Nearly two‑thirds of commercial property stakeholders – defined as property owners, new construction builders, and business owners – report being very or extremely concerned about severe weather risk and natural disasters in their area. Nationally, respondents feel most at risk from severe heat waves (69%), floods (69%), and damaging winds (65%). Top concerns tied to these risks are business interruption (56%), water intrusion/flood damage (41%) and structural damage (33%). 

Risk perception also varies by region. Flooding and business interruptions rank among the top concerns nationwide, while specific risks are top of mind in areas prone to particularly damaging weather. In hurricane-risk states, concern about structural damage (39%) and broken windows (39%) exceeds national levels. In states prone to severe convective storms, stakeholders report heightened concern about roof damage (33%) and broken windows (33%), as well as ice storms and severe cold waves.

Even with widespread concern, less than half of national commercial property owners say they feel fully prepared for any of these weather risks.

Property owners are investing in physical resilience
In response to growing weather risk, property stakeholders are taking meaningful steps to reinforce their buildings and operations.

• 61% have added backup power systems
• 60% installed weather-resistant windows or doors
• 57% developed or updated an emergency preparedness plan
• 54% added extra bracing for severe wind

Structural upgrades play a critical role in reducing damage and limiting disruption. At the same time, businesses are evaluating how their insurance coverage supports recovery should substantial losses occur.

Confidence in coverage is strong, but businesses are weighing their protection
Property owners’ perceptions of insurance protection are nuanced. More than 8 in 10 say they feel well protected against severe weather losses; however, only 39% of those stakeholders say they feel fully protected – suggesting that while overall confidence in coverage is strong, fewer view their coverage as comprehensive.

Even with positive perceptions of coverage, cost considerations continue to shape insurance decisions.

• 41% believe commercial property insurance affordability has improved over the past year
• Still, 60% are interested in ways to manage insurance costs
• 55% would consider reducing coverage or insuring less property to lower premiums

Nearly all property owners report consulting with an insurance agent to review coverage and discuss risk management strategies. This ongoing professional guidance has become essential as weather-related risks continue to evolve.

Growing risks highlight opportunity for greater technology adoption
While many commercial property owners are concerned about weather and environmental damage, adoption of technologies designed to predict and prevent losses remains relatively low.

• Only 41% report using smart water leak detection or automatic shutoff systems
• Two-thirds do not use smart thermostats or temperature sensors
• Roughly three-quarters do not use environmental sensors that monitor conditions like temperature, humidity or air quality

The findings also point to a broader awareness gap: nearly 8 in 10 respondents (77%) wish there were as many technology solutions available to protect their business properties as there are for their homes. In reality, commercial-grade monitoring and protection tools are more widely available and advanced than residential offerings, and many insurers offer discounted access or incentives for businesses that adopt them.

Building a comprehensive approach
As severe weather risks continue to disrupt operations, insurance agents remain a critical resource for helping businesses navigate coverage decisions, identify mitigation opportunities and understand where technology can further strengthen their protection.

“Businesses have made meaningful investments to strengthen their properties, and that’s encouraging,” said Jason Ragsdale, Nationwide’s leader of Risk Management Technical Specialization. “But resilience goes beyond the building itself. It requires a comprehensive approach that includes risk mitigation, continuity planning and insurance coverage that reflects today’s evolving risks.”

Methodology
Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey of 300 commercial property stakeholders from January 24 to February 13, 2026.

Nationwide’s survey was fielded in April 2025 with 400 U.S. manufacturers and 200 independent insurance agents who support the sector. The research paints a clear picture of where opportunities and vulnerabilities are emerging – revealing manufacturers’ bullish outlook alongside agents’ perspective on the importance of strategic partnerships around risk mitigation and long-term planning.   

“Manufacturers are leaning into opportunity, and they’re looking for partners who can keep pace,” said Erika Melander, head of the national manufacturing practice for Nationwide. “This moment calls for tight alignment between business leaders and their insurance advisors to anticipate exposures, rethink risk mitigation strategies, and adapt to changing conditions.”

Trade policy and supply chain pressures
Trade policy is a potential double-edged sword for manufacturers. While 64% of manufacturing leaders expect tariffs to positively impact their business over the next year, they remain concerned about the effects on raw material costs, profit margins and supplier availability. Nearly half of agents agree with manufacturers’ concerns, saying tariffs are already weighing on clients by forcing price increases and weakening international competitiveness.

Manufacturers are responding with calculated steps to strengthen operations and reduce exposure:

• 64% are expanding their supplier base
• 52% are frontloading inventory
• 48% have reviewed or updated their business continuity plans

While global partners remain important for 75% of manufacturers, 35% report shifting to more U.S.-based suppliers due to trade uncertainty, with another 50% considering similar moves. Still, nearly half (45%) expect to rely on tariffed imports, fueling concern for 87% who worry that shifting trade policies could cause further supply chain delays and pricing disruptions. To manage financial strain:

• 32% of manufacturers plan to pass most rising costs on to customers
• 44% will absorb some costs and raise prices moderately
• 23% plan to absorb most rising costs without passing them on to customers

Agents echo this concern, with 7 in 10 calling supply chain disruption a serious and growing threat for manufacturers. Encouragingly, agents say about half of their clients have proactively reviewed insurance coverage to address potential disruption, and three-quarters of agents report growing client interest in endorsements such as contingent business interruption.

