Economic uncertainty, workforce challenges, and litigation loom large for business leaders
STEVENS POINT, Wis., Feb. 3, 2025 -- A new survey released by Sentry, a leading business insurer, paints a revealing picture of what's keeping executives up at night in 2025. While nearly half (47%) of business leaders are optimistic their companies will thrive this year, a majority (67%) admit they're feeling more stressed compared to last year.
What's interesting is how outside forces—like economic uncertainty or litigation risks—are shaping internal decisions.
The survey of 1,000 business owners, CEOs, CFOs, and CROs at U.S. companies, conducted by Wakefield Research on behalf of Sentry, revealed that small businesses are the most confident about the year ahead. Nearly half (48%) of leaders at companies with 10–249 employees believe their company will thrive in 2025, compared to just 33% of leaders at companies with more than 1,000 employees.
A similar contrast appears in executive stress levels. Heading into 2025, 82% of executives at larger companies report higher stress levels, compared to 68% of executives at smaller businesses.
WHAT'S ON THEIR MIND:
- Top c-suite concerns: Nearly half (47%) of executives cite economic uncertainty as their biggest worry, along with supply chain challenges (44%), rising healthcare costs (41%), labor shortages (38%), and inflation (36%).
- External threats add pressure: Alongside economic and labor factors, 72% expressed concerns about rising litigation and multi-million-dollar verdicts in their industry. Additionally, 90% say their business has been affected by severe weather in the past five years, with nearly two-thirds citing outages that left company, customer, or vendor systems temporarily inoperable.
HOW BUSINESSES ARE RESPONDING:
- Managing facilities and equipment: Nearly all (97%) have put off upgrades recently due to cost pressures or scarce resources—including updates to equipment (48%), cybersecurity systems (47%), or technology (46%).
- Asking more of workers: As businesses prepare to do more with less, 81% of executives admit employees are being assigned tasks above their role and training level.
- Taking extra precautions: As executives prepare to overcome growing outside threats, many are seeking to lower their risk. 74% of executives aren't completely confident their company's current insurance is adequate— with 42% of executives looking to expand their coverage. Meanwhile, 82% of executives plan to boost investments in worker safety during 2025.
"Our research highlighted a recurring theme: managing risk is a big part of managing stress," said David Dickinson, Customer Research Director at Sentry. "Executives are experiencing worsening external challenges and putting strategies in place to protect the future of their businesses. This year, many are increasing safety measures, reassessing their insurance, and making adjustments to navigate external pressures."
Dickinson added, "What's interesting is how outside forces—like economic uncertainty or litigation risks—are shaping internal decisions. Leaders are getting creative with their resources, prioritizing safety and training, and finding ways to protect revenue and grow their business despite evolving challenges."
ABOUT THE SURVEY
Wakefield Research conducted a survey of 1,000 U.S. executives with a minimum of 10 employees, where qualifying roles were as follows: business owner, CEO, CFO, CRO, between November 25 and December 9, 2024, using an email invitation and online survey.
ABOUT SENTRY INSURANCE
Sentry Insurance is a part of one of the largest and most financially secure mutual insurance groups in the United States, holding a Financial Strength Rating of A+ (superior) from AM Best, current as of June 2024.
See ambest.com/ratings/guide.pdf for rating information. Sentry and its subsidiaries sell property and casualty insurance, life insurance, annuities, and retirement programs for business and individuals throughout the country. Headquartered in Stevens Point, Wisconsin, Sentry employs more than 6,300 associates across the country. See a complete list of underwriting companies at sentry.com.
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