When you launch a new nonprofit, you expect to make a difference in your community – not to be burdened with litigation and losses. The reality is that nonprofits face a multitude of risks, and if you don’t manage them, they can interfere with your ability to carry out your mission. A carefully designed nonprofit insurance program can help your organization stay focused on its goals.

Is your nonprofit insurance up to the job? Before you assess your coverage, make sure you know six critical facts about insurance for nonprofits.

1. Yes, Nonprofits Need Liability Coverage

Who would sue a nonprofit? Well… a lot of people. Litigation can come from donors, regulators, clients, volunteers, employees, vendors and any other party with a stake in operations or potential exposures to losses.

The reality is that nonprofits are held to high standards, and they’re under constant scrutiny. Litigation isn’t just possible. It’s common.

2. Abuse Exclusions Are Common

Some of the most expensive lawsuits against nonprofits involve allegations of sexual abuse.

In recent years, states have enacted new rules that allow victims to pursue claims after the statute of limitations would have normally passed, either by extending the statute of limitations or by giving victims an additional window during which claims are possible. The FBI says that changes to the statute of limitations in civil cases may be applied retroactively, depending on the details of the amended statute.

These changes have exposed many organizations to claims stemming from abuses that occurred years or even decades ago. The impact on the insurance market has been significant. Standard commercial general liability insurance typically excludes abuse claims, so nonprofits need to secure coverage through an endorsement or stand-alone policy, and this has become more challenging as insurers raise rates or decrease capacity. According to Insurance Journal, an insurer of New York hospitals has declared bankruptcy, citing child sexual abuse claims as the reason.

In light of these challenges, nonprofits that work with children and other vulnerable populations should brace for high rates and plan on working with a knowledgeable insurance broker to secure adequate coverage.

3. Your Board Members Face Personal Liability

Nonprofit board members have some protections, but they can still be sued if they are accused of certain things, such as negligence or breaches of fiduciary duty. If they are named in a lawsuit, they can be held personally and financially liable.

Nonprofit D&O insurance provides protection for the leaders of a nonprofit organization, including the board members, and leaders who understand the risks may want to confirm coverage before agreeing to serve.

4. Volunteers May Require Special Coverage

Many nonprofits rely on both employees and volunteers, often acting side by side and in similar roles. This can lead to coverage gaps if your insurance policies only cover employees and not volunteers.

For example, workers’ compensation often does not cover volunteers. If a volunteer is injured, the nonprofit may be expected to pay for the medical costs and any other damages, but without insurance, this could jeopardize the nonprofit’s financial strength. Volunteer accident insurance provides no-fault coverage.

5. Your Organization Could Be Sued After a Crash

If a volunteer is involved in a crash while using their personal vehicle to run errands for your nonprofit, who is liable? If the volunteer is found to be at fault, you may expect their insurance to pay for the damages. However, your nonprofit may also be named in the lawsuit, and the volunteer’s personal insurance likely won’t cover your organization.

Hired and non-owned auto (HNOA) insurance was designed for this type of situation. You can add it to your nonprofit’s commercial auto insurance. Employees and volunteers will still need to maintain personal car insurance, but if your organization is named in a lawsuit, your HNOA insurance can cover you.

6. Litigation Costs Are on the Rise

If you spend much time reading about the insurance sector, you’ll probably see something about social inflation and the increase in nuclear verdicts. Social inflation refers to the general increase in liability costs above and beyond normal inflation, while nuclear verdicts refer to especially large jury verdicts, usually defined as at least $10 million.

These trends have put pressure on organizations, some of which can be bankrupted by a single lawsuit, and on the insurers that cover them. Although liability coverage has become more expensive as a result, many organizations find it’s prudent to carry high limits, including an umbrella liability insurance policy that adds an extra layer of coverage.

Do You Know What Insurance Your Nonprofit Needs?

Knowing these six things will help you secure the insurance you need to protect your mission, but there are many other details to consider. Heffernan Insurance Brokers offers insurance programs designed for nonprofit organizations like yours. Learn more.

Property owners are meeting demand for unique, local experiences by offering short-term rentals and boutique hotels. These accommodations provide a charming alternative to traditional hotels and motels, but they also involve risks. As the market grows, so does the need for boutique hotel and short-term rental insurance.

The Booming Short-Term Rental Industry

The emergence of platforms like Airbnb and Vrbo has made it easy for property owners to rent their properties on a short-term basis, and many vacationers prefer to stay in unique homes, cabins, villas and cozy hotels. As a result, the boutique hotel and short-term rental market is booming.

• Boutique Hotels: According to Yahoo Finance, the global boutique hotel market is expected to achieve a compound annual growth rate (CAGR) of 7.1% between 2024 and 2030, to reach $40.26 billion. This growth is fueled by demand for personalized and unique travel experiences.
• Short-Term Rentals: Meanwhile, Grand View Research says the U.S. short-term vacation rental market is valued at $68.64 billion as of 2024 and is expected to grow at a CAGR of 7.4% between 2020 and 2030.

Boutique Hotel and Short-Term Rental Risks

The very nature of the hospitality industry makes it vulnerable to a wide range of exposures. For boutique hotels and short-term rentals, often run by owners with minimal staffing, these risks can be particularly challenging to manage.

Common threats include:

• Property Damage. Damage can stem from natural disasters like storms and wildfires, but it can also be the result of careless or vindictive renters. A guest who breaks rules and throws a big party, or a renter who’s angry about something and decides to trash the place, could cause thousands of dollars in damage. In one example, WPTV says teens who threw a party at an Airbnb caused an estimated $7,000 in damage, plus lost revenue from a booking that needed to be cancelled.
• Squatters could move in if a property is vacant between rentals, and renters could become squatters if they refuse to leave once their rental period is over. In one example, ABC 7 Eyewitness News says an Airbnb tenant refused to leave once their planned stay was over and remained in the home for 17 months without paying rent.
• In response to housing shortages, some jurisdictions have passed new rules prohibiting or restricting short-term rentals. Bloomberg says newly enacted regulations include rules that require homeowners to occupy the property along with their guests, limit the number of homes a person can list, or cap the total number of nights a property can be rented in a year.
• The NFPA says short-term rentals have experienced an increase in deaths and injuries, including more than 100 children who drowned in pools in 2022. Property owners and managers may be held liable for injuries that occur on the premises.

Why Standard Homeowners Insurance Isn’t Enough

If you’re turning your home into a boutique hotel or short-term rental, you likely already have homeowners insurance – but standard homeowners insurance won’t be enough to cover your additional risks.

Personal insurance policies, including homeowners insurance, typically exclude commercial activities. Renting out your property increases your risks, so insurers aren’t willing to cover these extra risks under the same policy at the same cost.

Some platforms like Airbnb offer some protection for hosts, but these protection plans can be limited, and you can still end up with coverage gaps after a loss.

Boutique Hotel and Short-Term Rental Insurance Needs

Having adequate insurance coverage can safeguard your property, your business and your financial security. Here are some common insurance types that you may need when operating a short-term rental or boutique hotel.

• Commercial Property Insurance. Depending on your situation and the insurance carrier you use, you may be able to add a short-term rental endorsement to your homeowners insurance policy. Alternatively, you may need a separate policy.
• Liability Insurance. Commercial activity comes with greater liability risks. Consider securing an umbrella insurance policy to increase your limits.
• Employment Practices Liability Insurance. If you have employees, EPLI coverage can protect you from employment-related claims involving things like discrimination, harassment and wrongful termination.
• Workers’ Compensation. If you have employees, you may be required to carry workers’ compensation insurance under state law. If a worker is injured, this coverage will take care of the worker and protect you from lawsuits.

Depending on your unique activities and exposures, you may benefit from other types of coverage as well. Heffernan Insurance Brokers can help you review your risks and coverage needs. Contact us.

Health care costs in the United States continue to climb, placing increasing pressure on employers and employees alike. Organizations that offer health benefits are challenged with managing escalating expenses while maintaining transparency and trust with their workforce.

As employers are likely to spend more on health care, it’s important for them to understand the drivers behind rising health care costs and communicate these realities effectively to their employees. It’s no longer reasonable for organizations to fully absorb cost increases, so cost sharing is one of the primary ways they will deal with rising costs this year and beyond.

This article explores why health care costs are continuing to rise in 2026 and how to communicate this to employees.

2026 Health Care Cost Projections

Finding ways to manage rising health care costs while keeping benefits affordable for employees is critical for employers in 2026; however, it won’t be easy. Health care costs in the United States continue to climb at a staggering pace. A recent Business Group on Health (BGH) survey revealed that U.S. employers predict a 9% increase in health care costs for 2026. This would be the most significant annual increase in health care costs in more than a decade, outpacing recent years where organizations generally predicted 7%-8% growth in costs. The projected 9% increase is before plan design changes and is 7.6% after cost-control measures, such as cost sharing, revisiting benefits offerings and evaluating vendors. Other surveys are also predicting a cost increase between 8.5% and 10% in 2026.

Reasons Why Health Care Costs Are Rising

Employers credit the 2026 increase in part to general rising pharmacy costs, especially the high cost and usage of glucagon-like peptide 1 (GLP-1) agonists, spending on cancer care, more prevalent high-cost treatments, rising incidences of chronic and complex conditions, and an uptick in mental health conditions. BGH survey results revealed that employers expect pharmacy cost trend to increase by 12% in 2026 (11.3% after plan design changes).

According to the BGH survey data, employers are implementing several cost management strategies. Surveyed employers say they will focus more on preventive care and screening coverage, limit or reduce coverage for GLP-1 agonists, bargain harder with vendors and explore nontraditional prescription drug models.

In preparation for 2026, employers are expected to double down on cost-containment strategies, including more aggressive contract negotiations, increased cost sharing and greater investment in employee well-being programs aimed at reducing long-term health risks. There’s also growing interest in alternative funding models, such as level funded plans.

Employers may also focus more on preventive care and screening coverage, limit or reduce coverage for GLP-1 agonists, bargain harder with vendors and explore nontraditional prescription drug models.

Communicating With Employees

Transparent and empathetic communication is essential to help employees understand and navigate rising health care costs. Consider the following communication strategies:

• Develop clear, concise and simple messaging. Employers should avoid jargon and complexity when sharing open enrollment and general employee benefits It’s important to use straightforward language to explain why costs are rising and what steps the organization is taking to manage them. Consider highlighting any positive changes, such as coverage for more specialty drugs or added wellness benefits.
• Educate employees on cost drivers and plan usage. The end goal is to help employees become informed health care consumers so they feel confident in their health care decisions and make informed decisions that can result in lower To do this, employers can share insights on how employees can use their plans effectively, avoid unnecessary costs and understand the value of their benefits. Resources like cost comparison tools and provider directories can be helpful for employees.
• Communicate the changes proactively. It’s best to inform employees about benefit changes before they take effect. Regardless of whether the change is for the better or worse, explain the rationale behind adjustments and how they impact care options. This transparency can help reduce confusion and build trust.
• Highlight cost-containment efforts. Show employees what you’re doing to manage costs (e.g., negotiating with providers, using reference-based pricing, offering telehealth or investing in wellness programs). This reassures them that you’re actively working to protect their benefits.
• Use real-world examples. When possible, employers can put benefits offerings in context with real-world scenarios. Employees can relate to stories, so find ways to bring the options to For example, use relatable scenarios to illustrate how cost drivers affect the organization and employees. For example, explain how a new high-cost medication impacts premiums or why increased mental health utilization is a positive but costly trend.
• Explain macroeconomic The main point for employees to understand is that these rising costs aren’t specific to the organization—they are happening everywhere. Employers can share resources that explain why costs are going up (e.g., inflation, labor costs, diagnostics and therapeutics advances and provider consolidation) so that employees understand the bigger picture.
• Use multiple communication No matter the topic, organizations should tailor communication methods to their workforce. Working arrangements, such as on-site, hybrid and remote, also will play into communication channels. For some employers, it may be best to combine in-person meetings, digital tools (e.g., intranet, chat and email), and printed materials to ensure everyone receives and understands the information.

Conclusion

Staying ahead of rising health care costs will require not just tactical adjustments but a strategic rethinking of how benefits are designed, delivered and measured for value. Savvy employers who act now will be better positioned to weather the challenges of this year and beyond. Ultimately, employers can play a pivotal role in helping employees understand and manage the impact.

Contact us today for more workplace resources.

Most retirees will need long-term care at some point, and many are surprised to discover it’s not covered by their health insurance. November is Long-Term Care Awareness Month, and it’s a good time to consider whether long-term care insurance makes sense for you.

You’ll Probably Need Long-Term Care Services

Long-term care refers to services to support personal care and daily activities, such as bathing, dressing and eating. Care may be provided in a nursing home, assisted living facility, or within a person’s home.

According to the Administration for Community Living (ACL), 60% of people will need long-term care. If you’re currently 65, there’s a 70% chance you’ll need long-term care services at some point, according to Yale University. Unfortunately, even though most people will need long-term care, it is an expense that is often overlooked in retirement planning.

The Cost of Long-Term Care

According to CareScout, The monthly median cost for homemaker services is $6,292 as of 2024. A month in an assisted living community costs $5,900 on average, and a semi-private room in a nursing home costs $9,277.

Don’t expect your health insurance to cover this expense. Although some long-term care involves medical care, the ACL explains that most long-term care is not medical in nature. This means it’s typically not covered under Medicare or private health insurance plans. Medicaid will cover long-term care, but only if you meet your state’s income and resource requirements.

Long-Term Care Insurance

Health insurance won’t typically cover most long-term care, but long-term care insurance is available, both as a stand-alone policy and as a hybrid life insurance policy.

Long-term care insurance may seem expensive. According to the American Association for Long-Term Care Insurance, a single 60-year-old man paid $1,200 a year for $165,000 level benefits, while single 60-year-old woman paid $1,9000 for the same policy, based on 2024 averages using the “select” underwriting tier. Those who were older or had known health issues may have paid more.

However, when you compare the cost of insurance to the cost of long-term care, coverage can make sense. When you consider the potential tax incentives, coverage can become even more attractive.

HSA Eligibility and Tax Deductions

You can make long-term care insurance more affordable by leveraging savvy financial strategies that reduce your tax burden. You have two options:

• Use your HSA. You can use HSA funds to pay for qualified long-term care insurance premiums, up to the annual limit, which increase based on age. Verify that the policy meets the requirements to be considered qualified.
• Deduct your premiums. You can deduct qualified long-term care premiums using Schedule A (Form 1040), itemized deduction, or the self-employed health insurance deduction when you file your taxes. As with the HSA strategy, the policy must meet the requirements to be considered qualified, and the amount you can deduct is subject to annual limits, which increase based on age.

Will Long-Term Care Crack Your Nest Egg?

Consider if you could be facing a situation similar to these:

• A couple retires at age 65, and they calculate that they have enough savings to cover a 30-year retirement. Then the husband’s health takes a turn for the worse, and he needs more assistance than the wife can provide. They have to pay for long-term care services, and over the next five years, they see their savings dwindle much faster than expected. The wife is still anticipating a long life, but she is no longer certain that she’ll have enough savings to cover her entire retirement.
• A man retires with a comfortable nest egg. He also owns a house that he hopes to leave to his son. Then he develops mobility issues and can no longer care for himself. His son is busy working and can’t afford to take time off, so he has to pay for long-term care services. He can’t afford the high cost, so he has to take out a reverse mortgage on his house. Now he will not be able to leave the house to his son as he had hoped.