Technology brings opportunity – and risk
Technology is also seen as a critical driver of growth in the year ahead. Manufacturers are widely adopting digital tools to streamline operations, with:

• 91% implementing inventory management technology
• 83% integrating Internet of Things (IoT) solutions
• 83% adopting predictive maintenance technology
• 82% using robotics for automation of physical tasks

Meanwhile, many manufacturers are also leaning into AI technology to improve efficiency and stay competitive. Reported benefits from early AI adopters include improved forecasting, cost savings, product quality and supply chain agility.

Agents are in tune with this digital shift but flag potential risks, especially around AI. Key challenges they cited include risk of product defects (41%), integration challenges (40%), high costs (39%) and lack of internal expertise (34%).  

Talent remains a top concern
Manufacturers and agents align on another core challenge: talent.

• 64% of manufacturers report difficulty attracting and retaining skilled workers
• 28% say they can’t find candidates with critical skills
• 27% struggle to meet qualified workers’ compensation expectations
• 2 in 3 say younger workers do not view manufacturing as a desirable career path
• 7 in 10 agents say this workforce challenge is serious – and unlikely to improve soon

This ongoing labor strain has implications for workplace safety, continuity planning, and future operational capacity.

A strong role for insurance advisors
As manufacturers prepare for what’s next, agents are playing a valuable role in helping clients navigate risk. A focused, flexible strategy remains essential – and agents are increasingly seen as key partners in shaping it. Melander says manufacturers should prioritize three critical areas to strengthen their position in a complex and evolving economy:

• Technology: Continue scaling technology, from inventory management systems and automation to AI, to drive efficiency and resilience. As reliance on technology grows, 31% of manufacturers say strengthening their cybersecurity is one of their largest business opportunities over the next year, opening doors for agents to guide clients on cyber liability solutions.
• Talent: Redefine what a career in manufacturing looks like, emphasizing innovation, job security and purpose to appeal to the next generation.
• Risk Management: Partner with specialized insurance and risk advisors to reassess exposures, tailor coverage and develop mitigation strategies that support long-term needs. The good news: 84% of agents say they are familiar with how clients are responding to changing dynamics and 76% feel confident advising on insurance and risk mitigation related to global trade uncertainty. With 82% of manufacturers actively seeking this type of guidance, the agent’s role has never been more critical.

“Manufacturers who treat risk management as a strategic priority – not just a safety net – will be better equipped to weather volatility and sustain growth,” said Melander. “By aligning their talent strategy, embracing technology and working with experienced insurance partners to anticipate and mitigate risk, they’re building a more resilient and competitive future.”

Learn more about manufacturing insurance and risk management resources, and view the full findings from Nationwide’s survey here.

Methodology:
Nationwide commissioned Edelman Data and Intelligence to conduct a national online survey of 400 U.S. manufacturing business decision makers and 200 independent insurance agents who work with manufacturing clients from April 4 to April 21, 2025.

Nationwide's survey of commercial property stakeholders, including commercial property owners, new construction builders and business owners, revealed a significant increase in concern about severe weather since 2023. This heightened level of concern is particularly notable among residents in states susceptible to wildfires or hurricanes.

“Our research shows one-third of property owners have faced natural disaster damage in the past five years, and that number jumps significantly to over half in wildfire-prone states and nearly two-thirds in hurricane-prone states,” said Mark McGhiey, Risk Management and Client Services leader at Nationwide. “This data highlights the urgent need for property stakeholders to not only be aware of these risks, but to take proactive steps in mitigating them.”

Property Stakeholders are on high alarm
More than two thirds (67%) of commercial property stakeholders are highly concerned about damages from severe weather and natural disasters, a 5-point increase from 2023, but this rises to 93% (+28 points) and 86% (+16 points) in wildfire- and hurricane-prone states, respectively.

Of the perceived weather risks they face, national property stakeholders are most concerned about damaging winds (88%), flooding (78%), lightning (78%) and tropical storms or hurricanes (75%) – with levels of concern across each having increased more than 10 percentage points since 2023.

Respondents are also more concerned about the impacts of business interruption (41%, +13 points) and structural damage (50%, +8 points) to their company properties compared to 2023.

Businesses are taking on financial risks
Despite their weather concerns, 26% of commercial property stakeholders admit knowingly carrying inadequate insurance coverage to account for severe weather events, an 8-point increase. Most insurance agents also say at least 4 in 10 commercial customers they serve are underinsured for severe weather impacts.

At the same time, property owners are looking for relief on insurance costs. Three-quarters (76%) are actively seeking opportunities to cut costs on their insurance policies and 42% say they’re willing to reduce insurance coverage to shrink premiums.

Stakeholders are also doing less to proactively mitigate risks, suggesting economic uncertainty and increased construction costs are barriers to taking action.

• Only 31% report willingness to invest in measures that improve their properties’ resilience to weather events, a 22-point drop from 2023.
• Those who are willing to improve their properties are open to paying up to $10,000 to do so, down 50% from 2023*.

Protection requires more than a policy
While 95% of national property stakeholders say they have a response plan in place in the event of severe weather damage, 1 in 5 agents (19%) estimate that less than half of their clients have a risk management plan in place to prevent weather disruptions.

The research also suggests agents and carriers can do more to help fill these gaps with customers. Only 34% of agents prioritize sharing carrier-provided risk management resources for their clients related to weather preparation. Another 33% only do so when asked by their customers.

"Protection against severe weather requires more than just insurance policies; it demands a robust business continuity plan. Without a comprehensive approach that includes both, business owners will be stuck in an endless cycle of financial strain and disruption as weather becomes more dangerous and unpredictable across the US, not just on the coasts,” said McGhiey. “It's imperative that property owners, agents and carriers work together to bridge these protection gaps and ensure resilience against future climate risks."

Learn more about weather risks and risk management resources, and view the full findings from Nationwide’s Agency Forward survey here.

Methodology:
Nationwide commissioned Edelman Data and Intelligence to conduct a national online survey of 500 commercial property stakeholders and 400 independent insurance agents from January 24 to February 13, 2025.

*Sample size <100, directional findings only.

72% of small business owners and half of mid-market owners rate the current economy as ‘poor’ or ‘fair’, with 6 in 10 citing inflation as a top concern, followed closely by fears around the upcoming presidential election (49%), high interest rates (49%), and supply chain issues (40%).

Yet, zoom in and the sentiment shifts significantly. When focusing on their own businesses, 51% of small business owners and 73% of mid-market owners rate economic conditions as ‘good’ or ‘excellent’. Moreover, 1 in 5 expect to expand or introduce new services this year.

Workforce challenges
In addition to macroeconomic concerns, business owners are also facing internal pressures from employees who are experiencing economic strain. In the past six months, business owners have experienced employees:

• Asking for better compensation (37% - all owners; 34% - small; 39% - mid-market)
• Asking for more or better benefits (32% - all owners; 25% - small; 40% - mid-market)
• Leaving for better paying jobs (28% - all owners; - 22% small; 35% - mid-market)
• Leaving for remote work opportunities (24% - all owners; 15% - small; 33% - mid-market)

“Business owners have a lot to navigate right now, from macroeconomic anxieties to workforce demands. What’s clear is owners aren’t taking it on the chin; rather, they’re rolling up their sleeves to improve the operational strengths of their firms,” said Russ Johnston, president of P&C Commercial Lines and Excess & Surplus, Specialty at Nationwide. “Insurance agents and brokers play a critical role as businesses adapt to these challenges, serving as a consultative partner in assessing protection needs and risk mitigation strategies to benefit their operations now and in the future.”

Optimizing operations and expenses
The research found business owners adopting a proactive, hands-on approach to meet the evolving needs of their workforce and protect their companies from external risks. 59% of small and 80% of mid-market owners are planning to or have already increased wages and many are targeting improvements to their employee benefit offerings.

Half of small business owners and two-thirds of mid-market owners are also proactively planning for potential crises that could impact their operations – leading to 9 in 10 saying they’re prepared to navigate a major business disruption.

Still, owners are budget conscious and focused on optimizing processes and reducing costs – and for some, that includes examining insurance as an area for savings. About 8 in 10 business owners (83% of small business owners, 77% of mid-market owners) have reviewed their commercial insurance policies online or with their agent in the past six months. More than one-third of mid-market owners have gotten rid of a policy or decreased coverage limits in that timeframe.

“In the face of short-term economic pressures, insurance professionals can help their commercial clients avoid sacrificing essential long-term protections,” said Johnston. “It’s a great time to check in and review policies, help them understand their options, and assist in implementing protective measures that can prevent costly disruptions down the line.”

The latest Nationwide Agency Forward survey on U.S. homeowners reveals many homeowners are not taking preventative steps with necessary maintenance in the home before it becomes a major issue. Additionally, a quarter of homeowners (26%) are unaware that delaying necessary home maintenance can have implications for their homeowner’s policy. 

Delaying inevitable home maintenance is not cost savings
Within the past year, 44% of homeowners said they have delayed performing routine maintenance tasks and 31% are delaying necessary renovations and repairs—with 78% of these individuals saying they have deferred necessary maintenance because of inflation and rising prices.  

