Did you know that February is Heart Health Month? All the hearts you see for Valentine’s Day serve as a good reminder to think about your actual heart. This time of year, many people are in new health plans, so it’s also a good time to review the plan benefits that can support heart health.

A Death Every 34 Seconds

The CDC says that heart disease is the leading cause of death for men and women. In 2019, more than 900,000 people died of cardiovascular disease in 2023 in the United States, accounting for one out of every three deaths. A person dies an average of every 34 seconds from heart disease.

Heart disease is also expensive. The CDC says heart disease was responsible for costs totaling around $418.9 billion from 2020 to 2021. This includes healthcare services, medicines and lost productivity due to death.

What Is Heart Disease?

Heart disease is also known as heart and blood vessel disease or cardiovascular disease. According to the American Heart Association, it includes several health problems, many of which involve a build-up of plaque in the walls of the arteries, a condition known as atherosclerosis, which can cause a heart attack or stroke.

Some people have a higher risk of heart disease. For example, the CDC says people with diabetes have twice the risk of developing heart disease, and the longer you have diabetes, the greater your risks. However, you can take steps to reduce your risk.

How to Reduce the Risk of Heart Disease

Whether or not you have an elevated risk of developing heart disease, you can reduce your risk through lifestyle changes and healthy habits.

• Exercise regularly. The CDC says adults need at least 150 minutes of moderate-intensity exercise a week, plus two days of muscle-strengthening activity.
• Get a good night’s sleep. According to the National Institute of Health, experts recommend seven to nine hours of sleep a night for adults.
• Quit smoking. Smoking increases your risk of heart disease significantly, so quitting is one of the best things you can do for your health.
• Limit your alcohol consumption. Alcohol also increases your risk of heart disease, so drinking in moderation (or not at all) can reduce your risk.
• Eat heart-healthy foods. The National Institute of Health recommends eating fruits, vegetables, whole grains, fat-free or low-fat dairy, protein-rich foods, and oils and foods high in monosaturated and polyunsaturated fats. Limit salt, saturated fat, added sugars and alcohol.
• Maintain a healthy weight. You can use the CDC’s BMI Calculator to see if your weight is considered healthy.
• Some stress is normal, but chronic or excessive stress can contribute to your heart disease risk and make it harder to stay healthy.

Using Your Health Benefits to Protect Your Heart

Your health plan may include benefits that can help you stay heart-healthy. Some common benefits include:

• Smoking Cessation Programs. Quitting smoking can be hard, but treatments and programs can increase your chance of success, and your health plan may cover the costs.
• If excessive stress is interfering with your health, counseling may help. Check your health plan for coverage.
• Sleep Treatments. If you’re unable to get a good night’s sleep, it may be because of sleep apnea or other health problems. Talk to your doctor and check your health plan for coverage.
• Diabetes Screening. The CDC says 98 million Americans have prediabetes, putting them at a greater risk of developing diabetes and heart disease, but most of them don’t know it. Knowing you have prediabetes can empower you to make changes to lower your risk, so screening is important, and most health plans cover it.
• Heart Disease Screening. Your doctor may recommend blood pressure tests, cholesterol tests, and other tests to determine your risk and whether you need to take medication or make lifestyle changes to lower your risk. Check your health plan for details, but most plans cover preventive screenings.
• Your doctor may recommend certain medications to manage your risks and improve your heart health. Check your health plan for coverage.

Every year, thousands of people die of heart disease, but most of these deaths can be prevented. This February, take steps to protect your heart, and spread the word to help others do the same.

Does your health insurance provide the benefits you need to protect your health? Heffernan Insurance Brokers can help you with Medicare and Employee Benefits.

Do you have the insurance you need to protect you from losses? Contractors take on big risks, and without adequate coverage, common disruptions can derail business. Take a moment to review your contractor insurance coverage to ensure you have the right policies to protect your business in 2026.

General Liability Insurance

General liability insurance covers third-party claims involving bodily injury or property damage occurring on your business premises or resulting from your operations. Standard policies also provide coverage for personal and advertising injury claims.

Why do contractors need general liability insurance? Construction sites can be dangerous places, and not all incidents involve workers. For example, someone walking by your operations could be injured by debris. Commercial general liability insurance is a staple of insurance coverage for contractors, and it’s often required by state licensing boards and project managers.

Contractors Professional Liability Insurance

Contractors professional liability insurance (CPL), also known as errors and omissions insurance, is distinct from general liability insurance. It covers claims alleging financial loss stemming from negligent or substandard professional services.

Why do contractors need professional liability insurance? Problems with construction design can lead to major financial losses, making CPL insurance critical for contractors that provide design services. For example, a flaw in design could delay the business opening of a commercial client, leading to lost revenue.

Commercial Auto Insurance

Commercial auto insurance can provide coverage for your vehicles as well as third-party claims involving bodily injury or property damage. A hired and non-owned endorsement adds business liability coverage for when workers use personal or rented vehicles for work.

Why do contractors need commercial auto insurance? A collision can disrupt operation in two ways – first by damaging the vehicle you depend on for work, and second by exposing your company to liability. Whether you’re using vehicles owned by your company, personally owned by workers, or rented, you need adequate commercial auto insurance.

Inland Marine Insurance

Inland marine insurance provides coverage for property while in transit or in off-site storage. It typically provides coverage for many common losses, including fire, storm, theft and vandalism, and can protect your equipment and supplies.

Why do contractors need inland marine insurance? Contractors frequently haul expensive supplies and equipment to different sites. Your commercial auto insurance covers your vehicle, but it doesn’t cover the items you’re transporting.

Workers’ Compensation Insurance

Workers’ compensation provides coverage for work-related injuries and illnesses, including compensation for missed work and medical care. It works on a no-fault basis, meaning workers do not need to sue their employers or prove fault in order to file a claim. As such, it protects the worker by ensuring that compensation is available, and it protects the employer by preventing costly legal battles.

Why do contractors need workers’ compensation insurance? Workers’ compensation is vital in any industry, but it’s especially important in construction, which is a high-risk sector known for a significant injury rate. States typically require workers’ comp for most employers, and there may be special requirements for contractors. For example, California requires contractors to carry workers’ comp coverage whether or not they have employees.

What Else Do You Need?

In addition to the core insurance policies every contractor needs, you may require additional policies. It depends on your business – what you do, who you work with, and where you operate.

Common policies for contractors include:

• Pollution Liability Insurance: Standard general liability insurance excludes pollution or environmental claims, so pollution liability coverage is critical for contractors. It can be added as an endorsement, but you may prefer to secure standalone coverage.
• Builders Risk Insurance: Written on inland marine insurance forms, builders risk insurance is designed to cover property during construction and renovations. It’s essential for projects, but it’s often purchased by the property owner.
• Umbrella Insurance: A series of claims or a single severe claim can wipe out your coverage limits and leave you responsible for the difference. Umbrella insurance bolsters the coverage offered by your underlying policies to provide you with superior protection.
• Cyber Insurance: As contractors become more reliant on computer systems, cyber insurance is becoming increasingly important. If a cyberattack could shut down your operations, or if you hold sensitive data, consider adding cyber insurance to your contractors insurance package.

Contractor Insurance 2026 Review

Contractors insurance is one of the more complicated types of commercial coverage. A broker who specializes in the needs of contractors can help you review your coverage for 2026.

• Do you have the right policy types? In addition to the core policies listed here, you may need other policy types or endorsements.
• Is your coverage structured optimally? It’s important to make sure your insurance is structured optimally to provide robust coverage at the best price possible.
• Is everyone covered? When working with vendors and subcontractors, careful attention must be paid to the contracts and insurance terms.

Heffernan Insurance Brokers offers construction insurance and risk management program for contractors. Learn more.

Mergers and acquisitions represent opportunity, momentum and transformation. They are also milestones involving accelerated risk and increased scrutiny. By understanding and insuring against the risks, you can protect your company, its leadership and your deal value.

M&A Trends

Merger and acquisition activity is increasing. According to Reuters, research from the Boston Consulting Group shows that deal volume hit $1.938 trillion between January and September 2025, a 10% year-over-year increase. This shows that despite some uncertainty regarding U.S. tariff policies and geopolitical conflicts, deal activity is strong.

Much of the activity occurred in the third quarter of 2025, when Deloitte says the U.S. M&A market experienced a dramatic turn. The value of deals rose by 56%. Heading in 2026, Deloitte calls for deal making optimism in light of these figures.

For the individual businesses navigating deals, mergers and acquisitions represent an exciting opportunity to supercharge growth. However, a deal can also be a perilous time, with a heightened risk for litigation from investors, employees, competitors and other parties.

D&O Risks

Merger and acquisition activity is often associated with D&O risks, and for good reason. Statements and disclosures are subject to close scrutiny, and allegations of misrepresentation or breach of fiduciary duty are common. Although the risks are fairly well known for public companies, private companies can also face D&O exposures during dealmaking.

Insurance Considerations: Prior to a merger or acquisition, talk to your broker to discuss your D&O insurance needs. It’s important to secure coverage that protects activity leading up to the deal as well as actions that take place after the deal. Consider how the common change in control provision affects your coverage and whether you have adequate tail coverage.

Employee Risks

Joining two companies is a little like joining two families – although the union is exciting, conflict is common, and people don’t always get along. The two workplace cultures may clash, and this may lead to allegations of a hostile work environment, resulting in lawsuits. When employees are made redundant, wrongful termination lawsuits are also possible.

Insurance Considerations: Employee practices liability insurance provides important coverage for lawsuits alleging discrimination, harassment, wrongful termination and other similar employment-related claims. Prior to a merger or acquisition, review your coverage. Also consider whether you need to increase your limits. A larger company has more employees and a greater risk of litigation as a result.

Compliance and Regulatory Risks

Prior to a merger or acquisition, companies may face antitrust challenges. However, the regulatory scrutiny does not end there.

After a merger or acquisition, a myriad of compliance-related issues may emerge. You may have locations and employees in new states, resulting in new state laws that your company needs to navigate. You may uncover regulatory issues with the company you’ve joined, for example, with regard to employee benefits administration. The bigger a company is, the more complex regulatory compliance can become.

Insurance Considerations: Prior to a merger or acquisition, discuss your risks with your broker and determine whether your coverage is sufficient. In addition to D&O insurance, you may need employment practices liability insurance and fiduciary liability insurance, as well as coverage for exposures such as intellectual property claims.

Cyber Risks

There are two key issues to consider when looking at cyber risks after a merger or acquisition: the technology platform and the culture. To minimize cyber risks, you need both a secure technology platform and a culture that prioritizes cybersecurity. Otherwise, data breaches, successful phishing attempts, ransomware, and wire fraud are all very real threats. If the company you’ve joined doesn’t follow best practices, your data – and your reputation – could be in jeopardy.

Insurance Considerations: Cyber insurance has become more and more important as the line between technology and essential operations blurs. A merger or acquisition is a good time to review your cyber policy. Coverage terms vary, so pay attention to any limits, exclusions or restrictions in your coverage. Also consider how the merger process will impact your coverage and whether you’ll have sufficient protection throughout.

Merger and Acquisition Insurance Needs

While there could be countless other insurance implications depending on the details of your deal, these four implications are common to most deals. Regular insurance reviews can help your coverage keep up with your exposures. If your company is growing, and especially if you’re headed toward a merger or acquisition, it’s a good time to check your coverage. Heffernan Insurance Brokers can help you review your coverage and create an insurance program customized to your needs. Learn more.

As we enter the new year, nonprofit leaders face an environment of rapid change and rising complexity. Tight budgets, emerging funding sources, evolving AI regulations and mounting litigation will influence the risk landscape. Is your organization prepared to navigate with confidence? Let’s dive into the four key nonprofit risk trends to watch in the year ahead. 

Trend #1: Tight Operating Budgets  

Increased demand for nonprofit services combined with funding pressures may result in tightening budgets. 

Inflation and job losses have put pressure on families. According to the Bureau of Labor Statistics, unemployment climbed to 4.6% in November 2025. At the same time, changes in political policy could leave many people without the benefits they depend on. When the government shutdown threatened SNAP benefits in November, ABC News says food banks saw a surge in demand, and demand remained higher even after benefits were restored. Stricter SNAP requirements and expiring ACA subsidies could lead to even higher demand for nonprofit services going forward. 