Without proper planning, the cost of long-term care can disrupt retirements and legacies. As the population ages and demand for long-term care increases, the cost of care is likely to rise. If you have not made plans for your future long-term care needs yet, find out if a long-term care insurance policy makes sense for you.

Heffernan Financial Services can help you review your options. Contact us.

The annual Medicare open enrollment period is here, and some enrollees will need to take action to avoid getting stuck in a plan that doesn’t meet their needs. By now, all enrollees should have received a notice about any Medicare plan changes going into effect in 2026. If you don’t like these changes, you have options.

Why Medicare Enrollees Should Pay Extra Attention This Year

In response to financial pressure, some Medicare insurance companies are dropping certain benefits. As a result, it’s possible that your Medicare plan will be discontinued in 2026. It’s also possible that your plan will continue to be offered, but some benefits may be cut.

For people who depend on Medicare, this can be stressful. However, there are still options. In fact, CMS says 97% of Medicare beneficiaries will have access to 10 or more Medicare Advantage plan choices for plan year 2026.

Will Your Medicare Plan Change Next Year?

To see if your Medicare Advantage or Medicare Part D plan is changing next year, check your Annual Notice of Change (ANOC). This is a letter that your plan should have sent out in September, detailing any plan changes. Any changes will go into effect starting January 1.

Possible changes could impact your:

• Your monthly premium may go up or down.
• Out-of-Pocket Costs. Look for changes to your copays (the amount you pay when you access care or buy a prescription) and your out-of-pocket maximum (the most you will be required to pay for covered care during a plan year).
• Many Medicare Advantage plans provide benefits that are not required under Medicare rules, and these benefits can change. For example, some plans offer gym memberships or dental benefits. Your plan may be adding or cutting benefits.
• Prescription Coverage. The amount you pay for certain prescriptions could be changing. There could also be changes to your deductible (the amount you pay out of pocket before your plan benefits apply).
• Watch for network changes. Most plans use networks of providers, medical facilities and pharmacies. If you don’t treat within these networks, you may have to pay more, and your care may not be covered.

If you have not received your Annual Notices of Change yet, contact your plan. You will need this information to make good decisions during open enrollment.

What if You Don’t Like Your Medicare Plan Changes?

When you receive your Medicare ANOC, review the plan changes to determine how they will impact you.

• Are you losing access to your doctor, pharmacy or hospital? If a primary care and specialty doctor you see is no longer in network, you may need to decide between switching to a plan that includes them or finding a new doctor. The same goes for the pharmacy or hospital you use.
• Are your costs increasing? If your premiums or out-of-pocket costs are increasing, you need to determine whether you can budget for the increase. If you can’t, you may be able to find a more affordable plan option. (If you’re really struggling with costs, you can also see if you qualify for the Medicare Savings or Extra Help programs.)
• Are your benefits being cut? If your plan is cutting benefits, consider whether you actually used these benefits or were planning to use them in the new year. If you want the benefits that are being cut, you can look for another plan that still offers them.
• Is your plan being discontinued? If your plan will no longer be offered in 2026, you should find a new plan.

Make the Most out of Your Medicare Enrollment Period

The annual Medicare enrollment period runs from October 15 to December 7. This is your opportunity to find the right plan for your needs, so don’t let it pass you by.

• If you are unhappy with your plan changes, explore your options to see if there’s another plan that suits your needs.
• Even if you are happy with your plan, consider exploring your options. It’s possible that there’s another plan that is an even better fit for you. You won’t know unless you look.

An independent agent can help you understand your plan changes and explore your plan options. Even if your plan hasn’t changed, it’s good to have a second opinion, and independent agents do not charge beneficiaries for guidance.

Do you need help with Medicare enrollment? Heffernan Insurance Brokers can guide you through the process and help you make an informed decision. Learn more.

October 6th, 2025, California Governor Gavin Newsom signed a package of bills aimed at stabilizing and modernizing the state’s “insurer of last resort,” the California FAIR Plan, after the system faced severe stress following January’s wildfire disaster.

The moves are intended to address the California FAIR Plan’s financial vulnerability, improve transparency and oversight, and make policy administration fairer for homeowners.

Here’s a breakdown of what’s going on and why it matters.

The Crisis

In February 2025, the California FAIR Plan reported an estimated $4 billion in losses from the January 2025 wildfires, particularly from the Palisades and Eaton fires. To cover those losses, it assessed insurers $1 billion, half of which insurers may pass back to their customers in the form of increases.

Recently, the FAIR Plan has also sought a 36% rate increase for its policies to remain solvent beginning next spring. If approved, this would be the largest rate hike in the last seven years. However, the increase would affect policyholders differently. While half would see increases between 40% – 55%, some could see rates decrease as much as 78%, but others could face increases exceeding 300%. These new rates would not take effect until renewal, after April 1st. If this rate change is approved, it would be the first time the California FAIR Plan has used wildfire catastrophe models and reinsurance costs in its rate application.

Furthermore, the FAIR Plan has faced criticism and legal pressure for rejecting smoke damage claims from those fire events and for previously being opaque about its financial condition.

The new laws: what changes, and why they matter

Governor Newsom signed several measures intended to stabilize and modernize the California FAIR Plan by April 1st, 2026:

1. AB 226 — Bonding capacity for catastrophic events

This bill allows the California Infrastructure and Economic Development Bank (IBank) to issue bonds on behalf of the FAIR Plan to pay catastrophic claims. That gives the FAIR Plan access to capital that isn’t reliant solely on assessments or rate hikes. It also enables FAIR to secure lines of credit with institutional lenders, allowing for the management of cash flow during crises.

2. AB 234 — Legislative oversight and transparency

Under this bill, two legislative appointees, the Speaker of the Assembly and the Senate Rules Committee chair (or their designees), become nonvoting members of FAIR’s governing committee. The goal is to inject more accountability and public governance over what has been a carrier-dominated board.

3. SB 525 — Equity for manufactured housing

This law requires the California FAIR Plan to offer insurance for manufactured homes that is comparable to what’s offered for more conventional residential properties, thereby closing a coverage disparity.

4. AB 290 — Modernization for payments

AB 290 mandates that the California FAIR Plan establish an automatic payment plan for its policyholders, bringing administrative modernization to the handling of payments.

5. AB 1 — Incentivizing wildfire risk reduction

While not exclusively a California FAIR Plan reform, this bill requires the state insurance department to ensure that its Safer from Wildfires program incorporates the latest fire risk mitigation measures, and that insurers offering property coverage must discount premiums when homeowners or communities take steps to reduce wildfire risk.

The potential impacts, benefits, and caveats

Stabilization, not a cure-all

By enabling the California FAIR Plan to issue bonds and lines of credit, AB 226 helps avoid depending entirely on sudden premium hikes or insurer assessments. That reduces the shock to homeowners and the insurance market in years with catastrophic events. However, it doesn’t guarantee full solvency under extreme losses, as bond obligations still need servicing, and premiums will likely remain under pressure.

More oversight, More accountability

Adding legislative voices to FAIR’s governance could shift the balance toward more consideration of public interest over purely insurer-driven priorities. However, the legislative seats are nonvoting, meaning that actual decision-making authority remains with the insurer operators. For now, some observers note that oversight remains limited, as the new legislative members are nonvoting.

Fairness in Coverage

Requiring equitable treatment for manufactured homes is a step toward inclusivity, and those in mobile or manufactured housing often are underserved in the insurance market. Automatic payment plans should improve and reduce administrative friction for many policyholders.

Encouraging Fire Risk Mitigation

By tying premium discounts to wildfire safety measures, AB 1 promotes proactive behavior, allowing homeowners and communities to reduce their risk and insurance costs. Over time, this could reduce overall losses for the California FAIR Plan and the insurance system.

