Credit: Yuliia/Adobe Stock
Nearly seven in 10 executives (69%) say one multimillion-dollar verdict would put their company out of business, according to a new study from Sentry.
But while 93% of organizations have been impacted by a lawsuit in the past five years, only one in five (17%) leaders included lawsuits among their top risks for the year ahead.
"The best way to eliminate the risk of a multimillion-dollar lawsuit is to prevent the claim from ever happening," said Brett Hoopingarner, national sales director, direct writer and life & annuities, at Sentry, in a statement. "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."
Overall, more than half of executives (54%) said their company will make it through, and even potentially thrive, in 2026, but 60% said they're feeling more stressed than last year.
Top concerns include logistics challenges (45%), economic pressures (44%) and tariffs and trade uncertainty (39%). Labor shortages, rising employee healthcare costs and cyberattacks also topped the list.
An aging workforce is taking a toll: nearly all of the leaders (97%) said they're feeling the impacts of an older population and a shifting retirement age. Most executives (84%) said they're asking employees to do more, including tasks above their level or for which they haven't been trained. More than half (51%) are asking employees to work longer hours or take fewer breaks.
Executives worry that unskilled or under-skilled workers will lead to more claims. Two-thirds (66%) said they've already had more claims or are concerned they will soon.
Weather is also increasingly a factor. Half of executives said they believe the next major weather event or natural catastrophe could force their company to close entirely. Yet, similar to lawsuits, less than a third named natural catastrophes as a top threat for 2026.
"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."
Nearly all the executives (98%) said they plan to review their company's insurance policies this year, and 83% said they're not confident their current coverage is adequate.
Photo credit: Yuliia/Adobe Stock
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