Among these individuals, the most common types of home maintenance or renovations that are being delayed are roof repair/replacement [VIDEO] and kitchen/bathroom remodeling. Baby boomers (38%) are less likely than Gen X (50%) and Millennial (52%) homeowners to have delayed home maintenance needs.  

“As a homeowner, it’s important to protect your property from further damage when there is a known issue,” said Beth Riczko, World-Class Underwriting Project Executive at Nationwide. “When a claim is filed, there are many factors reviewed during the investigation that may impact whether the claim is covered, including if the insured followed policy conditions. For example, when shingles are damaged on a roof and aren’t repaired causing interior damage, there could be coverage impacts.” 

Ensure you have the right insurance coverage 
71% of agents reported that customers are reducing their homeowner’s coverage [VIDEO] to save money. The most common homeowners claim seen by agents stem from weather-related damage and fire damage—with most agents reporting an increase in these types of claims over the past year. No one plans to file a home insurance claim, yet the survey found that 43% of homeowners have filed a claim. More than half (56%) were related to weather, 37% for water damage, and 13% for fire damage.  

More than 8 in 10 homeowners believe their home is insured to the right value (87%), but many are still concerned that their policy might not cover certain types of damages or incidents (54%) or that they may not have enough coverage in case of a major loss or catastrophe (47%).  

“Homeowners should assess coverage needs and determine if they have enough coverage to reflect rising repair costs due to inflation,” said Riczko. “Taking proactive steps not only protects their investment but also provides peace of mind knowing they are better prepared for any challenges that may arise. It’s good practice to do an annual coverage review with your agent, to go over any updates or changes to your home or belongings and craft a policy that provides adequate protection.”  

When in doubt, ask an agent 
Insurance can provide policyholders peace of mind regardless of whether severe weather is in the forecast. Most homeowners are aware of some of the basic coverage available through homeowners policies including fire (89%), liability (83%) and personal property replacement protection (79%), but struggle to understand the full range of options available to them. 

In addition to covering the home, a standard home policy will offer various levels of liability and personal property protection. With all the choices available, it is important policyholders talk with their agent to ensure they have adequate coverage in the event of a loss.  

Insurance 101, what does homeowners insurance cover 

• Liability limits can range from $100,000 to $1,000,000, adding an umbrella policy may help give additional liability coverage of $1,000,000 to $5,000,000 
• A person who injures themselves on a homeowner’s property might claim that the homeowner is legally liable. In the event the injured person makes a claim or files a lawsuit, liability coverage under the homeowner’s policy may provide protection.   
• Personal Property, replacement cost vs actual cash value 
• Most policies will cover the current value of personal possessions. As home items keep getting more expensive, current value will not be enough to cover the cost to replace items with new ones.  Additional personal property insurance [VIDEO] may help provide funds to repair or replace home belongings after a loss. 

“Homeowners should speak with an agent to ensure they have an informed understanding of their home protection and additional ways they can supplement coverage,” added Riczko. “Also inform your agent about any home renovations [VIDEO] you do; this will help make sure these new additions have the proper coverage. There are cases where certain updates may even help reduce your premium.”  

Learn more about what homeowners insurance covers, and ensure you have the right property insurance coverage for your home. 

• Most middle-market business owners expect a recession soon and many are convinced their businesses can endure the turmoil according to the latest Nationwide Agency Forward survey. 
• Despite this confidence owners still want to cut costs, with 40% of business owners having explored areas to cut expenses within the last 6 months.  
• Some are eyeing workforce changes, such as decreased hours and paused hiring, to ease the financial strain. 
• For an astounding percentage of business owners (82%), expense cuts could come at the cost of their current insurance coverage. 

The economy is not rebounding the way business owners had hoped as we come out of the COVID pandemic. While inflation and rising costs continue to put a financial strain on operations, they anticipate more financial woes on the horizon – but not necessarily for their business. A recent Agency Forward survey from Nationwide reveals that 66% of middle market business owners expect a recession in the next six months. 

Although they are concerned, business owners are content with current performance. 
While a majority expect the U.S. to be in a recession within the next six months, nearly the same amount believe their business is prepared to manage it (65%). Over half of middle-market business owners say current business conditions are strong in the U.S. (58%) and in their own region or city (64%) compared to only 27% and 36% of small business owners, respectively. And about 3 in 4 (74%) would rate the conditions of their business specifically as being good or excellent.  

The survey also revealed middle-market business revenue performance and projections:  

• Less than 1 in 5 (19%) say their business revenue has decreased over the past 6 months. 
• 60% report their business revenue increased over the past six months, and 62% expect it to increase within the next 6 months. 

Despite their optimism, middle-market business owners want to save in the event their predictions might not be right. 
Recently, 40% of middle-market business owners have looked for ways to cut expenses, which include a pause in hiring (33%), using personal savings to support the business (28%), or cancelling/postponing a major business investment (28%). Of those who have not yet taken any action, plans vary on what they might do to support their business over the next 6 months. While 40% plan to hire new workers, many are considering asking more out of current workers to manage expenses (29%), furloughing workers or reducing hours (25%) or even laying off workers (25%). 