What Policyholders and Brokers should watch

1. Rate requests and public pushback
   The California FAIR Plan is already seeking a rate increase of ~36% for many policyholders. How regulators handle those rate requests (approve, scale back, or reject) will set the tone for future affordability.
2. How bond financing plays out in practice
   The success of bond issuance as a reliable tool will depend on interest rates, investor appetite, and the structure of the debt. If bond servicing costs balloon, that could restrain future flexibility.
3. Governance changes over time
   Whether legislative influence expands beyond nonvoting roles or whether further reforms shift power will indicate how deeply oversight can take root.
4. Claims disputes, especially smoke damage
   After the recent fires, the FAIR Plan has been sued over smoke damage rejections and was directed by Newsom to handle such claims “expeditiously and fairly.” How aggressively FAIR reforms its claims process, and how courts or regulators enforce consumer protection, will be a key test.
5. Incentive alignment around mitigation
   If homeowners, local governments, and utilities take meaningful steps to reduce fire risk (through defensible space, vegetation management, and building materials), premiums and losses could adjust over time in a virtuous cycle.

A tentative path forward in a volatile landscape

California’s insurance market has been under stress for years as climate change intensifies wildfire risk, and many private insurers have withdrawn from certain exposures, leaving gaps for many homeowners to fill. The FAIR Plan has filled that void, but its structural fragility was exposed by the 2025 fires.

California’s legislative package is a step forward in shoring up the safety net, adding accountability, and modernizing operations, but it doesn’t eliminate all risks. Catastrophic losses may still overwhelm capacity, but these changes could make the FAIR Plan more transparent and fairer to policyholders.

For homeowners, the message is mixed: expect rate pressures, watch for more robust claims handling, and consider investing in fire risk mitigation, if possible, as the rules are tilting more strongly in favor of prevention.

Few decisions carry as much weight as your Medicare plan enrollment. The plan you select will determine which doctors you can see, what’s covered and how much you’ll pay. When a task is this important, you don’t want to let common mistakes lead to bad outcomes. Keep reading to learn how to avoid five mistakes people make when enrolling in Medicare.

Mistake #1: Not Reading Your Annual Notice of Change

Every September, Medicare plans send out the Annual Notice of Change (ANOC) to members. This important letter tells you about any changes to your plan that will go into effect starting January 1.

These changes can be significant. Provider networks, prescription drug coverage and costs may be different for the coming year. You may not like the plan changes, or you may like your plan even more because of them. If you’re not paying attention, you won’t know.

How to avoid this mistake: Check your mail for the Annual Notice of Change. This letter should have arrived in September. If you haven’t received yours, contact your insurer.

Mistake #2: Not Comparing Plan Options

If you’re already enrolled in Medicare, and if your plan is still being offered next year, you may be content to stay in your plan without exploring your options. It’s certainly the easiest course of action – but it can also be a big mistake.

We’ve already seen how your plan may be changing for the new year. However, changes to your current plan aren’t the only variables to consider. Other plans may also be changing, and there may be new plan options in your area. There may be something that’s a better fit for your needs.

How to avoid this mistake:  Take some time to see what else is available. If you don’t find anything you like more, you can rest easy knowing you’re still in the right plan for your needs. And if you do find something that suits you better, you’ll be glad you looked.

Mistake #3: Only Focusing on the Premium

When you’re living on a fixed budget, it can be easy to focus on monthly expenses. However, your monthly premium isn’t the only healthcare expense that matters. You’ll also face out-of-pocket expenses in the form of copays or coinsurance and deductibles. You may also need services or medications that your plan does not cover, leaving you responsible for 100% of the costs. If your budget doesn’t include these expenses, your finances could take an unexpected hit.

How to avoid this mistake: When comparing plans, take some time to add up all your expected healthcare costs. Make a list of the prescriptions you take and the appointments you think you’ll need. Add up the out-of-pocket costs under the plans you’re considering, along with the premium, and see how your actual costs compare. Also consider the plan’s annual out-of-pocket maximum. If you have major health problems during the plan year, this is what you could end up paying for treatment, so it’s good to know.

Mistake #4: Waiting Until the Last Minute (Or Later)

When you first become eligible for Medicare, you have a seven-month Initial Enrollment Period to select a plan. To make sure your coverage starts as early as possible – that’s typically the first day of the month you turn 65 – you need to enroll during the months before your birthday. If you wait until after your birthday, you’ll have to wait until the next month for coverage to start. And if you miss the Initial Enrollment Period entirely, you may have to wait until the General Enrollment Period, which runs between January and March every year.

Once you’re enrolled in Medicare, you have an opportunity to switch plans each year during the Annual Election Period, which runs from October 15 to December 7. The plan you choose will go into effect on January 1 of the next  year. You can enroll at any time during the Annual Election Period, but it’s often smart to enroll early in the period. It’s a busy time for Medicare professionals, and you don’t want to miss your chance or have to rush your enrollment. Also, if you enroll early, you’ll have time to fix any issues that may arise before the Annual Enrollment Period ends.

How to avoid this mistake:  Mark your calendar with the start and end dates of your enrollment periods and make an appointment with your agent as soon as possible.

Mistake #5: Not Seeking Expert Guidance

If you’ve ever been overwhelmed by Medicare enrollment, you may be making the mistake of trying to handle it on your own.

Independent insurance brokers typically represent multiple carriers (although they may not represent every carrier in your area), so they can give you multiple options and help you select one that fits your needs. They’re also paid via commissions from the carriers, meaning you don’t have to pay anything for their services.

How to avoid this mistake:  Reach out to a local Medicare broker for assistance.

Heffernan Insurance Brokers can help you enroll in Medicare with confidence. Learn more.

Have your cybersecurity practices kept up with evolving risks? October is Cybersecurity Awareness Month, and it’s a good time to reassess your cybersecurity practices and to help your clients do the same.

Here are six reminders to help you and your clients stay safe.

1. Passwords should be strong and unique.

Although it used to be common wisdom that you needed to change your passwords regularly, PC Magazine says this is no longer the case – as long as your passwords haven’t been compromised, and as long as they’re good passwords.

A good password needs to be strong. According to CISA, a simple password like 12345 or the name of a pet is too easy to guess. Instead, the best passwords are a long (at least 16 characters) and either a random string of mixed-case letters, numbers and symbols or a memorable phrase of four to seven unrelated words.

Your passwords should also be unique. Although reusing the same password across multiple accounts makes it easier to remember, if one account is hacked, all your accounts will be at risk. You can use a secure password manager to make it easier to keep all your strong, unique passwords. See Wired’s list of the best password managers.

2. Multifactor authentication is important, too.

No matter how strong your password is, there’s a chance it could be exposed in a data breach. That’s why it’s also important to use multifactor authentication. Yes, adding multifactor authentication means you’ll have to take the extra step of entering a code that you receive via email or text, and that can take a minute – but it can save you a huge hassle and expense by protecting you from hacking.

CISA recommends enabling multifactor authentication for each account or app.

3. Modern phishing messages aren’t always easy to spot.

Reuters and Harvard University conducted research to show how easy it is to get top chatbots to compose phishing messages, and how successful those messages are in tricking recipients.

These AI tools mean that everyone needs to be more careful. It used to be pretty easy to spot phishing emails. You just looked for spelling and grammar mistakes. That’s no longer the case. Hackers can now use AI to write highly convincing phishing messages that adopt the right voice without any errors.

Treat every message as if it could be a phishing scam. Don’t click on links, resist rushing to action, and take time to independently confirm any requests by contacting the company via a phone number, email address or website URL that you know is genuine. See the FTC for more tips.

4. Seeing (or hearing) is no longer believing.

Hackers aren’t just using AI to writing phishing messages. They’re also using AI to clone voices and even create fake videos.

AI voice scams in particular are becoming more prevalent. According to NBC News, it’s now easy for scammers to clone your voice from a short audio sample. ABC7 Chicago says a man lost $25,000 to scammers who used AI to replicate his son’s voice.

