One Year In; One Big Beautiful Bill (OBBB) Medicaid Reforms Arriving

A year after it became law, one of the OBBB’s biggest pieces is moving from paper to practice. Signed into law on July 4, 2025, the OBBB established work requirements for adults ages 19 to 64 in states that expanded Medicaid under the Affordable Care Act. The requirements reach 43 states and the District of Columbia and are projected to apply to 18.5 million enrollees. To keep coverage, affected individuals must complete 80 hours of work or qualifying activities each month, enroll at least half-time in an education program, meet a set income threshold, with compliance verified every six months. States must have these programs running no later than January 1, 2027.

On June 1, 2026, the Centers for Medicare & Medicaid Services (CMS) published an interim final rule on how states must run these requirements, and one provision stands out for employers. The rule narrowed the “medically frail” exemption. Individuals must now not only have a qualifying medical condition but also demonstrate that the condition significantly limits their ability to satisfy the work requirements to qualify for an exemption. CMS estimates that roughly 15% of Medicaid enrollees subject to the new requirements could lose coverage.

OBBB does not directly change employer-sponsored group health plan requirements. Employees who lose Medicaid eligibility may seek coverage through their employer’s health plan, increasing enrollment and mid-year special enrollment requests. Here is the part worth flagging for HR: losing Medicaid eligibility is a HIPAA special enrollment event. An employee who loses Medicaid has 60 days to request enrollment in the employer’s plan, twice the usual 30-day window. Employers should confirm that their enrollment process, onboarding materials, and plan documents account for these requests.

CMS Administrator Mehmet Oz said, “We hope by guiding able-bodied individuals in this initiative, we aim to support their path to independence, but hopefully they don’t need to depend on Medicaid, and are supported by employer-sponsored health plans that would free up critical space in the program for our most vulnerable population to receive the care they deserve.”

As the phased in implementation rolls out across the country, employers should be aware of the potential need for mid-year enrollment, field employee questions, and monitor potential downstream cost impacts. Your Heffernan account team is always available to assist.
Guest Author

The regulatory landscape changes fast. Connect with our in-house ERISA attorneys and compliance team to protect your business today. Email [email protected] to talk to our team.

Sara Galeb-Roskopp, UC LAW SF, Class of 2028

How Can Employers Prepare for Summer Vacation Season and PTO Requests?

Summer is on the calendar in a few short weeks, and across the Country employers can expect to see an increase in paid time off (PTO) requests. There are some important ‘Dos and Don’ts’ when it comes to managing employee time off requests.
While ‘vacation time’ is largely at an employer’s discretion, there are presently 3 states that actually mandate general use paid time off- Illinois, Maine, and Nevada. Additionally, there are 15 states that require employers to pay out unused, accrued paid time off to terminating employees while the majority of states permit forfeiture of unused PTO.

Employers should have a clearly documented time off policy, that is uniformly applied to all employee requests. Notice requirements, manager approval processes and any supporting documentation procedures must be communicated to all employees.
For employers subject to FMLA, it’s a best practice to include PTO policy in the same place as FMLA procedures so employees can easily reference the different requirements. If an employer is ‘on notice’ or has reason to know that an employees has a FMLA-eligible reason for leave, even if the employee does not mention FMLA, the employer is required to inform the employee of their FMLA rights. In Fact Sheet #28D, the DOL states “when an employee first takes time off for a reason that may qualify for FMLA leave, the employer must notify the employee whether he or she is eligible for FMLA leave.”

The intersection of Summer vacation plans and FMLA can be tricky. The law does permit employers to require a second (or even third) opinion when they have “good faith reason” to doubt the validity of an employee’s FMLA certification. But an employer that suspects an employee’s FMLA request is a smokescreen for a tropical beach vacation should tread carefully. The Departments would generally resolve questions of veracity in favor of the employee.

The regulatory landscape changes fast. Connect with our in-house ERISA attorneys and compliance team to protect your business today. Email [email protected] to talk to our team.

House Bill ‘Optimizing Participant Tax Incentives through Optional Noncash Selections’ (OPTIONS) Act

The spring flowers are blooming, and the House Democrats and Republicans are getting along (for this day, at least). On April 15, the federal OPTIONS Act was introduced in the House by Greg Steube and Suzan DelBene. The bill would amend the Internal Revenue Code to let employers offer a new kind of benefit option, allowing employees to direct certain employer contributions among multiple tax-favored benefits.

For HR and benefits teams, the biggest advantage is benefit design flexibility. The proposed menu of eligible options includes employer contributions to retirement arrangements, HSAs or HRAs, educational assistance programs under section 127, and potentially other employer-provided benefits that are already excluded from gross income.

If enacted, the bill could help employers tailor benefits to a more diverse workforce by allowing some employees to prioritize retirement savings, while others direct employer dollars toward health care expenses or student-loan-related educational assistance. The bill also applies nondiscrimination concepts similar to those used for cafeteria plans and includes reporting and recordkeeping provisions.

The Press Releases quotes American Retirement Association CEO Brian Graff stating “The OPTIONS Act is a smart, forward-looking solution that empowers employees to direct employer contributions where they need them most, whether that’s retirement savings, healthcare, or paying down student debt.”

The OPTIONS Act signals potential future flexibility in employer-sponsored benefits, and we will watch this bill’s path closely.

The regulatory landscape changes fast. Connect with our in-house ERISA attorneys and compliance team to protect your business today. Email [email protected] to talk to our team.

What Benefits Questions are Employers Asking Right Now?

Q: Do wrap docs need to be distributed to only enrolled members, or all benefits eligible employees?
A: The ‘plan document’ and ‘wrap plan’ (which are often one in the same) are not actually subject to distribution unless a participant requests it. However, the plan summary plan description (SPD) is required to be distributed to all benefit eligible employees at least once every 5 years. It also needs to be provided to new employees when they become eligible for the benefits plans.

Q: We offer 3 medical plans, one of which has an integrated HRA. At this time, we do not include the HRA as a COBRA eligible benefit for anyone, and thus its not included in the COBRA premium. Is this correct?
A: An HRA is a COBRA benefit and needs to be offered as a component of the underlying medical plan since they are considered one bundled plan. There are 2 options for calculating the HRA COBRA rate- past cost method, or actuarial value method (past cost method is the more popular choice). It is important that all COBRA election notices are updated to include the HRA bundled with the applicable medical plan.

Q: An employee was just terminated for theft. Are we allowed to deny COBRA on the grounds of ‘gross misconduct’? What constitutes ‘gross misconduct’ within the meaning of the exception to COBRA?
A: While the COBRA rules provide an exception to the requirement that employers offer COBRA election paperwork to employees upon termination for instances of ‘gross misconduct’, the applicable rules do not define what might constitute this type of event. The DOL states ‘whether a terminated employee has engaged in “gross misconduct” that will justify a plan in not offering COBRA to that former employee and his or her family members will depend on the specific facts and circumstances. Generally, it can be assumed that being fired for most ordinary reasons, such as excessive absences or generally poor performance, does not amount to “gross misconduct.“’ Employers should exercise caution when denying COBRA on this basis, and should clearly document what might result in this denial in their written employee materials and COBRA policy.

