In early March, Risk & Insurance caught up with Jeff Cole, AVP of national accounts at Sentry®. What follows is a transcript of that discussion, edited for length and clarity.

Risk & Insurance: Sentry recently completed its 2026 C-Suite Stress Index survey of 1,250 business leaders across industries in the United States. One thing that stands out is how executives seem to be focused on day-to-day operational and economic pressures. How does that affect the way leaders think about risks like lawsuits that could potentially threaten the survival of their business?

Jeff Cole: Most executives aren’t ignoring catastrophic risks like litigation – they’re managing the pressures that show up on their desk every day.

In Sentry’s 2026 C-Suite Stress Index, which surveyed 1,250 business leaders across the United States, executives consistently described operating in what amounts to a triage environment—one where day-to-day operational and economic pressures are front and center.

Executives shared they are most concerned with immediate operational issues – things like supply chain challenges (45%), economic pressures (44%), tariffs and trade uncertainty (39%), and labor shortages (38%). These are the risks that affect staffing, pricing, and daily performance. They naturally demand significant attention.

But when leadership attention is pulled toward the “now,” it can make it tougher to prioritize the lower-frequency, high-impact risks like severe weather and litigation.

Our research found that the tension is real: nearly all (93%) executives say their companies have experienced lawsuits in the past five years, yet fewer than one-in-five (17%) rank litigation among their top risks, even though more than two-thirds (69%) believe a single multimillion-dollar verdict could put their company out of business.

This tells us leaders are aware of the stakes—but the demands of running the business every day can make it difficult to consistently focus on risks that may appear only occasionally, even when consequences could be significant.

R&I: Your research shows lawsuits are extremely common for businesses today. Why do you suppose lawsuits are showing lower on executives’ priority lists compared to other risks they’re managing?

JC: What we’re seeing isn’t that executives are dismissing litigation risk — it’s that they’re balancing it against a long list of operational pressures that require attention right now.

Our survey shows that litigation exposure is extremely common. Almost all (93%)  executives say their companies have been affected by lawsuits in the past five years. So this isn’t an unfamiliar risk for most leaders.

At the same time, many executives are navigating workforce shortages, rising operating costs, and ongoing economic uncertainty. When those challenges are affecting daily operations, litigation can sometimes become a risk leaders assume they’ll address if and when it arises, rather than something they actively plan around every day.

Even so, executives clearly understand the potential consequences. More than two thirds (69%) say a single multimillion-dollar verdict could put their company out of business. That’s why many organizations are focusing more on prevention and preparedness — strengthening safety programs, reinforcing procedures, and maintaining clear documentation — steps that can help reduce the likelihood of incidents that could escalate into major claims.

R&I: When nearly seven in ten executives say a single lawsuit could threaten their company’s survival, what does that tell us about how businesses are thinking about resilience today?

JC: One of the things our research makes clear is that litigation doesn’t just create financial risk — it can reshape how leaders spend their time and resources.

In Sentry’s 2026 C-Suite Stress Index, many executives told us lawsuits are already affecting how their businesses operate. Almost half (42%) say litigation has diverted management’s attention, and more than a third (37%) report hiring additional staff just to manage litigation demands. That tells us these cases don’t just happen in the background — they can pull leadership focus away from running the business.

At the same time, executives understand how significant the stakes can be. More than two-thirds (69%) say a single multimillion-dollar verdict could put their company out of business, which highlights the scale of potential exposure, particularly for smaller organizations.

Because of that combination — operational disruption today and existential risk in the future — many companies are strengthening risk management fundamentals like safety programs, employee training, and operational controls to help prevent incidents before they escalate into major claims.

R&I: Another striking finding in your survey is that 84% of executives say employees are performing tasks outside their normal roles or training. What does that tell us about the pressure companies are under right now?

JC: That statistic really highlights how stretched many organizations are right now.

In our survey, 84% of executives say employees are performing tasks outside their normal roles, above their level, or without full training. That’s a strong signal that companies are being asked to accomplish the same—or greater—levels of output with fewer or less experienced workers.

Much of that pressure is tied to ongoing labor shortages and shifting workforce dynamics, where organizations are adapting quickly to keep operations running. Employees are stepping into new responsibilities, covering for open roles, or learning new tasks on the fly.

The challenge is that when people take on unfamiliar work without the right preparation, the risk of workplace injuries and workers’ compensation claims can increase if training and supervision don’t keep pace. Organizations navigating this most successfully likely are strengthening task-specific training, reinforcing clear procedures, and ensuring frontline supervisors actively coach employees as they take on new responsibilities.

Ultimately, the goal isn’t just maintaining productivity—it’s making sure employees can take on those expanded roles safely and confidently.

R&I: Your research also highlights the impact of an aging workforce. What challenges does that create when it comes to maintaining safety and transferring knowledge inside an organization?

JC: One of the most important workforce trends we’re seeing right now is the simultaneous loss and extension of experience.

According to our research, almost all (97%) executives say their organizations are feeling the effects of an aging workforce. At the same time, the dynamics are shifting in two directions. Nearly half (46%) report employees staying in the workforce longer, while more than a third (39%) say groups of employees often retire at the same time, which can create sudden gaps in experience and reduce the transfer of critical knowledge.

That experience matters because long-tenured employees often carry institutional knowledge about equipment, processes, and safety practices—the practical insight that helps organizations prevent injuries and maintain strong safety cultures. When knowledge leaves faster than it can be replaced, the risk of workplace incidents can increase.

We’re already seeing signs of that pressure. About two-thirds (66%) of executives say an influx of unskilled or under-skilled workers is contributing—or could soon contribute—to higher workers’ compensation claims, and 18% say they’re already seeing higher workers’ compensation losses tied to less experienced workers.

That’s why companies may want to focus some effort on structured knowledge transfer, including mentorship programs, job shadowing, and training. Those efforts help ensure when experienced employees retire, the next generation of workers is prepared not just to perform the job, but to carry forward the safety culture that helps protect both employees and the business.

R&I: With all of these workforce pressures, what are some practical steps companies can take right now to reduce injury risk and reinforce safety culture?

JC: What’s encouraging is that many leaders recognize these workforce pressures and are taking proactive steps to strengthen safety.

In Sentry’s 2026 C-Suite Stress Index, more than eight in ten (83%) executives say they plan to increase investment in worker safety in 2026, which signals a growing recognition that protecting employees is essential to maintaining operational resilience.

Many of the most effective steps companies can take are also very practical. Organizations can start by reviewing and strengthening onboarding and task-specific training, especially when employees are asked to take on responsibilities outside their traditional roles. In addition, businesses can consider pairing newer workers with experienced mentors so that critical knowledge about equipment, procedures, and safe work practices is passed on in real time.

Companies also can reinforce safety culture through regular safety briefings or toolbox talks to keep expectations visible and consistent on the front lines. At the same time, leaders who emphasize clear incident reporting and documentation help organizations identify patterns early and address potential hazards before injuries occur.

Ultimately, when companies invest in training, knowledge transfer, and strong safety culture, they protect employees while also reducing operational disruption and long-term risk for the business. &