminum, copper, softwood lumber and timber, all of which are critical building components. According to the National Association of Home Builders, tariff-induced increases in material prices could raise U.S. construction costs by millions of dollars. With elevated material costs making projects more expensive to complete and influencing property values, construction businesses are at risk of serious underinsurance issues. Such valuation inaccuracies may be particularly prevalent among commercial property and builders risk policies. In any case, these coverage gaps could leave construction businesses with substantial out-of-pocket costs amid potential claims. To help prevent valuation concerns and related losses brought on by rising material costs, construction businesses should build strong relationships with multiple trusted suppliers; address possible delay-in-completion issues stemming from supply chain disruptions in building contracts; regularly review and update property values across applicable insurance policies; and, if necessary, invest in specialized coverage (e.g., parametric insurance) to fill gaps in protection. Litigation Issues In today’s litigious society, social inflation—the ever-rising costs of insurance claims and lawsuits above the general inflation rate—has become a pervasive problem for businesses across industry lines. Several factors are currently contributing to social inflation, including growing corporate distrust, a rise in alternative attorney financing strategies (e.g., third-party litigation funding) and nuclear verdicts—jury awards exceeding $10 million. According to communications firm Marathon Strategies, 135 corporate lawsuits resulted in nuclear verdicts in 2024 alone, representing a 52% increase from the previous year and amounting to $31.3 billion in total losses. While these verdicts spanned 55 different industries, the construction sector was among the top 10 contributors. Key causes of litigation and associated nuclear verdicts against construction businesses include third-party injuries stemming from unaddressed job site hazards or damages due to faulty work. When this litigation occurs, it often exceeds standard liability policy limits, potentially resulting in major financial losses for impacted businesses. Such litigation is placing the greatest pressure on the general and professional liability segments, as well as on umbrella and excess liability programs, prompting stricter coverage terms and higher premiums. As litigation issues persist, it’s imperative for construction businesses to conduct frequent inspections during projects to ensure safe jobsite conditions and quality work, coordinate with legal counsel to tighten building contracts and establish indemnity language that provides ample protection amid potential disputes, consider higher retentions for applicable liability policies, and explore alternative risk transfer solutions (e.g., captives and structured fronting) as needed. Technology Advancements Businesses and insurers are increasingly embracing advanced technology solutions to improve operational visibility and enable data-driven risk management. The construction sector is no exception to this trend, with many contractors and project owners investing in solutions such as telematics, drones, and smart sensors that can be attached to workplace equipment and PPE. These solutions can monitor employee behavior and the work environment in real time, allowing for prompt hazard detection and mitigation. Using the data collected by such technology, construction businesses can also better identify potential patterns among jobsite accidents and related insurance claims, adjusting their operations when necessary to prevent future losses. When this data is shared with insurers, they can integrate it into the underwriting process and create more accurate risk profiles for policyholders. Furthermore, businesses that use advanced technology solutions are more likely to attract favorable pricing from insurers by demonstrating a clear commitment to risk management. With this in mind, it’s crucial for construction businesses to consider adopting such technology (if they haven’t already) and collaborate with insurers to make the most of the data it collects.   Conclusion Several trends are currently impacting the construction sector, emphasizing the importance of staying informed and adaptive. By tracking these developments and mitigating any associated exposures, construction businesses can foster long-term growth, boost operational efficiency and address their unique insurance needs. Contact us today for additional industry-specific risk management guidance and coverage solutions.

Manufacturing settings carry a wide range of risks, largely due to the use of complex machinery and equipment and potentially hazardous materials. As such, properly servicing equipment is essential to maintain smooth operations and avoid potential losses. Without sufficient servicing measures in place, manufacturing equipment could have a shortened lifespan and be more prone to malfunctions and breakdowns. In these instances, manufacturing companies could face a number of consequences, including widespread production inefficiencies, heightened workplace safety hazards, prolonged business disruptions, lasting reputational damage, and considerable regulatory and insurance penalties.   Considering these implications, it’s vital for manufacturing companies to take equipment maintenance seriously and ensure effective servicing measures, thereby safeguarding their operations and bottom line. This article provides more information on the possible ramifications of poor equipment maintenance, highlights the value of taking a proactive maintenance approach and offers best practices for servicing equipment in the manufacturing sector.   The Risks of Poor Equipment Maintenance When manufacturing equipment isn’t serviced properly, it can cause various problems. Key risks include: Workplace accidents —Poorly serviced equipment is less likely to operate as intended on the production floor, often putting extra strain on certain parts and mechanisms and consuming excessive amounts of energy. This could make the equipment more susceptible to issues such as power surges, short circuits and misalignment, all of which could seriously injure—or even kill—nearby employees. The safety guards on this equipment could also become less effective, making workers increasingly vulnerable to injuries and fatalities. Operational losses —If poorly serviced equipment malfunctions or breaks down, it could disrupt the entire production process, potentially putting operations on pause for an extended period. This can prompt large-scale operational losses, including diminished production capacity, missed deadlines, reduced profitability and client dissatisfaction. Depending on the severity of the disruption, this could lead to long-term reputational damage and threaten overall financial stability. Production quality concerns —Poorly maintained equipment is also more likely to generate defects during the production process, reducing the quality of finished parts or products. In some cases, these defects may be so severe that they force the parts or products to be scrapped or reworked, driving up operational waste. If major defects aren’t detected in time, they could put consumers at risk following distribution and eventually lead to product recalls. These incidents can cause further reputational losses and make securing future business all the more challenging. Regulatory issues —Multiple federal agencies and organizations—including OSHA, the U.S. Food and Drug Administration (FDA) and the U.S. Consumer Product Safety Commission (CPSC)—have specific standards in place regarding proper servicing measures for manufacturing equipment, especially as it pertains to reducing occupational hazards and ensuring the safe production of certain goods. Failure to abide by these standards could result in substantial regulatory penalties. Insurance and litigation challenges —Incidents and associated losses stemming from poorly serviced equipment may not receive protection under some insurance policies (e.g., commercial property and equipment breakdown), prompting rejected claims, invalidated coverage and significant out-of-pocket expenses. Even if some policies do cover such losses (e.g., workers’ compensation and product liability), excess claims could lead to premium increases, stricter underwriting standards and limited capacity going forward. Furthermore, incidents caused by poorly serviced equipment may result in costly litigation, particularly if other parties were injured or otherwise harmed by such equipment. The Value of a Proactive Maintenance Approach In light of the ramifications posed by poorly serviced equipment, it’s imperative for manufacturing companies to adopt a proactive rather than reactive maintenance approach, allowing them to detect and remedy potential equipment problems before they escalate and cause major disruptions and losses. Such an approach generally entails: Conducting routine equipment inspections and maintaining detailed records on equipment issues and related repairs Investing in advanced technology solutions (e.g., artificial intelligence and Internet of Things devices) that leverage real-time monitoring and predictive analytics to assess equipment performance, send alerts regarding possible problems and make tailored maintenance recommendations Regularly training employees on proper equipment maintenance protocols, including how to recognize potential signs of poorly serviced equipment and timely intervention tactics   Altogether, this type of approach has been proven to minimize malfunctions and breakdowns on the production floor, limit operational downtime, and extend the total lifespan of manufacturing equipment. Best Practices for Servicing Equipment In conjunction with a proactive maintenance approach, manufacturing companies should consider the following best practices for servicing their equipment:   Establish