The regulatory landscape changes fast. Connect with our in-house ERISA attorneys and compliance team to protect your business today. Email [email protected] to talk to our team.

Six months from now, will your workers be satisfied with their employee benefits elections? Or will they be frustrated with the options and regretful of their selections? Open enrollment plays a critical role in employee satisfaction and the perceived value of your benefits program. The steps that you take over the next few months will determine the outcome of your open enrollment.

Five Common Open Enrollment Pitfalls

The concept of open enrollment is simple. Every year, employees are given a chance to review their benefit options and select the benefits that best fit their needs. In theory, it should be a positive experience for employees… but that’s not how it always plays out.

Here are five ways open enrollment can go wrong.

• Rushed Timelines. The open enrollment period usually lasts for two to four weeks. While that may seem like plenty of time, it can end up feeling rushed. The process often takes place in October or November, so it may overlap with the Thanksgiving holiday break, when workers are preoccupied with family and food and may not be thinking about work. If your open enrollment also overlaps with a busy time at your company, the entire process can end up feeling rushed.
• Missed Deadlines. Even if your workers have ample time, missed deadlines are possible. When people have plenty of time, they tend to procrastinate. As a result, a long open enrollment period may increase the risk of missed deadlines if there aren’t enough reminders.
• Uninformed Elections. Selecting your benefits is a high-stakes decision, so it deserves a person’s full attention. However, according to HR Dive, a study from PlanSource found that employees spend an average of just 18 minutes on the process. This is probably not enough time to read over plan details.
• Constant Confusion. Research from Businessolver found that 85% of employees struggle to understand their benefits. Confusion can make the open enrollment period a source of stress, and employees who don’t understand their benefits may make selections they later regret.
• Lackluster Enthusiasm. If employees don’t like their benefit options, they’re unlikely to get excited about making their selections, and employers may not see a positive return on their benefits program as a result. Rising premiums are particularly likely to put a damper on the experience, and employees may view it as a pay cut.

Strategies for Open Enrollment Success

The challenges are real, but employers and HR professionals who start preparing early can help drive engagement and reduce regret.

1. Build a benefits program that employees will value.

Ultimately, open enrollment is all about the benefits. If the benefit options don’t meet your workers’ needs, no amount of employee education or engagement will change that.

• For diverse workforces, consider offering two or more health plan options. Workers who don’t expect to have significant healthcare costs may prefer a high-deductible health plan, while workers who expect to have higher healthcare costs may want to pay more in premiums for a more robust health plan.
• Consider offering additional voluntary benefits. Vision, dental, life and disability insurance are often offered as voluntary benefits. Employers may want to add extra options, such as identity theft protection and pet insurance, to appeal to a wider range of worker needs.
• Leverage data-driven insights. You may think your benefit offerings are great, but what do your workers think? Satisfaction surveys, participation rates and benchmarking can help you assess your benefits fairly, so you can focus on options that support your business goals.
• Be mindful of the out-of-pocket costs. If premiums, co-pays and other out-of-pocket expenses are too high, enrollment and plan utilization will go down.

2. Create a comprehensive enrollment timeline.

An open enrollment schedule should consist of more than just the start and end dates.

First, it’s important to plan the open enrollment period for a good time. Consider conflicts with holidays, busy periods and other potential issues. Some overlap may be unavoidable, but there should be enough time for everyone to give their enrollment the attention it deserves.

Second, plan out all the notices, events, meetings and reminders that will occur before and during open enrollment. The goal is to ensure that open enrollment stays top of mind, so no one misses the deadline.

3. Make benefits education accessible to all employees.

Most workers need help understanding their benefits. If your education efforts only reach some of your workforce, you may end up with a lot of workers who struggle.

• Appeal to different types of workers. In-person events can be great… for in-office workers. If you have remote and hybrid workers, you’ll need some remote options, too. If your company has satellite offices or graveyard shifts, make sure those workers receive help, too. And if you have workers on leave or receiving COBRA coverage, don’t forget about them.
• Appeal to different types of learners. Graphics for your visual learners, meetings for your collaborative learners, online tutorials for your kinesthetic learners – there should be something for everyone.

4. Build in time for verification and improvement.

Mistakes happen. Even if you prepare everything as well as possible, some problems may arise.

• Give yourself time to review employee elections. This allows you to verify that everything is correct and fix problems before it’s too late.
• Consider how to improve next year’s enrollment. Reflect on what went well and what could have gone better, and conduct surveys to elicit feedback from employees. This should be done immediately to ensure that everything is fresh in your mind.

A successful open enrollment begins long before enrollment materials are distributed. Heffernan Insurance Brokers can help your company design a competitive benefits program and increase engagement throughout the enrollment process. In addition to helping you develop a benefits package that meets your company’s goals, we can act as an extension of your HR team and provide ongoing support. Learn more about our benefits and advisory services.

A lot can change in six months. If you’re waiting a full year between risk assessments, problems and opportunities could slip through the cracks. The mid-year point is a good time for an insurance check-up that assesses your company’s risks, strategies and coverage. Right now, changes in the insurance market, evolving climate risks and emerging tech exposures deserve careful attention.

What a Softening Insurance Market Means for Your Business

A softening property and casualty insurance market has given businesses some relief. According to a report from the Council of Insurance Agents & Brokers, average rates decreased by 1.2% in the first quarter of 2026. Large and medium accounts saw decreases of 2.7% and 1.9%, respectively, while small accounts saw a small average rate increase of 1.1%.

Rates also varied by line. While most lines saw falling premiums, commercial auto was up by 5.8%, umbrella was up by 4.8% and general liability was up by 2.6%. Location can make a big difference, as well. Commercial property rates fell by 5.5% on average, but non-cat properties saw the biggest decreases in rates.

Despite the variation, overall, the market is significantly softer than it has been in recent years. For businesses, this can provide some financial relief from rate hikes. It’s also an opportunity to strengthen your coverage.

• Do you have coverage gaps that you can fill? Emerging risks can lead to new exposures, and this may be a good time to negotiate more robust coverage or add separate policies.
• Do you have sufficient limits? Litigation costs have been rising, and nuclear verdicts can put businesses in jeopardy. Falling rates may make it easier, and more affordable, to negotiate higher limits.

How the Arrival of a Super El Niño Could Affect Property Insurance

Commercial property insurance rates were down by 5.5% in the first quarter, according to CIAB. However, climate risks continue to put pressure on the insurance market.

As predicted, a super El Niño has developed. According to Smithsonian Magazine, this is a naturally occurring climate pattern characterized by warm surface water in the Pacific Ocean. However, the current El Niño is particularly powerful, and it may even be one of the strongest in recorded history.

Whether this is beneficial or disruptive depends on your location. NOAA says El Niño tends to lead to lower levels of hurricane activity in the Atlantic basin, but it can trigger higher levels of activity in the eastern and central Pacific basins. In other words, the Florida and surrounding states may catch a break, but Hawaii may face a challenging season.