5. Data you share with AI tools may be exposed.

Always be mindful that your chatbot conversations may not be private.

Some AI chatbot conversations have been indexed by Google Search, allowing strangers to stumble across them while conducting online searches. Business Insider says both Meta’s AI and ChatGPT have had this problem, while Fortune says it’s also been an issue with Grok.

AI conversations may also be used for model training, and the details could make their way into AI outputs. According to Vice, image generators will sometimes generate examples from their training data, and chatbots can also be tricked into sharing personal information from their training data. The University of Arizona also warns that developers may have access to chatbot conversations.

Many AI apps include a default setting which allows the AI app to “learn” from your entries and improve the model for everyone. Go to your account’s settings/data controls to turn this feature off if possible. Finally, avoid sharing personal, financial or medical information in chatbot conversations. At work, beware of sharing company secrets or intellectual property.

6. Keep your software and website up to date.

To ensure you have the latest security patches, it’s important to keep all your website, software and operating systems up to date.

For anyone using Microsoft 10, this is about to become more difficult. Microsoft has announced that it is ending Windows 10 support on October 14, 2025. To keep your computer system up to date, you can install Windows 11, but this is only possible if your computer meets the minimum system requirements for Windows 11, and many computers do not. Alternatively, you can buy a new PC with Windows 11, or you can buy the Extended Security Updates support.

One more reminder: if you don’t already have cyber insurance, you should think about getting coverage. Heffernan Insurance Brokers can help you assess your risks and find a cyber insurance solution that meets your needs. Learn more.

If you look into why transportation insurance rates are rising, you’ll hear a lot about third-party litigation funding. The emergence of third-party litigation funding has coincided with a rise in legal costs, which doesn’t appear to be a coincidence. To rein in losses, there’s been a recent push for lawsuit abuse reform.

What Is Third-Party Litigation Funding?

Third-party litigation funding (TPLF) refers to a financing arrangement in which an unrelated party with no connection to the case funds a lawsuit. The financing arrangement is supposed to benefit plaintiffs (who receive the funds they need to pursue justice through the legal system) and the third-party funders (who may receive a return on their investment if the case succeeds).

While that may sound reasonable in theory, critics have accused the practice of fueling lawsuit abuse, drawing out legal process, and contributing to higher legal costs.

The U.S. Chamber of Commerce Institute for Legal Reform argues that TPLF is problematic for multiple reasons. One issue is that it turns courtrooms into investment opportunities and may incentivize non-meritorious litigation, prioritizing profit over justice. The TPLF industry has experienced tremendous growth in recent years and is currently valued at about $15.2 billion, but it is not regulated and lawyers do not need to disclose TPLF investments to judges, plaintiffs, or defendants.

Social Inflation and Nuclear Verdicts

Many experts point to TPLF as a key driver in social inflation and nuclear verdicts. According to Swiss Re, social inflation has increased liability claims by 57% in the U.S. over the past decade.

The impact on the transportation sector has been especially noticeable. The Insurance Information Institute says social inflation contributed to a $30 billion increase in commercial auto liability claims between 2012 and 2021. Jury verdicts in excess of $10 million – and sometimes far in excess – have become increasingly common.

As an example of a nuclear verdict against the trucking industry, FreightWaves says a Texas jury reached a $90 million verdict (more than $100 million with interest) against a trucking company after a deadly collision between a commercial truck and a pickup truck on icy roads. The driver of the pickup truck lost control and crossed lanes into the path of the commercial truck, but the driver of the commercial truck was found liable for going too fast for the road condition, despite being below the speed limit. The verdict was reversed by the Texas Supreme Court but only after a long and costly legal battle.

There are many other examples of nuclear verdicts against trucking companies, many of which are never overturned. As TPLF does not need to be disclosed, it’s difficult to determine when it is a factor. Nevertheless, TPLF, social inflation, and nuclear verdicts all appear to be related problems, plaguing the transportation sector and driving up insurance costs.

The Push for Legal Reform

If TPLF is the problem, tort reform could be the solution. Lawmakers at both the federal and state level have introduced a variety of proposals to curb legal abuse.

One simple idea is to increase taxes on TPLF. According to the Insurance Journal, critics of TPLF have pointed out that the industry is not taxed enough, with foreign investors sometimes not being taxed at all. One version of the One Big Beautiful Bill included a provision to tax TPLF earnings at approximately 41%, but this rule did not make it into the final version of the bill.

Other proposals have focused on the problems of secrecy and foreign manipulation. According to the Institute for Legal Reform, the Litigation Transparency Act would require disclosure of all TPLF agreements for federal civil cases, while the Protecting Our Courts From Foreign Manipulation Act would prohibit foreign governments and sovereign wealth funds from investing in U.S. litigation.

At the state level, Transport Topics says state lawmakers have been working on reforms to rein in lawsuit abuse. Many states – including Arizona, Florida, Texas, Louisiana, Georgia, and Wisconsin – have introduced or are expected to introduce legislation targeting lawsuit abuse. In Wisconsin, legislators approved a bill to cap noneconomic damages at $1 million, but the governor vetoed it.

This is an issue that affects all transportation companies. Even if you do not suffer a lawsuit yourself, the impact of TPLF, social inflation, and nuclear verdicts may drive up your insurance costs.

Here at Heffernan Insurance Brokers, we’re dedicated to helping transportation companies manage their risks. Learn how we can help you.

Hybrid learning is catching on. Proponents appreciate that it combines the real-world connection of in-person education with the flexibility of remote education, giving students the best of both worlds. However, it’s important for schools to consider the insurance implications of hybrid learning. With this emerging education model, you’re not just getting the benefits of both remote and in-person learning. You’re also getting the risks of both delivery methods. Here are four timely examples.

What Is Hybrid Learning?

Hybrid learning combines in-person and online learning models. Exactly how this works will depend on the school in question. The National Education Association defines hybrid flexible learning, or hyflex learning, as a model in which students can choose to participate in synchronous lessons either in-person, online or asynchronous remote lessons. In comparison, a blended learning model has students take some lessons online and some lessons in person.

In other words, in hybrid learning, students can choose the attendance method that best fits their needs, while in blended learning, all students experience both remote and in-person lessons.

However, schools may define these terms slightly differently, and the terms hybrid and blended learning are sometimes used interchangeably. Stanford defines hybrid learning as courses that include some in-person sessions and some fully online sessions. For example, students may meet in person twice a week and online once a week, and some work may be done asynchronously.

The Risks and Insurance Implications of Hybrid Learning

Regardless of the definition used, hybrid learning uses both in-person and remote learning, so it has risks associated with both models. Some of these risks may be heightened due to the nature of remote education or because resources are spread thin.

Here are four risks to watch.

1. Cyberattacks

In 2020, the FBI warned of Zoom-bombing attacks, or video-teleconferencing hijacking, in which hackers disrupt online meetings and lessons. Several reports involved schools, including an incident in which someone interrupted a remote high school class, yelled profanities, and shouted the teacher’s home address.

Other cyberattacks involve ransomware and data breaches. CNBC warns that identify thieves often target students because children have spotless credit that they can exploit.

While both remote and in-person schools can be vulnerable to data breaches, EdTech says that the remote desktop software used in many online learning platforms can be vulnerable to remote attacks, and hackers often target unsecured endpoints and passwords that are weak or reused.

What’s the insurance implication? Cyber insurance is becoming increasingly important for schools, and cyber insurers will want to see evidence of strong cybersecurity practices. School leaders may also face D&O claims alleging negligent cybersecurity practices.

2. Online Bullying

K-12 Dive reports that a New Jersey school district has agreed to pay $9.1 million to settle a lawsuit accusing the school district of negligence in failing to stop cyberbullying, leading to a student’s death. At least some of the bullying took place on Snapchat. This is one of multiple bullying negligence lawsuits that schools have faced in recent years.

Just because students may be in their own homes, this does not mean they are safe from bullying. As this and other lawsuits show, schools can be held liable for failing to protect students, even if the incidents take place on social media.

What’s the insurance implication? Schools should review their liability policies to see if they have sufficient coverage for lawsuits involving cyberbullying.

3. Student Success

CNN reports that a high school graduate is suing her school, alleging that the school was negligent in letting her graduate with honors even though she could not read or write. She says her teachers passed her onto the next grade even though she could not read or write, and by the time she got to high school, she began using voice-to-text tools to complete assignments. A similar lawsuit has been filed by another student, according to WWNYTV, who says he graduated with a 3.4 GPA even though he cannot read or spell his own name.

These cases did not necessarily involve remote or hybrid learning. However, online courses could make incidents like this more likely, both because it can be harder to monitor students remotely and because it may be easier for students to cheat. This risk is of particular concern given the rise of generative AI. Pew Research Center says 26% of U.S. teens admit to using ChatGPT for schoolwork.

What’s the insurance implication? With two recent lawsuits involving similar allegations, it’s possible that more litigation may follow. Schools should review their liability insurance to see how they’re covered.

4. Tech Devices

Not all students have computers at home, and some schools provide laptops or other devices for students to use. This obviously puts the devices at risk of property damage since students are not always very careful with their devices.

What’s the insurance implication? Check your property insurance policy for exclusions or limits that could impact coverage for devices in students’ possession.

Is your educational institution embracing the hybrid model? Make sure your insurance is keeping up. Heffernan Insurance Brokers offers insurance and risk management for schools. Learn more.

The aging population has created growing demand for more senior living facilities. However, running a senior living facility involves significant risk. Learn about the top liabilities and how you can control them.

1. Elopement

An 85-year-old man walked out of an assisted living facility in Arizona and wandered into the desert. According to ABC 15, a lawsuit alleges that it took staff at the facility about 40 minutes to notice that he was missing. He was found dead.

Unfortunately, incidents like this are common. Dementia patients are often prone to elopement (leaving without permission or authorization), and the facilities tasked with keeping them safe may be held liable when they fail to do so.

2. Pressure Injuries

A woman died in a long-term residential care facility located in Oregon after a pressure ulcer became infected. According to USA Today, the autopsy report cited caretaker neglect as the cause of death, and her family has filed a lawsuit against the facility.

Pressure ulcers, also called pressure wounds or bedsores, can occur when someone is in a bed or chair too long, and seniors with health conditions can be particularly vulnerable. When senior care facility staff don’t take necessary precautions to prevent, identify, and respond to sores, they can be held liable.

3. Abuse

According to the Iowa Capital Dispatch, at least 10 wrongful death lawsuits have been filed against a company that operates multiple nursing homes, assisted living centers and hospices, with allegations that include dependent adult abuse.

Many senior living facility residents are vulnerable, particularly those with dementia or other serious health issues, and allegations of staff abusing the residents in their care are unfortunately common. However, employees are not always the culprits. Residents sometimes attack staff or other residents, and dementia sometimes make residents increasingly aggressive. Dealing with aggressive residents can be challenging, but facilities can be held liable for failing to protect residents and staff.

A senior living facility is being sued for failing to protect a female resident who was sexually assaulted by another resident. According to 2 News Nevada, the lawsuit claims that the attacker had a history of assaults and misconduct, and the facility was aware of this but did not remove him from the facility.

4. Negligence

A woman at a memory care facility in Oregon died of heat stroke after being left outside on a hot summer day. According to The Bulletin, her family has filed a lawsuit seeking $17 million. The family says they chose the facility because it was clean and offered activities, but the Oregon Department of Human Services found that the facility did not have adequate staffing.

While negligence is sometimes tied to abuse and malicious behavior, in other cases, it may simply be a matter of staff being busy with other things. Regardless of the root cause, when residents are harmed, facilities can be held liable.

5. Worker Injuries

Not all liability comes from residents. Workers are also at risk. Caring for seniors can be physically demanding work, especially when residents require assistance with bathing or mobility. As a result, senior care workers face risks including musculoskeletal injuries.

Managing Your Risks

When you’re running a senior care center, a strong commitment to risk management is critical. Proactive risk management isn’t just the best way to keep your residents and workers safe. It’s also the best way to shield your facility from liability that could threaten your ability to continue operating.

1. Risk management starts with hiring. Facilities can reduce their risks by running background checks, checking references and thoroughly vetting workers. However, screening out bad apples is only half the battle. You also need to attract top workers, and you can do that by offering a strong compensation package that includes robust employee benefits.
2. To keep residents safe, workers need to be knowledgeable about the threats to senior safety, state law, and how to respond to concerns. All new workers should be thoroughly trained, and existing workers should receive additional training as needed.
3. Strong policies can help keep residents safe, but only if they’re followed consistently. This means that having good policies isn’t enough. You must also train your team on those policies and require strong documentation to ensure compliance.
4. Even with the best risk management practices in place, lawsuits are possible. Whether or not the lawsuits lack merit, you’ll need to defend your facility, and that can be expensive. To manage their risks, senior care facilities need robust insurance that covers the claims involving abuse, bedsores, elopement, and other risks that are unique to the industry.

Do you have the insurance you need to manage your senior living community risks? Heffernan Insurance Brokers provides coverage for clinical and non-clinical care providers. Learn more.

America’s growers take on substantial risk to keep food on our tables and wine in our glasses. However, hard work isn’t always enough to guarantee agricultural success. To guard against unexpected losses that could threaten your business, you need the right growers insurance. Before you suffer a loss, ask yourself whether you have the coverage you need to protect your business.

Commercial Property Insurance

Your agricultural business likely has multiple structures, such as warehouses, offices, and tasting rooms. Damage to those buildings could be expensive to repair, and you may face disruption to your operations in the meantime. Therefore, having commercial property insurance in place is critical. In addition to a standard commercial property insurance policy, you may want to secure separate policies to cover earthquake and flood damage.

Personal Property Insurance

Many growers live onsite. If your home is located on your land, make sure you have sufficient personal property insurance for your dwelling as well as for your personal belongings.

Crop Insurance

Crop insurance is important for growers, as the success of your business depends on a good harvest. A bad year may threaten your business; several bad years may destroy it.

Multiple peril crop insurance (MPCI) provides insurance coverage for lower-than-expected yields due to natural events, such as weather, drought, fire, flood, disease, or insects. Although it is private insurance companies that sell MPCI, the federal government supports and regulates coverage.

Growers can also purchase crop-hail insurance and crop revenue insurance to supplement their MPCI coverage. Crop-hail insurance provides additional coverage for hail-related losses, while crop revenue insurance provides coverage for lost revenue due to low yields or price fluctuations.

Business Interruption Insurance

After a disaster, lost revenue may be just as harmful as the property damage itself. Business interruption insurance provides coverage for lost revenue after a covered loss.

Auto Insurance

In addition to complying with state requirements for auto insurance, it’s important to secure coverage that protects your business. If one of your employees is found to be at fault in a crash, the resulting litigation could be extremely costly, especially with the recent increase in social inflation and nuclear verdicts. High liability limits with excess or umbrella liability coverage can provide additional protection.

Also consider whether you need hired and non-owned auto insurance coverage. If your employees use vehicles for work purposes that your company does not own, hired and non-owned coverage will provide liability protection for your company in the case it is named in a lawsuit.

Equipment Breakdown Insurance

Standard commercial property insurance does not provide coverage for equipment malfunction. For agricultural businesses, this may result in a massive insurance gap. If the equipment you rely on breaks down unexpectedly, your operations could grind to a halt. There’s even a risk of crop loss. You need to fix your equipment as quickly as possible – equipment breakdown insurance helps you do this while staying within your budget.

General Liability Insurance

Commercial general liability insurance is essential coverage for businesses in many industries, including growers. It provides coverage for many third-party claims, such as those involving bodily injury or property damage as well as claims involving libel, slander, copyright infringement, and other personal and advertising injury claims. In addition to protecting your company in the event of a lawsuit, commercial general liability insurance typically includes medical payments coverage on a no-fault basis.

Pollution Insurance

Pollution-related claims may be extremely costly, and commercial property insurance typically excludes these claims. Pollution insurance (also called environmental insurance) provides important protection for growers and may cover various costs, including property damage, bodily injury, cleanup, and legal defense.

Workers’ Compensation

Agricultural workers are vulnerable to accidents, heat-related illness, chemical exposure, and other serious work-related injuries. In addition to meeting state requirements for workers’ compensation, growers can protect their businesses by securing coverage that protects workers while controlling costs.

Employment Practices Liability Insurance

Lawsuits from employees, former employees, and job seekers may threaten your bottom line. Employment practices liability insurance provides coverage for many employment-related claims, including discrimination, harassment, and wrongful termination.

Does Your Agricultural Business Have Sufficient Coverage?

An agricultural insurance checklist is a good place to start, but each business is unique and insurance terms vary. You may need additional coverage types or endorsements. Some questions to ask include:

• Does your inventory have coverage against damage, leakage, and contamination?
• If you also have a tasting room, do you have sufficient liquor liability insurance?
• Do you have cyber exposures that warrant cyber insurance?

To determine whether your coverage is sufficient, it’s best to work with an insurance agent who specializes in your industry. Don’t wait until you’re facing natural disaster damage or a lawsuit to think about whether your coverage is sufficient – request a review of your coverage as soon as possible.

Heffernan Insurance Brokers offers insurance programs designed for wine growers. Learn more.

Pretty much everyone in the U.S. has heard of Medicare, but many people don’t understand how it works. In addition to mix-ups over Medicare vs. Medicaid – two separate programs – there’s a lot of confusion over the different parts of Medicare. If you’ll be enrolling in Medicare soon, it’s important to learn about Parts A through D and what they’ll mean for you.

What Is Medicare?

Medicare is a federal health insurance program. It provides health coverage for people age 65 and above as well as for some younger individuals who qualify for Medicare enrollment, based on disability or health conditions. In comparison, Medicaid is a joint federal-state program that provides coverage based on financial need. Some people qualify for both Medicare and Medicaid.

Although Medicare is a federal program, various health insurance companies sell private Medicare plans. To understand how the government program works with the private plan offerings, you need to know a little about the four parts of Medicare.

Medicare: A Program in Four Parts

The four parts of Medicare have distinct coverage and costs.

The government-run program consists of Parts A and B. Combined, these two parts are often called Original Medicare or Traditional Medicare.

• Part A provides hospital insurance. It covers inpatient hospital care as well as a few other services, including hospice care and skilled nursing care. Most people qualify for premium-free Medicare Part A based on their work history, but there are out-of-pocket costs when you use your coverage.
• Part B provides medical insurance. It covers things like doctor’s visits and durable medical equipment. You have to pay a monthly premium, plus out-of-pocket costs when you use your coverage. If you can’t afford coverage, you may qualify for financial assistance through the Medicare Savings Programs.

Private health insurers sell Parts C and D in accordance with Medicare regulations.

• Part D provides prescription drug coverage. Since Original Medicare (Parts A and B) does not cover most prescriptions, it’s important to buy a prescription plan. You have to pay a monthly premium plus out-of-pocket costs when you use your coverage.
• Part C is more commonly known as Medicare Advantage. It’s a private option that bundles Medicare Parts A, B, and (usually) D into one plan. If you choose Medicare Advantage, you will still have to pay your Medicare Part B premium plus any premium associated with the Medicare Advantage plan, although this may be as low as $0 and some plans even offer a giveback benefit that reduces the Medicare Part B premium.

What About Medigap?

You may have noticed that the four parts of Medicare leave something out: Medigap. Also called Medicare Supplement Insurance, Medigap plans are supplemental policies designed to work with Original Medicare. In exchange for a monthly premium, you receive coverage for many out-of-pocket costs. This makes your health-related expenses more predictable while also protecting you from catastrophic expenses if you suffer a serious health event.

Although both Medigap and Medicare Advantage are private plans offered by various insurance companies, they are NOT the same and do NOT work together.

Medigap supplements Original Medicare, while Medicare Advantage replaces it. Medigap does not provide prescription coverage (some plans used to, but they no longer exist), while Medicare Advantage plans usually do. This means that if you choose Medigap, you’ll also need to secure a prescription drug plan.

Understanding Your Options

To summarize, you have two basic options.

• Option One: Original Medicare. If you need prescription drug coverage, you’ll need to buy a Medicare Part D plan. If you want to control your out-of-pocket expenses, you can also buy a Medigap plan.
• Option Two: Medicare Advantage. This option bundles your coverage, meaning you won’t need another Medicare plan. Just make sure you enroll in a Medicare Advantage Prescription Drug plan if you need prescription coverage.

People like Medicare Advantage because it is often a simple and affordable option, with many plans providing additional benefits. One downside, though, is that plans often have provider networks and may require prior authorization for care.

One more thing: not all Medicare Advantage, Medicare Part D, or Medigap plans are the same. Most beneficiaries have access to several, if not dozens of Medicare Advantage and Medicare Part D plans in their area. In addition, Medigap plans have different levels of coverage and costs.

Do you need help choosing a Medicare plan? Heffernan Insurance Brokers can guide you through the different types of Medicare. Learn more.

September is Life Insurance Awareness Month, and a good time for adults of all ages to consider life insurance. You may be surprised to learn that life insurance isn’t just for those over age 40 or married with children. In fact, many younger individuals recognize the advantages of securing life insurance as early as possible.

Life Insurance Perceptions: Surprising Data

In LIMRA’s 2024 Insurance Barometer, 42% of respondents said they need life insurance or need more than they currently have. Interestingly, 46% of Millennials and 49% of Gen Zers said they need coverage.

Interest in life insurance tends to coincide with general financial concerns, and the survey found that among all generations, Millennials had the highest levels of financial concern. Additionally, Gen Z’s concern about finances has increased by 8% in just two years. This could be the result of rising costs, but it could also be because the oldest Gen Zers are approaching 30 and starting to take on more family responsibilities.

Overcoming Barriers to Coverage

Nearly half of the adult U.S. population recognizes the need for more life insurance coverage. What’s stopping these people from buying the protection they need? LIMRA found that cost was the primary reason – a reason that is possibly unfounded considering that 72% of respondents overestimated the cost of a basic term life insurance policy.

In other words, people think they can’t afford life insurance, even though they probably can.

While the cost of a term life insurance policy varies based on a number of factors, including age, health, the benefit amount, and the length of the policy term, coverage is surprisingly affordable for most people. For instance, according to MoneyGeek a 30-year-old woman might pay $15.00 a month for a $250,000 policy with a 10-year term.

The Advantages of Buying Coverage Young

Because life insurance rates increase based on age and health risks, it’s smart to buy coverage as early as possible, and to lock in a 30-year term if it makes sense for you. For instance, if you purchase coverage when you’re 30 years old, you will be covered through age 60, at the low rate you locked in three decades prior.

There are also other reasons to buy coverage when you’re young.

Although a young, healthy person’s odds of death are low, they are not zero. Nobody knows what the future will hold, and unexpected events like car crashes and cancer diagnoses are always possible. It’s smart to be prepared. An unexpected death often creates a financial burden for surviving family members. However, an inexpensive life insurance policy can make life easier for your loved ones by covering final expenses, paying off your remaining debts, and providing for those who rely on your income. Life insurance can also be used to leave a gift for a beloved charity if you choose.