“As business owners review their balance sheet, they should think about what line items could have a long-term impact before making a change or cut,” said Linda Stueber, Senior Vice President, Middle Market Commercial at Nationwide. “The wrong move could jeopardize much more than their bottom line.”  

Majority are open to cutting insurance coverage, but at what cost?  
Of those who currently work with an insurance agent to manage their business’s insurance needs (70%), only 30% have contacted their agent in the past 6 months to discuss their coverage, and a similar proportion have increased coverage/limits on their existing insurance policies (32%). However, while many have added to their policies, this behavior may change in the near future. Over 3 in 4 (82%) mid-market business owners say they would be at least somewhat likely to decrease their business's current insurance coverage or limits as a way of reducing operating expenses if the country entered a recession in the coming months.  

While cutting back on insurance coverages may seem like an easy way to reduce expenses, it could have lasting financial impacts. For example, reducing property coverage limits at a time where property values are increasing due to inflation could leave a business with insufficient funds to rebuild after a covered loss. 

“What’s worrisome is the number of business owners who have not reached out to their agent to discuss their coverage, yet they are somewhat likely to decrease their limits” said Stueber.  “This is a really important step in changing any commercial policy. An agent can review all potential impacts around a change so a business owner can make an informed decision about updating their policy.” 

Survey Methodology:  Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute national online survey of 401 small business owners, defined as sole or part owners of companies with 1-50 employees and less than $10 million in annual revenue, and 302 middle-market business owners, defined as sole or part owners of companies with 51-500 employees or $10 million - $500 million in annual revenue. The small business owner survey was fielded from September 6 – 19, 2022 and the middle-market business owner survey was fielded from September 29- October 11, 2022. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data & Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines. 

The survey highlighted three key themes for agents to prioritize as they engage with clients for 2022 planning:

1. Business owners prioritize speed, ease and industry knowledge from their agents and carriers.
2. Advanced digital tools are simplifying claims.
3. Proactive planning can prevent disruptions.

“While supply chain and workforce challenges will continue for the foreseeable future, agents can help clients now by protecting any new or evolving operations they may have in place, assisting with business planning for future disruptions, and leveraging carrier-supplied risk management resources to help prevent further costly interruptions,” said Peter McMurtrie, president of P&C Commercial Lines at Nationwide. 

Business owners prioritize speed, ease and industry knowledge from their agents and carriers
Though 85% of the anonymous business owners surveyed who filed a claim in the past 12 months report being satisfied with their experience, some owners still struggle with navigating the claims process with their carriers. A quarter were dissatisfied with their claims experience saying it was difficult (25%) or slow (24%), while another 1-in-5 say it was challenging to track the progress of their claim (22%) or that their insurance agent wasn’t helpful (21%).

When it comes to filing a claim, both small and large businesses prioritize speed, ease, and industry expertise. Their top priorities include:

1. Having the claim handled quickly (68% small owners, 37% middle market owners)
2. Industry knowledgeable agent or claims representatives (46% small owners, 37% middle market owners)
3. Access to agent or claims representative by phone (small owners 48%, middle market owners 32%)

Insurers like Nationwide have reduced average claim cycle times for business owners with easy filing online or by phone and dedicated claims experts with deep knowledge in clients’ industries and the challenges they face. Still, carriers have opportunities to provide further educational materials for agents and customers as 42% of agents would like more resources to help their clients better understand the claims process.

Advanced digital tools are simplifying claims
While many business owners still want an agent on hand to help them through the claims process – about half cite their agent’s help as a top reason for their claim’s satisfaction – increasing speed and effectiveness is key to providing them a positive experience. Agents (~85%) reported being twice as likely as their business owner customers (37%) to believe the claims process is fast and easy.

Carriers are using new tools to simplify the claims process for business owners and their agents. Nationwide customers have access to report claims 24/7 online, receive payments digitally or by mail, and utilize solutions like the Nurse Triage Hotline to get qualified medical professional advice after an accident and help determine an effective course of action.

“The survey showed agents feel confident talking clients through filing and tracking claims and have opportunities to build deeper client relationships when they’re prepared to deliver that counsel to business owners in the moment,” said McMurtrie. “Agents who take the time to fully understand clients’ needs and preferences, as well as the carrier-offered claims solutions to address them, will benefit from heightened confidence and smoother experiences for their customers.”

Proactive planning can prevent disruptions
Across the board, business owners are most concerned about the impact employee injuries, cyberattacks, pandemics and natural disasters could have on their companies. Depending on the business size, however, owners’ risk management opinions and actions greatly differ – creating an opportunity for agents to engage with their clients to ensure proper planning.

While nearly 80% of small business owners say risk management is a high priority for their company, more than a quarter (27%) say they have no risk management practices in place at all. Conversely, almost all middle-market business owners (96%) say they prioritize risk management at their business and have practices in place to mitigate risks.