El Niño can also trigger increased drought and wildfire risk in the Northwest, according to the USDA. In Southern California, heavy rainfall is possible, and it could increase the risk of landslides, according to the California Department of Conservation. Areas burned in recent wildfires can be particularly vulnerable to flash floods and debris flows.

For businesses, a strong El Niño could increase the risk of property damage and supply chain disruption.

• Does your supply chain include backup options for essential goods that may be disrupted by storms or wildfires?
• Have you taken measures to fortify your property against flood, landslide and wildfire risks?
• Do you have sufficient insurance? Standard commercial property insurance does not cover flood or landslide risks. For the former, you need a standalone flood insurance policy. For the latter, you need a Difference in Conditions policy or endorsement that adds earth movement coverage.

Managing AI and Cyber Exposure

According to a survey from McKinsey & Company, 62% of respondents say their organizations are at least experimenting with AI.

With most companies still in the pilot or experimentation phases of AI adoption, the risk is high. Not all experiments pan out, and businesses may experience setbacks and unexpected liabilities before they start to see value. In one example of what can go wrong, Tom’s Hardware says a Claude-powered AI coding agent deleted a company’s entire database in just nine seconds. Afterward, the AI agent confessed that it violated every principle it had been given.

But AI can be a powerful tool – as hackers have discovered. According to Cyber Defense Magazine, AI-powered malware has emerged as a significant threat. For example, BlackMatter ransomware uses AI to overcome standard cybersecurity tools. AI-powered malware can also act autonomously, which enables hackers to carry out a greater number of attacks, and create personalized attacks that are more likely to trick recipients.

For businesses, technological advancements are both an opportunity and a source of risk.

• Do you have insurance coverage for your AI initiatives? Watch for new AI exclusions in your insurance policies and assess whether additional coverage is needed.
• Are your vendor contracts and software supply chains strong? Your vendors may also be adopting AI, and cyberattacks on software vendors have become common, so it’s a good time to review contracts for indemnification provisions and insurance requirements.
• Are your cybersecurity practices keeping up with new threats? Businesses may need to increase their defenses, for example, by using AI threat detection. Cyber insurance rates have been falling, so this is also a good time to assess your insurance coverage.

Risks are evolving fast. A mid-year review can help identify vulnerabilities before they become costly problems. Heffernan Insurance Brokers can help your business evaluate its risk, strengthen its coverage strategies and build resilience for the future. Learn more about our business insurance options.

Real estate is widely recognized as a reliable long-term investment, but it’s not without risks. Rising natural disaster losses and the resulting insurance market volatility are creating new challenges for property owners, managers, developers and investors. Traditional insurance may not always provide the coverage, limits and prices required, but alternative risk transfer strategies offer valuable solutions.

Understanding Today’s Real Estate Insurance Market

For real estate investors, insurance is a critical component of asset protection, lender compliance and long-term investment performance, so it’s important to know what’s happening in the real estate insurance market.

As of early 2026, the commercial property market has softened noticeably. According to the Council of Insurance Agents & Brokers (CIAB), rates decreased by 5.5% in the first quarter of 2026. This is a complete turnaround from the insurance market of just three years prior, when rates increased by 20.4%.

Insurance markets are cyclical, and it appears we have entered the soft market phase of the cycle. For real estate professionals, this is a source of relief. However, it may be short-lived. Eventually, the market cycle will harden again, and rates will increase.

Properties in catastrophe-prone areas are particularly vulnerable. CIAB says non-catastrophe properties have seen the biggest rate decreases, although even some catastrophe-prone properties have seen rate decreases or improved terms. Going forward, worsening natural disasters could lead to more premium increases and increased difficulty securing adequate coverage.

The forecast for the 2026 wildfire season doesn’t look good. According to CNN, wildfire season started early this spring, with notable fires in Georgia, Nebraska and California. Low snowpack, drought, abundant vegetation and the potential for a super El Niño weather pattern could result in an active wildfire season.

Managing Real Estate Risks

Real estate investors can minimize their risk through proactive maintenance, property hardening, security and monitoring, but some risk will always remain. This is why risk transfer is an important part of any risk management strategy.

Traditional insurance is a common form of risk transfer. However, in some instances, real estate investors may face challenges securing the coverage they need.

• Rising rates may make coverage unaffordable.
• Low limits may provide insufficient coverage.
• Restrictive terms may exclude coverage for key risks.
• A lack of capacity may mean coverage simply is not available.

When real estate investors face these challenges, they can turn to alternative risk transfer strategies.

Five Alternative Risk Transfer Strategies for Real Estate Investors

When the traditional insurance market leaves gaps, alternative risk transfer strategies give real estate investors the tools they need to manage risks and safeguard assets.

If you’re struggling to find the terms, limits or rates you need to manage your real estate risks effectively, one of the following alternative risk transfer strategies may be the solution you need.

• Excess & Surplus Insurance. The traditional insurance market consists of admitted insurers that are licensed by the state and governed by the rules of that state. The excess and surplus market consists of non-admitted insurers. Because these insurers are not licensed in the state, they have more flexibility to design coverage for risks that admitted carriers won’t cover.
• Captive Insurance. In the captive insurance model, the insurance company is wholly owned by the organization it insures. This can be considered a form of self-insurance, but structured in a way to manage risk effectively. Smaller organizations can pursue the captive model by joining a group captive.
• Parametric Insurance. While traditional insurance pays out based on actual losses for covered perils, parametric insurance pays out based on the occurrence of pre-defined triggers. Parametric insurance can be used to cover many types of loss events, but it is particularly common for wildfires and other natural disaster perils, often as a supplemental policy to fill in gaps left by other risk transfer strategies.
• Self-Insured Retentions. A self-insured retention is the amount the policyholder agrees to pay for a loss before the insurer responds. With a large self-insured retention, the policyholder is retaining more risk. This strategy can help lower the cost of insurance, so it can be desirable if the policyholder has a way to cover the retention, such as a parametric policy or cash reserves.
• Carve-Outs. If one risk or asset is making your insurance package unaffordable, excluding it with a carve-out can open the door to more affordable coverage options. The downside, of course, is that the high-risk asset or loss no longer has coverage. However, this risk can be managed through a number of alternative options, such as self-insurance, parametric insurance, or excess and surplus insurance.

Heffernan Insurance Brokers provides customized risk management and insurance solutions for real estate professionals, including property owners, managers, developers and investors. If you’re facing rising premiums, limited capacity or growing catastrophe exposures, our specialists can help you evaluate alternative risk transfer strategies that align with your long-term business objectives. Learn more about our real estate risk transfer solutions.

Whenever you have a child on your premises, there’s a risk of injury. In a school environment serving hundreds or even thousands of students, that exposure increases significantly. Although schools work hard to maintain safe environments, accidents are inevitable. Student accident insurance can fill in coverage gaps left by general liability insurance and help schools demonstrate their commitment to student well-being.

