How business leaders are adapting to risk and economic uncertainty in 2025
Executives’ indicate they're looking for balance between short-term savings without compromising long-term protection
By: David Dickinson, Customer Research Director, Sentry Insurance
August 27, 2025 – Economic uncertainty is on the minds of millions of Americans. This is especially true for business owners, who say they’re feeling the weight of rising costs and other stressors—and reckoning with what these factors will mean for their business for the remainder of 2025.
Sentry’s 2025 C-Suite Stress Index, which polled 1,000 business leaders and was published in February, found:
47% of executives cite economic uncertainty as their top concern
42% expect their business to remain flat or shrink, rather than grow in 2025
Because of this uncertainty, leaders continue to search for ways to cut costs and stabilize their businesses.
Strategies executives are exploring for economic uncertainty
With the threat of economic headwinds, many company leaders are taking steps to shore up their businesses—often relying on existing technology and equipment to reduce spending instead of making upgrades. In fact, nearly all executives polled (97%) said they’ve made the tough decision to put off needed upgrades due to financial strain and scarce resources. This includes delaying upgrades to business equipment, cybersecurity systems, and technology.
While putting off these upgrades may seem like an opportunity for immediate cost savings, the decision could prove costly in the future.
Equipment failure can lead to costly repairs, logistical headaches, and extended downtime. Additionally, a malfunction in specialized equipment often means sourcing hard-to-find parts, further delaying the delivery of products to customers.
As leaders focus on maximizing existing resources, regular inspections and proper maintenance will be critical. A proactive approach can help pinpoint problems, minimize repairs, and keep operations running smoothly.
Cyberattacks are also likely to be expensive for business owners—and 33% of executives consider cyberattacks to be one of the top threats to their companies in 2025. As leaders postpone updates to their technology and cybersecurity systems in 2025, businesses will need to assess their vulnerabilities to help protect sensitive data.
Looking ahead
To add an extra layer of protection to their businesses, many executives are looking to bolster their insurance coverage. Of the executives polled, 74% don’t feel completely confident that their company’s current insurance coverage is adequate. And nearly all executives (97%) plan to reevaluate their insurance policies this year, though their areas of focus vary:
43% will reevaluate their policies with an eye to adding insurance coverage to lower risks
38% look to shore up areas where they aren’t currently covered but know they should be
Overall, executives’ responses clearly indicate they see a growing set of risks on the horizon, and they’re seeking ways to balance short-term savings without compromising their long-term protection. For many, that includes exploring the best risk-sharing structure with their insurer, which will likely drive many renewal conversations in the coming year.
2025 C-Suite Stress Index
Discover how 1,000 executives view the 2025 landscape, including the trends shaping their decisions, and watch for the next C-Suite Stress Index in early 2026.
About Dave
David Dickinson is the Customer Research Director for Sentry Insurance. In this role, he spearheads efforts to deepen the company’s understanding of customer behaviors and needs to help Sentry deliver tailored experiences that meet or exceed customer expectations.