personalized schedules. Equipment maintenance isn’t a one-size-fits-all operation; servicing needs will differ based on the type of equipment and how often it’s used. With this in mind, manufacturing companies should conduct in-depth assessments for each type of equipment found on the production floor, using this information to determine the most appropriate servicing intervals. Prioritize critical equipment. While all equipment needs to be properly serviced, manufacturing companies should make sure the equipment deemed most essential to their operations receives the utmost care and attention, thus limiting the likelihood of disruptions in the production process. This may entail conducting more frequent inspections of critical equipment and keeping plenty of extra parts on-site to allow for speedy repairs. In addition, if certain elements of equipment maintenance (e.g., real-time monitoring via advanced technology solutions) need to be allocated due to budget constraints, vital equipment should receive first priority. Develop strong vendor relationships. Manufacturing companies should build positive relationships with qualified vendors they can trust to service their equipment and make necessary repairs. These vendors should be able to clearly demonstrate their expertise, provide proof of required industry certifications and have a good safety record. When vendors conduct equipment maintenance and repairs, these activities should be well-documented to support any related safety audits, regulatory reviews and insurance claims. Maintain compliance.  Manufacturing companies can work with legal counsel to determine all applicable OSHA, FDA, CPSC, and state and local requirements regarding equipment maintenance, making operational adjustments as needed to ensure compliance. Foster a safety culture.  Finally, manufacturing companies should work with senior leadership and management to instill a workplace culture that prioritizes occupational safety and production quality over time-saving or cost-cutting measures. In doing so, manufacturing companies can emphasize the importance of properly serviced equipment and ensure employees don’t feel pressured to cut corners during maintenance tasks or use malfunctioning equipment, thus reducing the risk of associated accidents and injuries. Conclusion Well-maintained equipment can make all the difference in promoting successful manufacturing operations. Manufacturing companies can avoid costly incidents and lasting losses by understanding the risks of poorly serviced equipment and adopting a proactive maintenance approach and associated best practices. Contact us today for additional industry-specific risk management guidance.

Building and repairing roadways and maintaining nearby utilities are common projects in the construction sector. Yet, operating in work zones—stretches of highway where construction, maintenance and utility tasks are taking place—can pose a number of safety hazards. These hazards can have significant ramifications, affecting construction workers, motorists and pedestrians. According to the Centers for Disease Control and Prevention, 96,000 roadway crashes occur in work zones each year, resulting in nearly 37,000 injuries and 900 fatalities. Considering these findings, it’s imperative for construction employers to implement proper safety precautions in work zones, therefore protecting both their staff and the public. This article outlines key work zone hazards and offers related mitigation strategies.   Common Work Zone Hazards Work zones carry several safety hazards, largely due to construction employees working near busy roadways, dump trucks entering and exiting construction areas, flaggers redirecting traffic and lanes shifting unexpectedly. These conditions can distract unsuspecting pedestrians and motorists and hinder construction workers’ visibility, prompting serious crashes and other incidents. The top hazards stemming from work zones include: Caught-in and -between incidents —These incidents refer to an individual becoming squeezed, pinched or compressed between multiple objects or parts of an object. Such incidents can occur in work zones if construction employees or pedestrians get crushed or otherwise caught in heavy operating equipment or machinery on the roadway. Struck-by incidents —These incidents involve an individual getting hit by a moving object or piece of equipment. Such incidents can occur in work zones if motorists and equipment operators collide or strike nearby construction employees or pedestrians while traveling on the roadway. Growing funding for highway restoration projects has contributed to a surge in roadway construction and associated work zones throughout the country. This trend, combined with high speed limits, extensive traffic congestion and impatient motorists, has only compounded work zone safety hazards and related injuries and fatalities over the past decade, according to the National Highway Traffic Safety Administration. When work zone incidents occur during their assigned projects, construction employers may face various consequences. In addition to the tragic loss of life that these incidents can cause, employers could encounter costly workers’ compensation claims from injured employees, diminished staff morale and productivity, large-scale lawsuits from impacted motorists and pedestrians (or their bereaved loved ones), lasting reputational damage and compounded insurance expenses. As such, it’s crucial for construction employers to take work zone hazards seriously and utilize adequate mitigation measures. Mitigation Strategies There is a range of safety precautions that construction employers can leverage to minimize work zone hazards and prevent potentially devastating incidents. Here are some best practices to consider: Establish a safety program.  This program should outline safe operating procedures for machinery and equipment, highlight personal protective equipment (PPE) requirements for different tasks, and encourage open communication between employees and supervisors to discuss ongoing occupational hazards. As it pertains to work zones, an effective safety program should include the following protocols: Employees must conduct pre- and post-shift inspections of machinery and equipment, conducting maintenance and repairs as needed. Staff should never operate broken, defective or otherwise damaged equipment. High-visibility PPE (i.e., reflective hats and vests) must be worn at all times in work zones. Employees need to make visual contact and communicate with all nearby workers, especially those on foot, before moving any machinery or equipment. Additionally, staff must keep their seat belts on whenever this equipment is in motion and activate the parking brakes before leaving it unattended. Any unaddressed work zone safety hazards should be promptly reported to a supervisor. Adopt a traffic control plan (TCP). The purpose of a TCP is to limit traffic disruptions caused by a work zone and keep the area as safe as possible for all parties involved. This plan should create clear walking paths for employees and pedestrians and outline steps to help equipment operators and motorists travel smoothly through a work zone. While exact details in a TCP will vary based on the complexity of the road construction project at hand and applicable traffic laws, it should list temporary controls for each of the four sections surrounding a work zone: The advance warning area —This section refers to the portion of the roadway just before construction begins. Proper signage warning motorists and pedestrians of the upcoming work zone and message boards explaining how traffic patterns will change are critical for this area. The transition area —This section pertains to the portion of the roadway where motorists are redirected from their normal paths to a designated route away from the work zone. It should include detailed arrow paneling and a lower speed limit, thus giving motorists plenty of time to merge or change lanes. This detour should reduce the risk of traffic congestion while still upholding highway safety. The activity area —This section entails the portion of the roadway where construction is taking place. Apart from a safe path for traffic to flow through, it should include a separate area for employees, equipment and machinery, and construction materials. This area should establish plenty of buffer space between moving vehicles and workers and set up a physical barrier as an extra layer of protection (e.g., traffic cones or barricades). The termination area —This section encompasses the portion of the roadway immediately after construction ends. Similar to the transition area, this section should include arrow paneling and other visual cues to safely redirect motorists and allow them to resume their usual traffic patterns. Invest in technology solutions.  Certain technology offerings can also help reduce work zone safety hazards. Namely, automated flagger devices, which are typically operated by human flaggers positioned at protected vantage points, utilize robotic gate arms and caution lights to redirect motorists away from road construction. Furthermore, drones and telematics software can enhance work zone visibility by collecting real-time pictures, video footage and data to identify safety issues before they escalate and cause major incidents. Educate employees.  It’s essential for staff to receive awareness training on common work zone hazards and how to minimize them. This training should provide an in-depth overview of all work zone protocols outlined in the safety program and the TCP and explain how to report any unaddressed hazards. Employees should get a refresher on this training every time they begin working on a new road construction project. Such training should be supplemented by daily on-site safety talks highlighting examples of near-miss and actual incidents in work zones. These incidents can showcase what could happen if something goes wrong on the job and reinforce the importance of maintaining a safe work environment. Conclusion   Work zones may present substantial safety hazards for construction employees, motorists and pedestrians alike. By better understanding these hazards and upholding effective mitigation strategies, employers can avoid possible incidents and ensure safe and successful road construction projects. Contact us today for additional industry-specific risk management guidance.

What is your wellness program actually trying to accomplish? The answer shapes everything from the benefits you offer to how you measure success. This video explains how to align your wellness strategy to improve culture, support wellbeing, or meaningfully reduce healthcare costs.