What Is Student Accident Insurance?

Student accident insurance is designed to cover medical expenses stemming from a student injury. Terms can vary, so it’s important to read your policy carefully, but coverage typically applies on a no-fault basis to injuries that occur during or while traveling to or from school, field trips or after-school activities.

If a student experiences a covered injury, the policy can provide reimbursement for out-of-pocket medical costs. Lump sum payments may also be available for certain types of severe injuries or death.

One in Five Pediatric Injuries Happen at School

While hurrying to class during passing period, a student falls down the stairs and breaks a leg.

A basketball hits a student in the head during physical education class, causing a concussion.

A student slips on a wet bathroom floor and breaks two teeth on the sink.

Students spend a significant portion of their time at school, and they are often physically active during this time, so it’s no surprise that injuries are common. According to research published in the Avicenna Journal of Medicine, school injuries account for around one in five of all pediatric injuries.

Schools are responsible for the safety of students. However, no matter how many precautions you take, there is always a risk of injury. Student accident insurance ensures that students will be able to get the care they need after an accident.

Reduce Litigation Risk

General liability insurance can provide some coverage for student injuries, but schools that rely on general liability insurance may expose themselves to coverage gaps and avoidable litigation.

One key issue is that general liability insurance coverage typically requires the establishment of liability. Although standard general liability insurance policies include some no-fault medical expense coverage, this is typically limited to very small claims of around $5,000 or even less. Given the high cost of medical care in the U.S., even moderate injuries can easily incur substantial expenses. To secure compensation for larger claims, the student’s family has to sue the school in order to establish liability, and as a result, the school may face legal burdens and reputational damage on top of core medical expenses.

Student accident insurance works on a no-fault basis, similar to workers’ compensation. When a student is injured, there is no need to establish fault or file a lawsuit. The policy can provide coverage for the medical expenses without litigation.

Consider a situation in which a student slips on a drink spilled by another student in the cafeteria during lunch period. The student experiences broken teeth, a concussion, and a sprained wrist, resulting in tens of thousands of dollars in out-of-pocket expenses. The family cannot afford the medical bills and decides to pursue legal action against the school.

• With student accident insurance in place, the family can receive reimbursement, and the matter can end there.
• Without student accident insurance in place, the family may need to file a lawsuit and prove that the school was negligent. This may involve accusations of things like substandard cleaning, a lack of student supervision, or a poor incident response. The school will have to defend itself, individuals may be called to testify, and the tension may disrupt student learning.

A Commitment to Student Well-Being

When you’re running a school, it’s not a question of whether a student accident will occur. It’s a question of when the next student accident will occur and how severe it will be. With so many students going about their day, participating in school activities, and generally acting like the children they are, accidents are bound to happen.

Schools work hard to provide a safe environment and deliver care when it is needed. For both public and private schools, securing student accident insurance is one more way to demonstrate commitment to student well-being. In today’s environment of rising medical costs and heightened litigation risk, coverage can also help schools manage their financial and reputational exposure.

To learn more about how student accident insurance can help protect your students and reduce liability exposure, contact Heffernan Insurance Brokers.

Offering health insurance is still foundational, but for many employees, it’s no longer enough to differentiate one employer from another. Increasingly, employees view benefits as a reflection of how well employers understand and support their day-to-day challenges, from healthcare affordability to caregiving responsibilities and work-life balance.

According to KFF, 60% of U.S. residents under age 65 had employer-sponsored health insurance in 2025, and the expiration of expanded ACA subsidies makes employer-sponsored coverage even more important for many workers. However, employers that want to remain competitive may need to think beyond traditional health insurance offerings. Here’s a look at some of the most desired employee benefits now.

Weight Loss Drug Coverage

Among U.S. adults age 20 or older, 41.9% are considered obese, according to the CDC. Obesity is linked to other serious chronic diseases, and many people experiencing obesity also have high blood pressure or diabetes.

Losing weight is a struggle, but GLP-1 weight loss drugs like Ozempic have proven to be an effective method. Although some employers have balked at the cost, coverage for weight loss drugs is a hugely popular benefit. In fact, a survey from 9amHealth found that 67% of people say they would be likely or very likely to stay at a job they didn’t like just to maintain access to coverage, while 20% say they would be likely or very likely to consider switching jobs in order to obtain coverage.

Mental Health Benefits

Around one in five U.S. adults lives with a mental illness, according to the National Institute of Mental Health. Even more people may experience stress, grief and other concerns that could benefit from mental health support.

More and more, employees expect their employers to help.

According to a survey from Business Solver, 90% of workers say it’s important for mental health benefits to be offered at enrollment, 89% say Employee Assistance Programs (EAPs) are important, and 89% say access to online mental health resources or clinics is important. However, actual utilization of these benefits tends to be low. This may be, at least in part, because employees are unaware of what’s offered. Only 58% of employees say their company offers mental health programs or benefits, compared to 70% of CEOs.

Fertility, Childcare, and Family Planning Benefits

Fertility and family planning coverage has emerged as a hot benefit in recent years. Although these benefits won’t appeal to all workers, for the workers who are interested, these perks can be extremely compelling.

Childcare can be prohibitively expensive for parents. The Center for American Progress says approximately 134,000 families are pushed into poverty each year over costs. In some cases, parents may leave the workforce because childcare is simply too expensive. By offering childcare benefits, employers can help workers while boosting retention.

Fertility treatments are also often prohibitively expensive without coverage. GoodRx says a single cycle of in vitro fertilization can cost $15,000 to $30,000. USA Today says some workers are job hopping to secure fertility benefits.

Work-Life Balance

It can be hard to achieve work-life balance when you have to spend eight to nine hours a day in an office, five days a week, especially if you have long commutes that take up even more of your time. Many workers are asking for benefits and perks that support better work-life balance.

• Remote Work. A FlexJobs survey found that 96% of workers want remote or hybrid work options. During the COVID-19 pandemic, many employers introduced these options, but in the years since, some employers have been demanding a return to the office, causing friction between workers and employers.
• Flexible Schedules. A strict 9-to-5 schedule doesn’t always make sense, and it can make life difficult for people with other obligations like transporting children to school or childcare. According to Zoom, 70% of survey respondents say they would consider leaving their current job for a more flexible working environment.
• Four-Day Workweeks. The five-day workweek is often heralded as a victory for worker rights, but now many workers are eyeing a four-day workweek. According to the American Psychological Association, only 22% of survey respondents say their employer offers a four-day workweek, while 80% of respondents say they would be happier and just as effective working four days a week.

Customizing Benefits to Your Workforce

Keeping up with benefits trends can help employers remain competitive, but the most effective benefits strategies are tailored to the needs of a specific workforce. While some employees may prioritize HSAs and retirement plans, others may value mental health benefits, family planning benefits or flexible work arrangements.

By offering customizable and voluntary benefits, employers can build programs that support recruitment, retention, engagement and employee well-being across a diverse workforce.

Heffernan Insurance Brokers helps employers design employee benefits strategies that align with workforce needs, organizational goals and compliance requirements. Learn more.

Insurance mistakes can be costly, and when you’re running a nonprofit with thin margins, you don’t have money to waste. To help you stay on budget and on mission, here’s a look at the top five insurance mistakes nonprofits make, and how you can avoid them.

Mistake #1: Assuming You Won’t Be Sued

You’re serving your community and making the world a better place, so why would anyone want to sue you?

As it turns out, there are a lot of possible reasons.

• An employee gets into an accident while running errands for the nonprofit and is found at fault. Now the other driver is suing your organization for medical costs and lost wages.
• You create merchandise as part of a fundraiser, and it includes an illustration that you’ve paid for. Unfortunately, the designer you hired ripped it off from another artist, and now that artist is suing your organization for copyright infringement.
• You’re faced with unexpected emergency costs, so you have to reallocate funds. When word gets around, a large donor sues for misappropriating funds, claiming the donation was earmarked for a specific use and should not have been used for anything else.
• A volunteer is injured and requires surgery. The volunteer doesn’t want to sue, but they also can’t afford the medical bills and lost wages, so they feel they have no other choice.
• You have to lay off some of your workers due to budget restraints. One of the employees you lay off claims they were selected because of their age, race, or gender, and they file a lawsuit alleging unlawful termination.

All organizations have risks, including nonprofits. In fact, nonprofits can come under extra scrutiny because of the important role they serve in the community.

How can nonprofits avoid this mistake? A strong liability insurance program can protect your mission. Common policies nonprofits should consider include general liability, auto liability, D&O, employment practices liability, and volunteer accident and injury.

Mistake #2: Ignoring Coverage Exclusions

If you’re aware of the exclusions in your insurance policies, you can plan accordingly and avoid unexpected costs. A commercial property policy won’t cover wear and tear, so you need to keep up with maintenance. A general liability policy won’t cover auto liability, so you need an auto liability policy.

Problems occur when you don’t know what’s in your policy. For example, if your policies exclude coverage for volunteers, but you think they’re covered, you won’t take the steps needed to secure coverage.

How can nonprofits avoid this mistake? Review your policies for exclusions and discuss the exclusions with your broker if you have any questions. Also check for new exclusions when your policies renew.

Mistake #3: Skimping on Essential Coverage

When budgets are tight, it can be tempting to save on premiums by lowering limits, increasing deductibles, or cutting policies completely. Unfortunately, while these measures might save a little money in the short term, if you end up with uncovered losses, you could be paying much more in the long run.

How can nonprofits avoid this mistake? When you cut coverage, you’re basically deciding to self-insure the loss. Make sure you’re prepared to do that. If a loss occurs, will you have the funds needed to cover your costs, whether it’s a high deductible or the total amount? Also check your legal and contractual obligations to verify that you won’t be in non-compliance.

Mistake #4: Paying too Much for Coverage

You don’t want to skimp on essential coverage, but you also don’t want to pay more for coverage than you have to.

This can happen for a number of reasons, from overlaps in coverage to programs that aren’t optimally structured. When rates go down, as has been happening in many property and casualty lines recently, it may also be possible to lower your costs by negotiating your rates or switching carriers.

How can nonprofits avoid this mistake? Talk to your broker about strategies that you can use to lower costs.

Mistake #5: Working with a Broker Who Doesn’t Know the Nonprofit Market

The nonprofit sector isn’t the same as the for-profit sector. There are different risks, different concerns and different insurance needs.

An insurance broker who understands the nonprofit market can help you identify coverage gaps, create programs tailored to your risks and get coverage from carriers that cater to the nonprofit space. An insurance broker who lacks experience in the nonprofit space may not be prepared to do all this.

How can nonprofits avoid this mistake? Look for an insurance broker who specializes in serving nonprofit organizations like yours.

Heffernan Insurance Brokers is proud to serve the nonprofit sector. Our nonprofit division offers exclusive products and services, access to nonprofit-focused carriers, and competitive prices. Learn more.

Homeownership is a central part of the American dream, but for many Americans, achieving and maintaining this dream has become increasingly difficult. June is National Homeownership Month, and it’s the ideal time to consider what’s needed to become – and stay – a homeowner.

The Growing Challenges to Homeownership

The American Bankruptcy Institute says the U.S. homeownership rate has fallen to the lowest level since 1965. Based on U.S. Census Bureau data, the homeownership rate reached a low of 63%. Just a decade ago, homeownership rates were climbing, reaching a high of 69%, but this trend has reversed.

Affordability is a likely culprit. The U.S. Census Bureau reports the median monthly cost of owning a home with a mortgage increased from $1,902 in 2022 to $1,960 in 2023, and then it increased again to $2,035 in 2024. The figure includes mortgage payments as well as insurance, taxes, utilities and various fees.

The Ongoing Responsibilities of Homeowners

Buying a first home is a major milestone, but it’s only the beginning of a person’s homeownership journey. Homeownership comes with major responsibilities, and homeowners who are not able to meet these responsibilities may be forced to sell, or worse, be subject to foreclosure.

Common threats to homeownership include:

• Wear and Tear. From your roof to your dishwasher, every feature of your home has a limited lifespan. Proactive maintenance can help appliances and structures last as long as possible, but eventually, replacement is necessary.
• Both small-scale disasters, such as kitchen fires and burst pipes, and large-scale disasters, such as wildfires and major storms, can cause massive damage, making homes uninhabitable until expensive repairs can be completed.
• As the property owner, you are responsible for maintaining safe conditions on your land. If a guest trips on an icy porch or a child from the neighborhood sneaks into your pool, you could be financially liable for any injuries.
• Homeowners have to comply with city ordinances, which may require things like yard maintenance and repairs to damage sidewalks. If you need to rebuild after a disaster, you may be required to meet new building codes, which can increase the cost of construction. For homes in neighborhoods with homeowners associations, there may be additional rules and requirements.

Three Ways to Protect Your Investment

Once you achieve your goal of home ownership, it’s important to safeguard your investment. Below are three key considerations.

1. Review your insurance needs.

If a major loss occurs, the quality and scope of your insurance can significantly impact your financial recovery. As you review your coverage, ask yourself:

• Are your limits high enough? If you haven’t increased your coverage limits recently, you might be overdue. Housing prices and construction costs have risen, and many homes are underinsured as a result.
• Do you need coverage add-ons? A standard homeowners insurance policy covers a lot, but it can still leave coverage gaps. Add-ons to consider include sewer backup coverage in case you have a sump pump failure or sewage backs up into your home; ordinance or law coverage in case your home needs expensive upgrades to be brought up to code; and floaters to provide additional coverage for high-value personal items.
• Do you need additional standalone coverage? Some perils cannot be covered under homeowners insurance, even with add-ons. If you want coverage, you need to purchase a separate, standalone policy. Flood insurance and earthquake insurance are two common examples. You may also want an umbrella insurance policy to provide additional liability protection.

2. Plan for maintenance needs.

Homeowners insurance does not cover wear and tear damage. As a homeowner, you must perform regular maintenance and replace items when they reach the end of their lifespan.

• Conduct regular maintenance. Proactive maintenance can prevent worse damage, ultimately keeping maintenance costs down and preserving property value over time. For example, aim to have the gutters cleaned twice a year and the HVAC system serviced once a year. Also make sure you’re testing safety devices like smoke alarms, and keep an eye out for signs of pests, cracks in your foundation, or other problems that need to be addressed before they get worse.
• Budget for repairs and replacements. Keep track of when items will need to be replaced and budget accordingly. For example, if your roof has a 30-year lifespan and it was installed 20 years ago, you should plan on a replacement in the next decade.

3. Harden your home against hazards.

Have you ever wondered why some houses are spared when a wildfire tears through a neighborhood? In some cases, there may be some luck involved, but structural and landscaping designs can also make a difference.

Things you can do include:

• Create a defensible space around your home. There will be less fuel available for flames to spread.
• Consider upgrades. For example, installing ember-resistant vents can decrease the risk of fire.

At Heffernan Insurance Brokers, we help homeowners protect one of their most important financial investments: their home. Contact us for a comprehensive review of your coverage and personalized recommendations.

If your organization plays a role in any part of the food supply chain, it helps feed communities. That responsibility also comes with significant risk, impacting your bottom line, your workforce, and even food affordability at a broader level. When food production companies manage risk effectively, the benefits extend to everyone.

Managing Worker Injury Risks

According to the National Safety Council, the 15 most dangerous industries include agriculture, transportation/warehousing and manufacturing.

• The agricultural, forestry, fishing and hunting sector is the most dangerous in terms of the worker death rate, with 21 worker deaths per 100,000 workers.
• The transportation and warehousing sector is the most dangerous in terms of the days-away-from-work (DAFW) rate, with 210 DAFW per 10,000 workers.
• The manufacturing sector is the fourth most dangerous in terms of the total recordable incident (TRI) rate, with 332,600 incidents in 2024.

The food industry can be dangerous for workers who face threats from heavy machinery, extreme heat and exposure to harmful substances, among other risks.

Employers in the food sector can help minimize the risk of worker injuries with strong safety programs, written policies, proactive OSHA compliance, worker training and personal protective equipment, as well as a company culture that prioritizes worker safety.

What about insurance? A strong workers’ compensation program can provide for workers while helping employers control costs.

Managing Transportation Risks

In 2022, the most recent year for which FMCSA data is available, there were 503,000 police-reported crashes involving large trucks, including 5,279 fatal crashes and 114,000 injury crashes.

Crashes can lead to worker injuries, vehicle damage, loss of cargo, and operational disruption. The potential for liability is the costliest exposure. Rising litigation expenses and nuclear verdicts have made it difficult to predict how much a lawsuit could cost, and the transportation sector has been significantly impacted. According to Marathon Strategies, there were 135 nuclear verdicts of $10 million or more in 2024, a new record, with a mean verdict of $51 million, up from $44 million in 2023. Some states, including California, Florida and Texas, see a particularly large number of nuclear verdicts.

For food distributors, motor traffic accidents are a major concern. Transportation risks extend through other areas of the industry as well, such as when food growers move equipment on public roads. These risks can be mitigated with rigorous driver screening, well-structured safety programs, and investments in driver safety technologies, including AI-powered vehicle monitoring systems.

What about insurance? In addition to robust commercial auto insurance, businesses may need umbrella insurance to boost liability coverage limits and inland marine insurance to cover goods and equipment in transport.

Managing Contamination Risks

Delish says it covered 130 major food recalls in 2025. These recalls included ready-to-eat pasta that was contaminated with Listeria and linked to six deaths, milk that was recalled due to contamination with chemical cleaning agents, and butter that was recalled because of fecal contamination.

Food contamination can spark expensive recalls, lost product, regulatory fines and erosion of consumer trust. In some cases, such as the investigation into Blue Bell Creameries, company executives may even face criminal charges.

Contamination can occur at any stage of food production, starting with pesticide risks on farms and continuing through manufacturing, distribution and sale. Strong safety practices and regular testing can help keep the food supply safe and reduce risk.

What about insurance? Food companies can benefit from both food product liability insurance and food recall insurance.

Managing Crime Risks

Food Shippers of America explains that cargo thieves want goods they can sell easily and without detection, and this makes food and beverage shipments a top target. Thieves may target entire trucks, or they may pilfer small amounts. Cargo thieves may also use deceptive tactics like impersonation to carry out their crimes.

In one scenario, thieves stole 12 tons of KitKat chocolate bars, or 413,793 bars, according to CNN. In separate incidents, CNN reports that thieves stole 40,000 oysters, $400,000 worth of lobster, and crabmeat.

Food manufacturers and distributors can manage their crime risks with strong security measures. In addition to keeping cargo secure while in transit, food companies also need to pay attention to cybersecurity and fraud detection.

What about insurance? Food companies can benefit from cargo insurance as well as cyber and crime insurance policies.

Managing Risks from Mother Nature

Disasters resulted in global agricultural losses of $3.26 trillion over three decades, according to the Food and Agriculture Organization of the United Nations.

Fires, storms, floods, blights and pests have threatened food production for thousands of years, and the threats remain. For growers, natural disasters and pests can destroy crops, leading to disruption for companies further down the food supply chain. Natural disasters are also a threat to manufacturers, warehousers, distributors, and retailers.

What about insurance? In addition to property insurance, food growers can benefit from crop insurance.

Whatever your role in the food supply chain, Heffernan Insurance Brokers can help you manage your risks. We offer risk management and insurance programs for growers, packers, manufacturers and distributors. Learn more.

Employees are often required to travel between worksites or run company errands, and providing a company car is not always practical. As a result, many organizations rely on their employees to use their personal vehicles for business purposes. While common, this practice introduces meaningful risk. Here’s what employers need to know.

What’s the Problem with Using Personal Cars for Work?

The road is a dangerous place. Even if your workers are just going a few blocks to pick up supplies, there’s a risk of injury. In fact, it’s probably the riskiest thing they do all day.

Work-related motor vehicle crashes account for approximately 35% of all work-related deaths, according to the CDC. In every major industry group, motor vehicle crashes are either the first or second leading cause of worker deaths.

Traffic collisions are also a major source of liability. When a worker is involved in a crash, the company may be held liable for any injuries or property damage. These judgements can be huge, and nuclear verdicts of $10 million or more have become increasingly common.

Driving can also be an aggravating activity. Road rage and reckless driving are serious problems, and if your workers participate in bad driving behavior, it could reflect poorly on your company, even if no collisions result. This is also a risk when drivers use company cars, but at least then they should realize they’re representing the company. When workers are driving personal vehicles, they may forget to act professionally.

These are real risks, but with strong risk management practices, they can be mitigated.

1. Start with Screening.

If you were hiring a driver, you’d check the individual’s driving history. If you’re going to have an employee drive as one of their work duties, even if it’s only part of their job and it’s in their own personal vehicle, it’s also smart to check the worker’s driving history.

2. Put It in Writing.

A written policy ensures that everyone is on the same page regarding personal vehicles. Create a policy and train managers and workers to follow it. Also review the policy periodically, or after any incidents or close calls, to see if updates are needed.

Some issues to address in your written policy include:

• Who can use their personal vehicles for work.
• When workers can use their personal vehicles for work.
• What personal auto insurance workers need to maintain.
• What driving habits are expected (for example, no distracted driving, aggressive driving, or speeding).
• How workers should report collisions or other incidents that occur while using their personal vehicles for work.
• Whether workers will be reimbursed or compensated for costs associated with the use of their personal vehicles, and that process.
• What happens if the written policies are violated.

3. Prioritize Worker Safety.

Consider a company with a written policy that says employees must drive at the speed limit and give their full attention to the road. That sounds good, but what happens if mangers don’t give workers enough time to travel and require workers to answer texts or calls on the road?

Company culture has a significant effect on day-to-day practices. Foster a work environment that prioritizes safety – not just in writing, but in the actual actions of your workforce.

4. Secure Hired and Non-Owned Auto Insurance

Your workers need personal auto insurance that meets state requirements for their personal vehicles. However, this coverage is designed to protect them and the people who share a road with them; it is not designed to protect your company. In fact, personal auto insurance typically excludes business activity.

If a worker is responsible for a collision, the injured party may name your company in a lawsuit. The worker’s personal insurance will not cover your company, so you need your own insurance policy for this. This coverage is available through hired and non-owned auto insurance. If a worker is involved in a collision while driving a personal, rented or leased vehicle, hired and non-owned auto insurance will provide liability coverage for your company, making this an important coverage for any company that has workers use non-company vehicles for work purposes.

Are You Overlooking Other Risks?

Heffernan Insurance Brokers can help you understand business exposures and secure appropriate insurance to protect your business and your team. Learn more.

Accidents happen… but they don’t have to. Most workplace injuries are preventable. With the right training, policies and workplace culture, you can lower workers’ compensation costs, protect your operations from disruption, and even save lives. June is National Safety Month, and it’s good time to assess your workplace safety practices.

4,337 Preventable Workplace Deaths

The National Safety Council says there were 4,337 preventable workplace deaths in 2024. There were also 3,950,000 medically consulted injuries.

Serious and fatal injuries can happen in a number of ways. According to the National Safety Council, based on data from 2023 to 2024, four categories of injuries cause a significant portion of days-away-from-work cases: contact incidents; overexertion; falls, slips and trips; and exposure to harmful substances or environments.

• Contact incidents include contact with people, animals, and nonrunning objects or equipment, as well as certain other incidents involving collapse, engulfment or being struct, caught or compressed.
• Overexertion incidents include overexertion while moving objects, repetitive microtasks and other similar injuries.
• Falls, slips and trips include falls to a lower level as well as slips, trips and stumbles moving between levels or on the same level.
• Exposure to harmful substances or environments includes exposure to electricity, extreme temperatures, and other harmful factors.

Traffic collisions are also a major cause of on-the-job injuries. In fact, the CDC says around three workers die in motor vehicle crashes every day.

The Business Case for Worker Safety

Promoting worker safety is one of the most effective things businesses can do to control costs and increase operational efficiency. When you focus on worker safety, the benefits can include:

• Fewer disruptions. When a worker is injured, operations often have to stop while medical care is provided. If the worker is unable to work for a while, the missed days can cause further disruptions to regular operations.
• Better morale. Injuries don’t just affect the worker who was hurt. They affect the entire workplace. Frequent or serious injuries, especially when they result in death, can degrade worker morale. Operational disruptions that put increased pressure on the workforce can also contribute to a negative environment.
• Lower workers’ compensation costs. Your company’s claim history has a direct effect on your rates. By reducing worker injuries now, you can enjoy lower rates in the future.
• Easier compliance. After an injury, your business may be subject to inspections, and you could be charged penalties as a result.
• Enhanced reputation. Worker injuries look bad to customers, partners, investors and job seekers. A commitment to worker safety shows various stakeholders that you’re responsible and trustworthy.

According to the U.S. Department of Energy, studies have shown that businesses can save $4 to $6 for every $1 invested in effective workplace safety programs. And that is in direct costs – the indirect savings may be up to 10 times greater.

How Employers Can Promote Workplace Safety

Employers can improve worker safety and reduce the risk of injuries, but it takes a dedicated commitment and meaningful actions.

Things you can do include:

• Go beyond compliance. Following OSHA regulations is the bare minimum for worker safety. Don’t stop once you complete this step. Continue to work on ways to improve safety.
• Engage in ongoing risk assessment. A thorough review of your organization’s unique risks can help you identify areas for improvement. However, it’s not a one-and-done task. Regular reviews are necessary to make sure your safety programs continue to be effective. Reviews are especially important after changes in your operations, incidents or near misses.
• Elicit feedback from workers. Do your workers feel safe? Giving workers a way to provide honest, anonymous feedback and share concerns without fear of retaliation can strengthen your safety programs. But keep in mind that if workers tell you there’s a safety problem and you do nothing to address it, you’re exposing yourself to liability; make sure you have a process to respond to safety concerns timely and adequately.
• Focus on culture. Written policies and safety programs are important, but they’re only effective if they’re backed by a strong workplace culture that emphasizes safety.
• Invest in tech. New safety tools can help workers stay safe and avoid injuries. There are many options available on the market now, from AI-powered driver monitoring systems to exoskeletons that make heavy lifting safer.

Ready to take control? Heffernan Insurance Brokers can help your small business manage its risks with smart workers’ compensation and workplace safety programs. Learn more.

Do you know what’s more expensive than preventing a data breach? Experiencing a data breach. Businesses of all sizes are vulnerable to cyberattacks, and small businesses with tight budgets may not have the resources needed to survive an incident. Protect your business by implementing affordable strategies to minimize the chance of a data breach.

Small Businesses Have Big Risks

A 2025 study from Coalition found that small businesses tend to underestimate their cyber risks. Although 90% of small businesses admitted that they had experienced a cyberattack at some point, 64% still believed they were too small to be targeted. Unfortunately, size does not protect you. Around 43% of cyberattacks target small businesses, which may be seen as easier targets compared to larger businesses with robust cybersecurity measures in place.

When a cyberattack strikes, it can be costly. According to a report on small and medium-sized businesses from Devolutions, the average cost of a data breach is $4.54 million for organizations of all sizes. For small to medium-sized companies, the average cost ranges from $120,000 to $1.24 million.

A loss of $120,000 sounds a lot better than a loss of $4.54 million, but for a small business with little in the way of cash reserves, it can be just as ruinous.

On top of the direct costs associated with dealing with the attack and complying with data breach notification requirements, you’re also looking at reputational damage. If your customers know that you let hackers get ahold of their personal information, potentially exposing them to identity theft, will they trust you with their information again?

