End-of-Year Risk Strategy & Planning for the New Year

As the year comes to a close, business leaders are often focused on budgets, performance metrics, and new initiatives. Yet this season is also one of the most important checkpoints for risk management and insurance planning. A comprehensive year-end review enables your organization to assess what has changed, evaluate the performance of your coverage, and identify potential vulnerabilities before entering a new year.

Strong risk planning is not only about protection, but also about control. Understanding your exposures, coverage gaps, and operational risks allows you to make decisions that protect your business, control costs, and strengthen future renewal outcomes. The time invested now can pay off throughout the next policy year.

Why Year-End Risk Strategy Matters

More than an administrative exercise, year-end planning is an opportunity to assess how your business has evolved and ensure that your insurance program remains aligned with your goals. When done thoughtfully, it delivers measurable value across financial performance, operational efficiency, and strategic readiness.

Planning brings control and cost savings.

A well-structured risk review helps prevent surprises that can lead to financial strain. Hidden costs, such as uninsured losses or inefficiencies, can often be avoided through early identification and correction. Reviewing claims activity, premium changes, and loss trends helps business leaders make more informed budgeting and renewal decisions.

Aligning risk management with business goals.

If your organization is expanding into new markets, investing in technology, or hiring new talent, new exposures are inevitable. A proactive strategy ensures that your insurance protection evolves in tandem with your operations, rather than lagging behind them.

Anticipating insurer expectations.

Underwriters value clients who take a proactive stance on risk. Documenting your controls, training, and mitigation plans demonstrates that your company is managing its exposures responsibly, which can lead to better terms, lower premiums, and smoother renewal discussions.

Supporting business continuity and long-term resilience.

By addressing potential disruptions before they occur, you help safeguard productivity, protect your reputation, and create a foundation for sustainable growth in the future.

Business Risk Trends to Watch in 2026

The risk environment is constantly shifting, and businesses that plan ahead are better positioned to protect assets and maintain profitability. Here are several areas that deserve close attention heading into the new year.

Cyber Extortion and AI-Powered Threats

Artificial Intelligence (AI) has transformed how companies operate, but it has also made cyberattacks more sophisticated. Phishing schemes, ransomware, and social engineering campaigns are now being automated using AI. A single data breach can halt operations, compromise customer trust, and lead to substantial financial losses.

Businesses should evaluate their cybersecurity posture, conduct penetration testing, and confirm that their cyber insurance limits and coverage terms reflect current exposures.

Employment Practices

Workforce issues continue to be a leading source of claims. With new regulations surrounding wage transparency, workplace discrimination, and remote work compliance, businesses must ensure their HR policies are consistent, up-to-date, and properly communicated. Employment Practices Liability Insurance (EPLI) can help protect against costly claims involving harassment, wrongful termination, or discrimination.

Climate Risk and Catastrophic Events

Extreme weather events, such as hurricanes, wildfires, and floods, continue to impact property, supply chains, and operations. Business continuity planning should account for these scenarios. Review your property insurance, business interruption coverage, and supplier contracts to confirm they reflect current replacement costs and geographic exposures.

Corporate Governance

Boards and executives are under increased scrutiny from regulators, investors, and customers. Strong governance practices and D&O coverage are essential to protect leadership decisions. Review your governance policies, reporting practices, and ethical standards to make sure they align with industry best practices and investor expectations.

Contractual Risk Transfer

Partnerships, vendors, and subcontractors all introduce third-party risks. Misaligned indemnity clauses or missing certificates of insurance can leave your business responsible for losses it did not cause. Schedule a contract review with your broker and legal counsel to confirm that your agreements properly transfer and limit risk.

What to Evaluate Before the New Year

A thorough year-end review should include every major component of your organization. Consider these key focus areas:
Operations

• Are your standard operating procedures up to date and properly documented?
• Have you reviewed lessons learned from incidents or near misses?
• Are contingency and disaster recovery plans updated and tested?

Workforce

• Do you have enough staff, and are succession plans in place for key roles?
• Are workplace safety programs active and compliant with OSHA standards?
• Are employee policies aligned with current labor laws and organizational culture?

Cybersecurity Posture

• Have you completed a recent risk assessment or audit?
• Are backup and recovery processes tested regularly?
• Do employees receive ongoing training to recognize cyber threats?

Contracts and Vendor Agreements

• Are indemnity and insurance provisions clearly defined?
• Do you track and verify vendor insurance certificates?
• Have you reviewed contracts for new business lines or partnerships?

Leadership and Governance

• Is your D&O coverage limit still appropriate for your size and risk profile?
• Are governance frameworks documented and reviewed on an annual basis?
• Do you have a plan for reputational risk and crisis communication?

Building Your Risk Roadmap for 2026

Once you have identified your exposures and priorities, it is time to put a structured plan in place. The first quarter is the perfect time to turn insight into action.

1. Map your top priorities.

Rank risks by their potential impact, likelihood, and alignment with your strategic goals. Prioritize those that could disrupt business continuity or financial performance.

2. Budget for proactive investments.

Consider funding initiatives such as cyber training, property improvements, or independent risk audits. These investments not only reduce losses but also demonstrate a commitment to long-term resilience.

3. Revisit your insurance strategy.

Review policy limits, deductibles, and retentions to ensure they align with your risk appetite. Explore alternative solutions such as captives or group programs that can provide greater flexibility and cost efficiency.

4. Collaborate across departments.

Bring together finance, operations, HR, and legal leaders for a strategic planning session with your broker. A coordinated approach ensures that insurance decisions support both risk reduction and business growth.

Partnering for a Stronger 2026

Insurance is only part of the equation. The real value comes from having a partner who helps you connect risk management to your broader business strategy. At AssuredPartners, we help clients translate risk insights into action. Our advisors work alongside your leadership team to identify exposures, evaluate coverage, and design a plan that supports your organization’s growth and financial goals.

By taking a proactive approach now, your business can enter 2026 with greater confidence, stronger protection, and a clear strategy for the year ahead. Contact your AssuredPartners team to schedule a strategic year-end risk review.

Disclaimer:
The information contained herein is offered as insurance industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer financial, tax, legal or client-specific insurance or risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis.