US mid-sized businesses are stepping into 2026 with a mix of optimism and caution. A recent survey by Nationwide reveals that while 76% of these companies feel good about their own future, only 59% have the same confidence in the overall US economy. This shows that these businesses trust their own plans but remain watchful of the bigger picture.
Middle-market companies, which are larger than small businesses but smaller than big corporations, face unique challenges. They deal with risks like lawsuits and regulations but often don’t have big internal teams to manage these issues. That’s why they lean on insurance agents and brokers for advice and support. Kristina Talkowski, Senior Vice President at Nationwide, explains that these businesses look to brokers for insights on insurance options that will make the most difference.
Many of these firms are keenly aware of ongoing pressures such as inflation, tariffs, and labor shortages. They are preparing to handle these challenges to protect their financial health. However, rising costs are a major concern. About 60% of business owners believe both insurance and other operating expenses will increase this year, raising worries about shrinking profit margins.
Insurance premiums are climbing due to higher claims costs, which come from inflation, rising wages, and more lawsuits. This puts pressure on brokers who report that 90% of their clients want to cut insurance expenses. Some businesses are postponing coverage or dropping extras to save money, but this could leave them vulnerable in the long run.
Talkowski suggests shifting the focus from just the price to the value insurance provides. More companies are starting to see insurance as part of a larger strategy to manage risk and protect their business. They want to be smart about how they keep their companies safe and reduce losses, not just about lowering premiums.
One sign of this shift is the growing interest in alternative ways to handle insurance costs. Middle-sized businesses are looking at options like higher deductibles, captive insurance programs, and parametric insurance to have more control over expenses. These approaches allow companies to cover predictable losses internally and use insurance for bigger, unexpected events.
The relationship between insurers, brokers, and these businesses is expected to grow closer as uncertainty continues. Talkowski emphasizes the need for specialists on all sides to work together, share data, and show clear benefits to clients. Business owners want more than just cheaper insurance—they want guidance on all their risks and how to manage them.
In short, while mid-market firms are confident in their own futures, they are carefully weighing the challenges ahead and adjusting their insurance strategies to stay strong in 2026.