How Data Breaches Strike Small Businesses

Data breaches can occur in a number of ways, including:

• Exploitation of vulnerabilities. For example, unpatched software can result in security flaws that hackers can use to access your system. Cloud misconfigurations are another possible entry point for hackers.
• Social engineering. Cybercriminals often use phishing and social engineering tactics to trick people into revealing sensitive information or clicking on malicious links. These attacks have become more convincing and more frequent as hackers utilize new AI tools.
• Third-Party compromises. If a vendor or partner experiences a cyberattack or data breach, your information could be exposed. Hackers may also infiltrate vendor systems in order to attack downstream businesses.
• Physical access. If your devices fall into the wrong hands, any sensitive information stored on those devices could be exposed.
• Ransomware attacks often involve the threat of public release of sensitive data.
• Inside jobs. Employees and former employees can also cause data breaches. Disgruntled former employees who still have access to sensitive information are a particular risk.

Protecting Your Business Doesn’t Have to Cost a Fortune

If you’re operating on a small budget, there are still steps you can take to reduce the risk of a cyberattack and data breach. In fact, some best practices don’t require any money at all.

• Update your software as soon as patches become available. When vulnerabilities are discovered, patches are needed to eliminate the exposure. If you don’t install updates immediately, a hacker might have time to attack. When possible, use the automatic update settings to ensure there’s no delay.
• Be vigilant against phishing and social engineering. Always be suspicious of messages asking you to provide information or click on a link. Hackers frequently pose as trusted contacts and may have some information about your business. Be vigilant and train your employees to be cautious. CISA offers resources on how to train employees.
• Maintain strong password best practices. Use strong passwords and multifactor authentication to keep accounts safe. Update passwords as necessary, for example, after a security incident or when employees with password access leave your company.
• Keep physical devices secure. In addition to limiting who has access to devices with sensitive information, you can use passwords and encryption. CISA has instructions on how to encrypt files on different types of devices.
• Control access. Restrict who has access to sensitive information, keeping it on a need-to-know basis. Also make sure you’re using a secure, password-protected network and router – public Wi-Fi networks are not secure.

Some Cybersecurity Investments May Be Worthwhile

Even with a tight budget, some cybersecurity measures may be worthwhile, especially when you consider the high cost of a data breach.

Two options to consider:

• Robust firewall, antivirus and cyber intrusion detection systems. There are affordable options for small businesses.
• Cyber insurance. If you experience a cyberattack, insurance can help you recover quickly.

For more tips on how to protect your small business, see the FTC’s Cybersecurity for Small Businesses and FCC’s Cybersecurity for Small Businesses.

Need more help protecting your small business? Heffernan Insurance Brokers provides customized insurance for small businesses. Learn more.

The road is a dangerous place. With the right tools, you can make it a little less dangerous. New trucking safety technologies are helping businesses in the transportation sector reduce the risk of collisions, prevent injuries and reduce their liability. Below are a few technologies to consider.

Inward-Facing Dashcams

Inward-facing dashcams monitor the driver. These dashcams can help identify bad driver habits so training can be implemented before an accident occurs, and drivers may be more likely to avoid risky behaviors if they know they’re being watched.

This is important because driver behavior contributes to a significant number of collisions. According to Risk & Insurance, Motive’s 2026 AI Road Safety Report found that driver behaviors, including smoking behind the wheel, cellphone use, and aggressive driving, are top drivers of collisions.

In the event of a collision, inward-facing dashcams may also help exonerate the driver by showing that the driver was focused on the road and driving safely in the moments leading up to the crash.

Forward-Facing Dashcams

Forward-facing dashcams record the road ahead. After a crash, legal battles can become a case of he-said/she-said, and without a witness, it may be impossible to prove that your driver wasn’t at fault.

Dashcam records can provide evidence. If your drivers are innocent, dashcam video could shield you from nuclear verdicts and tarnished FMCSA Safety Measurement System records. The FMCSA accepts video evidence as part of its Crash Preventability Determination Program.

AI-Powered Dashcams

Dashcams enabled by artificial intelligence go beyond simply recording footage to provide real-time analysis. When you integrate AI into dashcam technology, you can detect problems like distracted or drowsy driving as it happens, so action can occur immediately to control the risk. Forward-facing dashcams with AI can also detect hazards on the road and provide real-time alerts.

What About Privacy Issues?

Some people don’t like being recorded, especially if they think the recordings might be used against them. When introducing dashcams, it’s important to get drivers on board by showing them how the technology can help keep them safe. Businesses also need to assess their potential privacy risks, especially when using AI-powered dashcams that could run afoul of biometric privacy laws. According to ClassAction.org, fleet management and safety company Samsara agreed to pay $3.95 million to settle a lawsuit accusing its Camera ID feature of recording and storing biometric data without the required consent. Review the relevant biometric privacy and wiretapping laws in the states where you operate to make sure you’re in compliance.

Advanced Driver Assistance Systems

The NHTSA estimates that there were 91,000 police-reported crashes involving drowsy drivers in a single year, resulting in 50,000 injuries and 800 deaths. The real numbers may be higher because it’s often difficult to prove that drowsiness was responsible after the fact. Commercial drivers on long hauls can be especially vulnerable.

Advanced driver assistance systems (ADAS) can give drivers the support they need on the road. Important features include:

• Lane Departure Warnings. If the vehicle starts to drift from the lane, an alert notifies the driver.
• Forward-Collision Warnings. If systems detect a hazard ahead, and a collision is imminent, an alert notifies the driver.
• Automatic Braking. If a collision is imminent and the driver fails to respond, the system applies the brakes automatically. Starting in 2029, the NHTSA says vehicle manufacturers are required to make automatic braking a standard feature in cars and light trucks, and the FMCSA has proposed making it required on heavy vehicles as well.

Blindspot Detection

Commercial trucks are large, bulky vehicles, and the driver’s visibility is limited. For decades, the solution to this problem was to have other people give trucks a wide berth. A huge truck can do a lot of damage, so it seems logical to stay out of its way.

Unfortunately, this “common knowledge” may not be so common. A 2024 survey from FinditParts found that fewer than 5% of Americans can correctly point out all of the blind spots on a semi-truck, and 80% don’t realize that semi-trucks have a blind spot directly in front of them. One in three don’t know how to pass a semi-truck safely, and 65% of drivers who feel unsafe around semi-trucks blame the truck or driver.

For truckers, this is a serious problem. Drivers who aren’t aware of blind spots may move into dangerous areas, leading to crashes, and juries that don’t understand blind spots may hold truckers accountable. It’s hard to change public sentiment, but it’s fairly easy to install new blind spot detection systems. These systems can alert drivers to hazards, such as cars and pedestrians, in blind spots, making it easier for truckers to change lanes safely.

Are You Managing Your Risks?

Technology is helping truckers and fleet operators manage their risks, but comprehensive insurance is still critical. Heffernan Insurance Brokers provides transportation insurance and risk management solutions for the transportation industry. Learn more.