Hosted by SMSC Senior Safety Consultant Kara Vines, our most recent webinar, "Navigating FMCSA Compliance Reviews," provided clarity, confidence, and the tools needed to help navigate the FMCSA Compliance Review with success. Attendees were taken behind the scenes of the review process, from the initial notification to the final safety rating, and discovered the most common violations, how to organize required documentation, and practical strategies for strengthening Safety Management Controls. If you were unable to attend or want to revisit this session, view the webinar recording now! Key takeaways and insights... FMCSA reviews what you actually do , not just what you have on paper. Compliance reviews go far beyond documents—they focus on whether your Safety Management Controls are working in real‑world operations. Documentation must match practices. Acute vs. critical violations and their impacts on your safety rating. Missing medical certificates, drug & alcohol testing violations, unsafe driving behaviors, and poorly maintained equipment are high‑impact issues that can trigger interventions and significantly affect safety ratings. Being “audit‑ready” year‑round is essential. FMCSA reviews can occur at any time, often triggered by roadside inspection trends or crash indicators. Keeping DQ files, MVRs, maintenance records, and drug & alcohol documentation up‑to‑date prevents last‑minute scrambling. Organization and documentation accuracy drive better outcomes. Having complete, consistent, and easy‑to‑access records, plus clear policies and proof of corrective action, demonstrates strong safety management and can positively influence your rating during a review. Click here to the view the presentation.

In many industries, forklifts are essential for moving materials and goods. However, when forklifts powered by gasoline, propane and diesel fuel are used indoors or in confined spaces, dangerous levels of carbon monoxide can build up quickly.   Carbon monoxide is a colorless, odorless and tasteless gas produced by internal combustion engines. Because you cannot see or smell it, carbon monoxide can build up quickly without warning and cause serious health risks, including death.   If your work requires you to operate a forklift, it’s imperative to know the risks presented by carbon monoxide and the steps you need to take to keep yourself safe. Recognizing the Symptoms of Carbon Monoxide Poisoning Knowing the warning signs of carbon monoxide poisoning is critical. Symptoms often start mild and quickly become life-threatening. If you notice any of the following symptoms while working around forklifts, act immediately. Headache that worsens over time —This is often the first sign of carbon monoxide exposure and should never be overlooked. Dizziness or lightheadedness —Feeling faint or unsteady means your body may not be getting enough oxygen. Nausea or vomiting —These symptoms can seem like food poisoning but may indicate carbon monoxide exposure. Shortness of breath or chest pain —Difficulty breathing is a serious sign that your body is struggling. Confusion or difficulty concentrating —Trouble thinking clearly or feeling mentally foggy can be a warning that carbon monoxide levels may be high. Loss of consciousness in severe cases —If exposure continues, you can collapse suddenly and require emergency care.   Tips to Stay Safe By following these tips when operating a forklift, you can significantly reduce the risk of carbon monoxide buildup and protect yourself and your coworkers:   Inspect and maintain your forklift regularly . Report any engine problems or unusual exhaust smells immediately. A poorly tuned engine produces more carbon monoxide, increasing the risk for everyone nearby. Operate your forklift sensibly . Avoid racing the engine, breaking erratically and jerky operation of the hydraulic systems. All of these increase carbon monoxide emissions. Avoid operating for extended periods in specific locations . Do not operate a gasoline, propane or diesel engine forklift for long periods of time in a confined area, such as a truck trailer. Consider the impact of cold weather . During cold weather months, doors and windows that are typically open may be closed, allowing exhaust and other gases to concentrate. Turn off the forklift whenever you are not actively using it . Avoid idling for long periods, especially in confined spaces. Shutting down the engine when possible can reduce unnecessary emissions. Report any ventilation issues to your supervisor immediately . If fans or ventilation systems are not functioning, do not operate the forklift in that area until the situation has been assessed and resolved. Use carbon monoxide monitors when operating forklifts . Ensure carbon monoxide monitors or badges are turned on and positioned correctly. These devices alert you before carbon monoxide reaches dangerous levels. Always take alerts from these devices seriously, remove yourself from the area and inform your supervisor. What to Do in an Emergency If you suspect carbon monoxide exposure, take immediate action. Delaying even a few minutes can make the difference between recovery and serious injury or death. The following guidelines are recommended:   Stop work immediately and move to fresh air away from the source . Go outside or to a well-ventilated area as quickly as possible. Notify your supervisor and report the incident . This can help prevent others from being exposed and ensure the hazard is addressed. Call for medical help without delay . Carbon monoxide poisoning is a medical emergency that requires professional treatment. Do not reenter the area until it has been ventilated and declared safe by qualified personnel . Returning too soon can lead to further exposure. If you suspect a coworker is experiencing carbon monoxide poisoning, take immediate action . Help move them to fresh air if it is safe for you to do so. Call emergency services and stay with the coworker until help arrives . Monitor their breathing and be prepared to provide CPR if they stop breathing and you are trained to do so. Do not allow the affected person to return to the contaminated area . Keep them in a safe, ventilated space until medical professionals take over.   Conclusion Carbon monoxide hazards are silent but deadly. Always follow safe work practices and workplace rules when operating forklifts powered by gasoline, propane and diesel fuel. Your awareness and actions can save lives.

