2026 Top Business Risks for Construction and Engineering Companies
May 26, 2026 —
Darren Tasker - Construction ExecutiveThe 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this
annual business risk ranking by corporate insurer
Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year.
Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026:
Natural Catastrophes
Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion.
Reprinted courtesy of
Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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ACEC Research Institute Report: Real Risk of AI Isn’t Technology. It’s the Org Chart.
September 01, 2026 —
ACEC Research InstituteWASHINGTON (August 19, 2026) – The ACEC Research Institute today released
Leading Through AI Risk: The Enterprise Framework for Engineering Firm Leaders, a new study finding that the most significant risks artificial intelligence poses to engineering firms are organizational rather than technological, and that firms treating AI as an IT initiative are managing the wrong issue.
The report, part of the Institute’s yearslong Firm of the Future initiative, combines an extensive literature review with in-depth interviews of 21 leaders drawn from engineering firms, public infrastructure owners, technology vendors, insurance and legal professionals, licensing and regulatory agencies, and AI consultants.
The report groups AI risk into eight interconnected domains:
- technical reliability and model risk
- professional liability and standard of care risk
- data governance, privacy, and intellectual property risk
- organizational and workforce risk
- ethical, regulatory, and reputational risk
- operational and cybersecurity risk
- financial and business model risk
- strategic leadership and enterprise governance risk
The last serves as the integrating domain through which firms coordinate responsible AI adoption enterprise wide.
The report stresses that firms do not experience these risks one at a time. Weak oversight may create legal liability. Workforce gaps may affect quality assurance. “Understanding these interactions,” the study notes, “is often more important than understanding individual risks independently.”
About the ACEC Research Institute
The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC). Its mission is to fund and deliver research to equip the engineering industry with actionable intelligence on the issues critical to its success. Learn more at www.acecresearchinstitute.org.
Traub Lieberman Recognized in the 2026 Edition of Chambers USA
June 29, 2026 —
Traub LiebermanIn the 2026 edition of Chambers USA, Traub Lieberman has been awarded rankings in the following categories:
Illinois – Insurance: Dispute Resolution: Insurer
In the Chambers research, clients noted: "The team are technically very strong, responsive, and on top of their cases."
Florida – Insurance: Dispute Resolution: Insurer
In the Chambers research, clients noted: "Traub Lieberman Straus & Shrewsberry distinguishes itself through a combination of deep subject-matter expertise, responsiveness, and practical risk-management orientation." Commenters went on to say: “The team has deep knowledge of Florida property insurance statutes, regulations and case law, enabling effective handling of disputes, appeals and third-party litigation."
Read the full story...Reprinted courtesy of
Traub Lieberman
Presumption of Prejudice Applies to All Affirmative Defenses Regarding Insured’s Failure to Comply with Post-Loss Policy Conditions
June 23, 2026 —
David Adelstein - Florida Construction Legal Updatesn a recent property insurance coverage dispute, an issue on appeal pertained to the “prejudice” jury instruction associated with the insured’s failure to comply with post-loss policy conditions. The trial court found that the prejudice only pertained to prompt notice and not other post-loss policy conditions. This was reversed on appeal as prejudice applied to ALL the post loss policy conditions that the insured failed to comply with, not just the prompt notice requirement. The prejudice presumption applies to all affirmative defenses regarding an insured’s failure to comply with post-loss policy conditions.
Consider this discussion when dealing with an insurer raising prejudice as an affirmative defense to do an insured’s failure to comply with post-loss policy conditions, and the associated burdens of proof:
On appeal, [the insurer] contends the trial court erred by instructing the jury that the presumption of prejudice was inapplicable to all of its post-loss obligation defenses except prompt notice. We agree.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
The ROI of Estimating Accuracy in Preconstruction
September 15, 2026 —
Aaron Kivett - Construction ExecutivePrecision is the foundation of profitability in construction. Even minor quantity or pricing mistakes can swing bids anywhere from 5-15%, leading to project delays, unprofitable jobs or margin erosion through change orders. And worse, these losses can damage client trust and jeopardize long-term relationships that drive repeat business and future bids. Consistently
estimating accurately builds confidence, speeds up bidding and positions your company to win more profitable projects.
Estimating accuracy is where profit is either protected or lost. In construction, you make your biggest financial decisions before a project ever starts. Once a bid is won, most of the project’s cost structure is locked in. If the estimate is wrong, no amount of execution can fully fix those mistakes. That makes estimating accuracy a business issue, not just an operations issue.
Reprinted courtesy of
Aaron Kivett, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Traub Lieberman Wins Affirmation of Judgment on Pleadings Before the Seventh Circuit
August 16, 2026 —
Dana A. Rice & Adam P. Joffe - Traub LiebermanTraub Lieberman Partners Dana Rice and Adam Joffe obtained affirmation of judgment from the Seventh Circuit Court of Appeals in favor of an Insurance Company. The Insurance Company filed suit seeking a declaration that it had no duty to defend or indemnify its Insured, a Roofing Contractor, in an underlying lawsuit. The Insurance Company issued a commercial general liability policy with a one-year policy term. The policy included an exclusion that barred coverage for any losses arising out of work the insured completed before the date the policy incepted.
Reprinted courtesy of
Dana A. Rice, Traub Lieberman and
Adam P. Joffe, Traub Lieberman
Mr. Rice may be contacted at drice@tlsslaw.com
Mr. Joffe may be contacted at ajoffe@tlsslaw.com
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FERC Issues Show-Cause Orders: Impacts on California and Other Regional Power Markets
July 13, 2026 —
Stephen J. Humes, Alicia M. McKnight & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAt an open meeting on June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show-cause orders under Section 206 of the Federal Power Act to the six FERC-jurisdictional RTOs/ISOs—PJM Interconnection, ISO New England, Midcontinent Independent System Operator, Southwest Power Pool, New York Independent System Operator and California Independent System Operator—along with their transmission owners (TOs), directing each region and the TOs to justify or revise tariff provisions governing how data centers and other large loads connect to and receive transmission service from the grid. These show-cause orders will impact several power markets across the country, including California.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury and
Jason Drogin Atwood
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