Risk management services business owners are most commonly utilizing include:

1. In-person/on-site services – 33% small business owners, 51% middle market business owners
2. Safety programs/development and training guidelines – 25% small business owners, 54% middle market business owners
3. Online resources, including safety videos and documents – 29% small business owners, 51% middle market business owners
4. Digital risk management tools – 26% small business owners, 42% middle market business owners
5. Virtual/teleconference services – 20% small business owners, 40% middle market business owners

Agents can help business owners mitigate risk
With a lot at stake, it’s important for agents to talk to commercial customers, particularly small business owners, about the claims process and how risk management strategies can serve as crucial safeguards for their business, employees’ safety, and bottom line.

Three points to emphasize with commercial clients leading into 2022 include:

1. Timely claims reporting is critical to getting your company back to work quickly. On average, commercial lines claims are reported 20 days after the event of loss, adding as much as 15% to the life cycle of their claim.

2. Many business disruptions are preventable. Taking time to ensure proper housekeeping, maintenance and business continuity planning is in place can reduce costly disturbances and decrease recovery time if one happens.

3. With the average cost of a fleet accident at approximately $70,000 and auto accidents being the leading cause of work-related fatalities in the U.S.¹, for many organizations, their fleet operations pose their greatest liability and workers’ compensation risk. It is important that organizations establish a formal fleet safety program to protect employees and reduce accident risk.

 “As 2021 comes to a close and business owners report a high level of satisfaction with their agents, independent agents have opportunities during their annual check-ins to open dialogue with clients around risk management and in-person or virtual support available to them, serving as a valuable partner to prepare them for the future,” added McMurtrie.  

Methodology:
Nationwide’s ongoing Agency Forward research series works to track industry trends by surveying independent insurance agents, various business owners, and consumers. Nationwide commissioned Edelman Data & Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,400 U.S. independent insurance agents, small business owners, middle-market business owners, African American business owners and Hispanic business owners between June 22 – July 7, 2021, to gauge business owners’ experiences when filing a claim, understand their priorities when it comes to the insurance claims process, explore their perceptions of risk management for their organization and the steps they’re taking, and understand the challenges facing agents and business owners in today’s environment. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

¹ Bureau of Labor Statistics [2018]. Census of Fatal Occupational Injuries, 2017

However, nonprofit organizations themselves are highly vulnerable to economic uncertainty. New Agent Authority research from Nationwide found 81% of nonprofit decision makers are concerned about their organization’s ability to make it through the economic downturn brought on by COVID-19.

With nearly 6-in-10 nonprofits negatively impacted by COVID-19, challenges are steep. One-in-three nonprofit decision makers believe mental health problems and opioid use among the patients they serve are increasing. Additionally, 83% report the pandemic has exacerbated challenges associated with treating patients with opioid addiction. Further, 80% of nonprofit organizations are struggling to find enough employees or volunteers to administer their services.

Despite the mounting challenges facing the sector, nonprofit decision makers are optimistic for the economy and their business’ improvement over the next six and 12 months.

“To overcome the burdens they face, many nonprofits have adapted their operations or brought on new strategies to keep their business going,” said Cheryl Tamasitis, Regional Vice President of Nationwide’s Specialty Care practice. “Many organizations are investing in technology and it’s important for agents to understand how those investments may change clients’ operations and the risks they face.”

Through the pandemic, 1-in-5 nonprofits didn’t have proper technology in place to maintain operations or accommodate social distancing among employees, patients, or community members. Today, these organizations overwhelmingly say they’ve invested in technology in the past year to keep their organization going (92%), to meet the changing needs of their clients (91%), and to monitor employee or volunteer efficiency (91%).

These investments, and the pandemic’s lingering impacts, have caused nonprofits to rely more on technology now than ever before.

Interestingly, a top concern for nonprofit operators is the safety of workers driving company vehicles, yet less than half are taking advantage of vehicle telematics to monitor and improve safe driving behaviors.

“Telematics programs, like Nationwide’s Vantage 360 Premium Partner Program, offer easy ways for nonprofit organizations to improve their fleet safety while also leveraging operational benefits that can help them save on their bottom line,” said Tamasitis.

The survey also revealed multiple areas of opportunity for nonprofit-serving insurance agents to counsel clients on the pressing issues they’re facing:

          1. Many nonprofit owners struggle with understanding their insurance coverage and seek agents with deep knowledge in their industry

More than 80% of nonprofit owners say they have difficulties with following insurance terminology or understanding the best coverage or level of protection needed for their organization. To help with these worries, nearly 90% say it’s important that they work with an agent with specialized knowledge and training in their industry who’s able to meet their complex needs.

Agent takeaway: Nonprofit-focused agents should look for ways to demonstrate their unique understanding of their clients’ particular needs and their ability to offer the combination of insurance solutions and loss control services needed to adequately protect them.