On March 6, 2026, the U.S. Department of the Treasury and the IRS issued proposed rules regarding the $1,000 pilot program for Trump Accounts. Created by the One Big Beautiful Bill Act (OBBBA) , Trump Accounts are a new type of tax-favored savings account for children under the age of 18 that will be available later in 2026. Under the pilot program, children born between 2025 and 2028 may be eligible to receive a special $1,000 contribution to their Trump Accounts from the federal government if certain requirements are met. The proposed rules address how the IRS willmake the one-time $1,000 pilot program contributions for eligible children. Overview of Trump Accounts Trump Accounts are a new type of traditional individual retirement account (IRA) established by authorized individuals for the benefit of eligible children. Contributions to Trump Accounts may start July 4, 2026, and can be made by anyone, including parents or guardians, grandparents, employers, philanthropic contributors or any other source. Contributions are subject to an annual limit of $5,000 (subject to cost-of-living adjustments after 2027), although certain types of contributions are not counted toward this limit, such as the federal government’s $1,000 pilot program contribution. The accounts are treated similarly to traditional IRAs for tax purposes, with special rules applying during a “growth period” that ends on Dec. 31 of the year before the calendar year in which the child reaches age 18. Employers can contribute to the Trump Account of an employee or an employee’s dependent pursuant to an Internal Revenue Code (Code) Section 128(c) Trump Account Contribution Program. These contributions are not includible in the employee’s income for federal tax purposes. Contributions are limited to $2,500 per employee per year, subject to cost-of-living adjustments after 2027. This program must be established pursuant to a written plan document and meet certain tax rules that apply to dependent care assistance programs regarding discrimination, eligibility, notifications, and benefits. Pilot Program for $1,000 Contributions For an eligible child to receive a $1,000 pilot program contribution, an election must be filed by an individual, typically a parent or guardian, who anticipates the child will be their qualifying child under Code Section 152(c) for the year during which the election is made. The parent (or other individual who qualifies to make the election) must also establish a Trump Account for the child. Taxpayers will use a new IRS form ( Form 4547 , Trump Account Election (s)) to establish Trump Accounts for eligible children. This same form is used to make an election to participate in the federal government’s $1,000 pilot program. Under the proposed rules, an authorized individual can make an election for a $1,000 pilot program contribution to be made to the Trump Account for a child who: Is anticipated to be the qualifying child of the authorized individual for the year in which the election is made; Is born after Dec. 31, 2024, and before Jan. 1, 2029; Has not had a prior pilot program contribution election processed for them; Is a U.S. citizen; and Has a Social Security number. For additional information on who is a qualifying child under Code Section 152(c), potential pilot program-electing individuals (including parents, foster parents and other relatives) can look to IRS Publication 501 , Dependents, Standard Deduction, and Filing Information.  The proposed rules would establish a broad election period for the pilot program, beginning on the day that a child becomes eligible and ending on Dec. 31 of the calendar year in which the eligible child reaches age 17. A pilot program election could be made any time during the proposed election period, including when the pilot program-electing individual files their federal income tax return. The pilot program election, however, is not a part of any individual’s tax return and must be done separately using Form 4547.  According to the IRS, the pilot program contribution will be made as soon as practicable after the election is made and the IRS can confirm that the initial Trump account has been opened. However, no pilot program contribution will be deposited in the Trump account of a child earlier than July 4, 2026.  More Information  For more information on Trump Accounts, visit trumpaccounts.gov . and see Form 4547 instructions.  This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counselfor legal advice.