Nuclear Verdicts — One Bad Decision and a Business Closes

Sentry’s 2026 C-Suite Stress Index Survey is an annual survey of executives. This year’s survey reveals a dangerous, and very worrisome concern. Just one multimillion dollar verdict and 69% — or seven of 10 — of executives say their business would have to close.

Brett Hoopingarner, Sentry’s national sales director, direct writer and life & annuities said the survey also found 93% of the businesses question, and their executives, say they have been impacted by a lawsuit in the last five years. Fortunately, just 17% of CEOs rank lawsuits among their top concerns in 2025.

"The best way to eliminate the risk of a multimillion-dollar lawsuit is to prevent the claim from ever happening," Hoopingarner said. "One of the best ways to prevent claims is through sound risk management. Executives should work with their agent, broker, and insurer to review their operations for policies and practices that reduce risk and make operations safer.”

Here’s more:

• 54% say their company will make it through — and even thrive — in 2026
• However, 60% say they’re much more stressed in 2026 than they were in 2025

Many say they face big challenges in 2026:

• 45% have logistic challenges
• 44% are facing serious economic pressures
• 39% worry about tariffs and uncertainty in trade

Also on the list is the shortage of labor, rising through-the-roof healthcare costs for employees and cyberattacks. Another huge issue is an aging workforce.

• 97% say their business is feeling the impact of having older workers
• Shifting retirement ages is also a worry
• 84% say they need, and are asking, employees to do more
• This includes work they’re not trained to do
• 51% are asking employees to work longer hours and take fewer breaks
• Many worry unskilled and under-skilled workers will generate more claims
• 66% say they already had a lot of claims against them, or they’re concerned more are coming

Weather is also a huge concern and 50% say the next major weather event or natural disaster could force their company to close permanently

"Increasingly, policyholders are making the connection between weather and business continuity," Hoopingarner said. "Our policyholders are starting to look at whether new suppliers—and even competitors—can fulfill orders if they go down due to a major weather event. We also are seeing executives extend business income and expense coverage to 12–24 months rather than only 6–12 months to help them survive should a catastrophe hit."

That leads to insurance. A critical 98% of executives plan to review their insurance policies this year and 83% do not think their current coverage is up to snuff.

Source link: PropertyCasualty360.com — https://bit.ly/4b3zkrJ

Source link: Business Insurance — https://bit.ly/4b1prdV