          2. As reliance on technology continues to grow, agents can advise clients about safe and efficient use

One-third of nonprofit owners are seeking an insurance agent’s guidance on implementing new technology in their operations. The survey also revealed 65% of nonprofit business owners have been victim to a cyberattack, and more than half say the attacks had a financial impact on their business or jeopardized confidential patient information. Although 80% reported having cyber insurance coverage, 33% of those without cyber insurance say they didn’t know it was available.

Agent takeaway: With cyberthreats increasing, especially as work takes place from workers’ homes, agents will play a key role in helping clients understand their current and future cyber risks as clients rely more on technology.

“Nationwide offers a dedicated team of nonprofit industry experts, across underwriting, loss control and claims, who can help agents provide the comprehensive protection their clients need in tandem with risk management approaches to improve safety across the organization,” said Tamasitis. “A lack of protection can be incredibly costly for these budget-strapped businesses, so it’s critical to work with a carrier with deep expertise and a breadth of solutions to be able to cover the wide-ranging exposures nonprofit clients can face.”

Despite these setbacks, business owners shared optimism for a near-term recovery as vaccines began rolling out and a sense of normalcy came into sight. Nearly 60% of business owners said they expect the economy to improve and 73% said their revenue will improve in the next six months.

“From senior living and assisted living facilities to emergency shelters and addiction treatment centers, health care organizations face unique and vast insurance, operational and regulatory challenges,” said Cheryl Tamasitis, regional vice president of Specialty Care at Nationwide. “The pandemic has emphasized the need for specialized agents who can proactively guide clients through the exposures they face today and help them prepare for the challenges of tomorrow.”

Employee health, business planning among top concerns for health care business owners
Business and employee concerns are top-of-mind for many health care business owners as a result of the health and economic impacts of COVID-19. A quarter of business owners also reported an increase in mental health issues or opioid usage amongst both patients or community members, and employees or volunteers.

The pandemic has also driven home the need for increased planning, as a quarter or more of business owners lacked contingency plans to maintain operations through shutdowns (25%), proper technology to accommodate social distancing needs (26%), or financial plans to account for a recession (28%).

To address these concerns, 81% of health care business owners say they’ve changed their operations to be more efficient and about 9-in-10 have adopted new strategies to maintain operations. These changes include an increased reliance on technology, as business owners are relying more on wearables (80%), Internet of Things devices (79%), telemedicine or teletherapy (78%) and vehicle telematics (77%) since the pandemic began.

“As health care organizations lean more on technology, agents should be talking to them about add-on coverages like cyber insurance to protect against cyber threats that could compromise their business and confidential patient information,” said Tamasitis.

Insurance protections top of mind
Health care business owners are paying closer attention to insurance due to COVID-19. Over the past year, 78% considered changing their insurance company and 3-in-4 amended at least one of their policies. Four-in-10 also spoke with their agent about risk management and loss control solutions.

“Business owners are looking to their agents and carriers for specialized loss control and risk management support,” said Tamasitis. “Nationwide’s Loss Control Services team works with agents to help tailor our tools and resources to meet client needs, such as implementing our Vantage 360 Telematics program to help business owners improve the safety and efficiency of their fleet operations.”

Nearly 90% of business owners also indicated there’s an opportunity for insurance agents with vast knowledge, education and training in their industry who can meet their customized needs. While 87% would prefer to work with an agent with deep knowledge in their industry, 78% believe it’s difficult to find one. Still, 8-in-10 say insurance agents provide them with the best price, offer assurance they have the right coverage, and regularly check in to make sure their needs are met.

Nationwide helps agents meet health care customer needs
Nationwide helps agents deliver extraordinary care to their health care clients through advanced industry expertise across underwriting, loss control services and claims. Specialized programs for agents, such as Nationwide’s Human Services Agent Certification Program, offer unmatched training sessions to address important risks, solutions and trends in the human services industry.

Nationwide’s Loss Control Services dedicated team offers subject matter experts with industry backgrounds, including registered nurses and nursing home leadership, to assist clients in-person or virtually with a wide variety of risk management issues including clinical, transport and life safety. Nationwide’s experts have been in clients’ shoes, understand the realities facing today’s health care business owners and can speak their language.

“Nationwide is also focused on helping agents elevate their expertise and sales effectiveness with resources like the Commercial Insight Center and Agent Blog, which host articles and resources for agents with the latest trends in health care and sales tactics and insights to help them grow their business,” said Tamasitis.

Nationwide’s research uncovered three key themes for construction business owners and the commercial agents who serve them:

1. COVID-19 delivered unexpected blows to construction owners and exacerbated existing issues;
2. Pragmatic business owners expect continued challenges, but are overall optimistic about the upcoming peak season; and
3. Agents can increase their value to business owners now and position themselves for long-term growth.