Finding Coverage That Meets Your Needs

There are multiple types of life insurance policies, some of which are more expensive than others. Here are two general categories:

As the chart illustrates, a permanent life insurance policy that builds a cash value will cost significantly more than a term policy. You’ll also have to pay more if you want a larger benefit – a $1 million term policy will cost more than a $250,000 term policy.

If you need affordable coverage that will ensure your family is taken care of, a term life insurance policy with a modest death benefit is a great option. More comprehensive coverage or additional benefits are also available. You can also layer multiple types of policies to maximize your protection levels.

Don’t let the options overwhelm you. An insurance broker can help you assess your life insurance needs and explore your options to find a policy that works for you.

Do you need life insurance? Heffernan Insurance Brokers offers a complimentary review and assessment. Learn more.

If anything goes wrong, will you be covered? Don’t let an uncovered lawsuit threaten your business. Contractor’s liability insurance provides essential protection for construction professionals.

Who Needs Contractor’s Liability Insurance?

Contractor’s liability insurance is appropriate for contractors, subcontractors, carpenters, roofers, electricians, HVAC repair technicians, plumbers, handymen, landscapers, painters and other workers in similar industries. Whether you own a business that employs others or you work for yourself as an independent contractor, it’s important to have sufficient liability coverage in place.

Is Contractor’s Liability Insurance Required?

Contractor’s liability insurance may be required.

• Licensing Criteria: Contractors need to meet the licensing requirements established by the state where they operate, and this frequently includes insurance requirements. See your state licensing board for details.
• Contractual Obligations: Contractors may also need to carry insurance to meet the requirements established in contracts. To avoid a breach of contract, it’s important to maintain the appropriate coverage required by those who hire you.
• State Law: Contractors may be required to maintain certain types of insurance under state law. For example, states typically require drivers to maintain auto liability insurance and employers to maintain workers’ compensation coverage.

It’s important to meet your legal and contractual obligations by securing the required coverage, but keep in mind that you may want additional coverage to protect yourself and the business you’ve worked hard to build.

Key Coverages for Contractors

You may need multiple policies to cover your contractor liability risks. A broker can work with you to determine an insurance package that makes sense in your situation. Common contractor insurance policies include:

Commercial General Liability Insurance. General liability insurance is a staple policy for many businesses, and contractors may be required to maintain general liability insurance coverage under state licensing requirements. For example, in Oregon, residential general contractors are required to carry general liability insurance with a per-occurrence limit of at least $500,000, while a level 1 commercial general contractor needs to carry a minimum aggregate limit of $2 million.

Commercial general liability insurance provides coverage for many common lawsuits, including ones involving third-party property damage or bodily injury. It also provides coverage for personal and advertising injury claims. For example, if you’re sued over copyright infringement in your advertising, you may have coverage under your commercial general liability insurance policy. However, commercial general liability insurance doesn’t cover every type of lawsuit, so you may need additional coverage types.

Commercial Auto Insurance. Any vehicle owned by your business needs to be insured with commercial auto insurance. Also consider whether any personal vehicles used for work have sufficient coverage. For example, if an employee is in a crash while transporting equipment, your company could be named in a resulting lawsuit, and the employee’s personal liability insurance wouldn’t cover your company. This is why it’s smart for businesses to secure hired and non-owned auto insurance for personal vehicles used for work purposes. (The employee still needs personal auto insurance!)

Workers’ Compensation. If you have employees, you most likely need to carry workers’ compensation insurance under state law. Due to the high risk of injury, some states have additional workers’ compensation requirements for construction businesses. For example, California requires all employers to carry workers’ compensation insurance, even if they only have one employee. Additionally, certain contractors (C-8 Concrete contractors, C-20 Warm-Air Heating, Ventilating and Air-Conditioning contractors, C-22 Asbestos Abatement contractors, C-39 Roofing contractors and C-61/D-49 Tree Service contractors) need to carry workers’ compensation or a valid certification of self-insurance even if they don’t have employees.

Contractor Bonds

In addition to contractor liability insurance, you may need to secure surety bonds. Bonding is often required for contractor licensing. You may also need bonds to bid on or accept a project.

Although surety bonds can seem like liability insurance policies, there are some significant differences that will become relevant if you ever have a claim. A liability insurance policy protects the policyholder against claims. A surety bond protects another party by guaranteeing that the bond holder will fulfill his or her obligations. When an insurance carrier pays a claim, you don’t have to pay it back. When a surety bond company pays a claim, you are required to pay it back.

Other Construction Coverages to Consider

Securing adequate liability insurance protects your business against lawsuits, but you also need to consider risks to your own property and operations.

For example, if you are working on the construction, renovation or repair of a building or other structure, builders risk insurance provides protection against common losses such as vandalism, fire and storm damage.

As more processes move online, cyber insurance also provides valuable protection. Ransomware attacks, data breaches and other cyber events can be both expensive and disruptive. Cyber insurance can offset the financial impact and help you recover faster.

Having the right insurance in place can help you fulfil your contractual obligations, minimize disruption to your projects and grow your business with confidence. Do you need help navigating your contractor’s liability insurance needs? Heffernan Insurance Brokers provides customized solutions for the construction sector. Learn more.

In 2024, Heffernan Insurance Brokers partnered with Fulcrum, an AI workflow automation platform purpose-built for insurance, to accelerate operational efficiency and reduce manual workload across core workflows. The initial focus was on proposal generation — a high-volume, time-intensive task for account managers and producers. Fulcrum’s automated Proposal tool streamlined this process by eliminating duplicative data entry and enabling the creation of client-ready, brand-consistent proposals in a fraction of the time. On average, the tool saved hours per proposal and reached 100% adoption across the sales team within months.

The success demonstrated both the impact and scalability of AI-driven workflow automation within our operations. With proposals fully optimized, we turned our attention to a more complex, business-critical opportunity: modernizing the policy checking process.

The Challenge with Policy Checking

Policy checking is one of the most risk-sensitive workflows in commercial insurance. Even small discrepancies between a bound quote and the issued policy can introduce errors & omissions (E&O) exposure.

At Heffernan, tens of thousands of policies are processed annually, with the majority of checks done manually and requiring external capacity. This approach, though the conventional method for most brokerages, introduced high costs, long turnaround times, and variability in review quality — often due to inconsistent training and limited system integration.

It became clear that we needed a better solution: one that was faster, more accurate, fully integrated with our core systems, and allowed us to own the process end-to-end.

Deploying Agentic AI for End-to-End Policy Checking

To address the challenges of policy checking, Heffernan worked with Fulcrum to develop and deploy an agentic AI workflow capable of managing the full lifecycle of a standard policy check. The system sources the relevant policy documents from Applied Epic, compares all coverage details at a granular level, and identifies discrepancies for resolution. Where issues are detected, the AI can flag required changes, push edits to Applied Epic, as well as draft and send requests for correction directly to the carrier. Once validated, the finalized policy is routed back through Epic and delivered to the client.

Fulcrum’s deep integration with our systems, combined with tailored business logic, allows the AI to execute this process seamlessly, maintaining consistency, accuracy, and turnaround speed at scale.

The Results

The results have been transformational. We’re now transitioning 80% of our policy checking to Fulcrum, leaving behind the manual way of doing checks which is commonplace in the industry. This means Fulcrum’s AI handles tens of thousands of policy checks annually, reducing turnaround times from up to multiple days to just 15 minutes for standard policies. That means faster delivery of accurate policies to clients and more responsive service across the board.

The shift has also led to significant cost savings, improved data quality, and faster client delivery. Because the system is integrated with Epic, there’s no risk of rekeying errors, and flagged items are easier to track and resolve. The ROI is clear, driven by reduced resourcing spend and internal efficiency gains.

With Fulcrum’s AI now powering both policy checking and proposal generation, Heffernan continues to set new standards on how AI automation can streamline operations and lead to efficiency — all with one goal in mind: giving our account managers more time to focus on delivering exceptional service to our clients.