“COVID-19’s impacts have brought new and existing challenges to the forefront for many construction business owners,” said Linda Stueber, Nationwide’s Senior Vice President of Middle Market Commercial Lines. “As the industry recovers, agents can grow their influence by not only counseling clients on their protection needs for changing operations, but also by sharing expertise to help them run their businesses more effectively.”

COVID-19 heavily impacted construction business owners
Like many other industries, the construction industry battled direct and collateral effects from COVID-19:

• 70% of construction owners were negatively impacted by the pandemic, experiencing the biggest hits to total revenue (52%), their company’s ability to bid on new projects (45%), and their workforce/employee headcount (37%).
• The pandemic also emphasized the need for increased planning, as more than 1-in-5 business owners lacked plans to help their businesses operate through economic uncertainty:
  • 27% didn’t have proper plans in place to successfully navigate project site shutdowns/re-openings.
  • 24% didn’t have a business plan to account for a potential recession.
  • 23% didn’t have enough employees or subcontractors to meet project demand.

Business owners share optimism, despite lingering challenges in 2021
Most construction business owners said they accelerated new strategies or re-evaluated areas of their business to account for the pandemic’s impacts – nearly 90% changed their operations for business continuity or increased efficiency. In many cases, the tightening labor market has also forced them to relax screening criteria for new hires. In fact, 70% of business owners said they have, will or may relax new hire screening criteria and drug testing practices to account for a lack of qualified candidates.

Near-term uncertainty is strong among owners as 79% are worried about meeting their 2021 revenue goals and 76% fear lower customer demand due to an economic recession. Despite their concerns, however, 84% of owners are optimistic about the strength of the 2021 upcoming peak season and their business’s preparation to meet increased demand.

• 85% of construction business owners have changed at least one of their insurance policies, but three-quarters are still worried about having the right policies in place to protect their business.
• While concerns remain, owners believe the economy and their company’s performance will increasingly improve over the next year:
  • In the next 6 months, 48% believe the economy will improve and 67% believe their revenue will improve.
  • In the next 12 months, 60% believe the economy will improve and 75% believe their revenue will improve.

Proactive agent outreach can lead to strong, long-term relationships
With the anticipated uptick in business over the next year, construction-focused independent agents have a prime opportunity to proactively reaffirm their ability and counsel business owners through operational changes and new exposures. Even more, assisting owners to implement new plans that protect against future threats, such as increased cyber or COVID-related liability exposures, is essential as the industry begins to rebound.

The survey results also uncovered that construction owners have a high level of trust for their agents, as many reported leaning on their agents to guide them through the challenging market conditions:

• 89% of construction owners trust their insurance agent’s guidance and feel they can build a relationship over time.
• 87% said their agent regularly checks in to make sure their policy is adequate for their needs.
• Half of business owners engaged their agents over the last 12 months to:
  • Discuss or review their coverage (54%)
  • Create a business plan to address COVID-19’s economic impacts (51%)
  • Improve their business’s safety and loss control efforts (50%)

“Construction owners are looking to build long-term relationships with the agents who serve their businesses,” said Stueber. “By opening a dialogue now to hear their client’s business needs and share expertise and counsel in the short-term, agents can build stronger long-term relationships to be prepared to implement that counsel when construction owners are confident their business will improve.”

Business owners shared strong interest in receiving more resources and guidance from their agents, including:

• Regular policy reviews (46%)
• Information on the latest trends in their industry (43%)
• Updates on cyberthreats and cybersecurity measures (36%)

Agent takeaways:

1. Agents serve a vital role in helping construction clients understand the impacts evolving operations may have on their coverage or risk management needs. Nationwide’s Commercial Insight Center helps agents stay up-to-date on complex industry trends and offers resources to educate clients on topics like the importance of finding good subcontractors or benefits of creating an effective risk transfer program.
2. Highlight the importance of business planning with construction clients to prepare for the unexpected. Work with carriers who specialize in construction risks and have dedicated loss control teams to serve the construction industry on-site and virtually. www.mylosscontrolservices.com offers virtual services, guidance for developing business continuity plans, and share-able resources to control exposures, such as strategies for protecting idle construction projects, preventing falls from heights, or dealing with effects of extreme weather patterns.

*These insights and more were uncovered through Nationwide’s ongoing Agent Authority research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agent Authority research reports: Agent-customer relationship; Small business owner needs and challenges; Agents' top concerns through the pandemic; Consumer and business owner cyber preparedness; Business’ growing interest in telematics; Consumers’ adoption of telematics.

Survey Methodology:
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 200 U.S. middle market construction business owners between January 5 – January 14 to explore the actions business owners have taken as a result of COVID-19, understand their outlook on the 2021 peak season and the challenges they’re facing, and gauge their experience working with insurance agents and buying or renewing insurance policies. For the purposes of this survey, middle market construction business owner was defined as anyone who self-reported as being a sole or part owner of a construction company with either 25-500 employees or $10M-$500M in revenue or 20+ fleet vehicles. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.