Unfortunately, economic uncertainty can also prevent people from making donations. According to an AP-NORC poll conducted in early December, only 18% of people say they have already donated and plan to do so again before the end of the year, while 30% say they have not donated and do not plan to do so. 

Tight budgets can put strain on nonprofits, which many have to cut corners, reduce services or make do with a smaller staff, resulting in greater risk. For example, delayed repairs could put a nonprofit at risk for property damage, while a smaller staff could increase the risk of mistakes.  

Trend #2: Bitcoin Donations 

Many nonprofits will be happy to accept donations in any form. However, the rise of cryptocurrency donations can create complications. 

According to The Giving Block, global cryptocurrency donations have reached $2 billion in the five years leading up to 2024, with substantial growth in 2024. 

By accepting bitcoin and other cryptocurrency donations, nonprofits can tap into this trend, and they may receive funds that donors aren’t willing to give in any other way. At the same time, market volatility means these donations could rise or fall in value quickly, making it difficult to budget and causing accounting challenges. Other risks can involve proper storage of funds and the threat of losing access to cryptocurrency wallets.  

#3: AI and Cyber Risks 

AI has made it easier for scammers to carry out social engineering and cyberattacks. For instance, scammers can use AI to craft convincing phishing messages or to search for vulnerabilities and launch attacks.  

For nonprofits, the risk is twofold. First, nonprofit organizations may be targeted by cybercriminals attempting to divert funds, steal data or infect files with ransomware. In one example from last year, scammers use deepfake video to target a nonprofit in Oregon, posing as an artist’s son who wanted to sell some of his father’s paintings and donate the proceeds, according to KGW8. Thankfully, the nonprofit wasn’t fooled, but as AI becomes more convincing, these types of scams may be harder to spot. 

Second, cybercriminals may pose as nonprofits in order to trick people into donating funds, reducing the amount of money going to legitimate nonprofits and eroding donor trust. KOAA News reports that crisis charity scams spiked in the aftermath of the Los Angeles wildfires, and AI has made it easier for bad actors to create sophisticated scams. 

Trend #4: Evolving Liability Risk 

Carrier Management says technology and social changes are leading to a growing risk of employment discrimination claims. For example, the growing use of AI in hiring can lead to inadvertent discrimination, while remote work policies can trigger discrimination claims. Nonprofits also face litigation risks tied to statute of limitations reform and allegation of funds mismanagement. 

Amid all of these risks, social inflation and nuclear verdicts are increasing the potential losses. In one example, Proskauer says a California jury awarded more than $11 million to a woman who accused her employer, a plasma donation center, of illegally discriminating against her by failing to accommodate her back pain and then terminating her. To cover their risks, nonprofits need sufficient liability insurance, but securing coverage is sometimes challenging due to reduced capacity and surging rates, especially for abuse liability coverage. 

Is Your Nonprofit’s Risk Management Keeping Up? 

As you navigate these nonprofit risk trends, count on Heffernan Insurance Brokers for mission-minded nonprofit insurance. Our nonprofit insurance program provides coverage that’s designed for the needs of nonprofit organizations, so you can stay focused on your mission while managing your risks. Learn more. 

If you’ve been waiting for the perfect time to get serious about financial goal setting, your wait is over. January is Financial Wellness Month, and the fact that it coincides with the New Year makes it the ideal time to embrace a fresh start and focus on working toward your financial goals.

Are You Achieving Financial Wellness?

Financial wellness isn’t just about having a good income. It’s about developing the habits and knowledge to achieve your financial goals in both the short term and the long term.

According to PYMNTS research, 67% of Americans say they live paycheck to paycheck. That’s two out of every three Americans – and it’s not just low-income workers. A rising number of high-income earners, defined as those earning at least $100,000 a year, report living paycheck to paycheck, while 25% of lower-income individuals say they do not live paycheck to paycheck.

Regardless of how much you earn, if you spend more than you bring in, you’ll go broke eventually. As proof, consider the fate of many lottery winners. According to USA Today, data from the Certified Financial Planner Board of Standards reveals that nearly one in three lottery winners eventually declare bankruptcy, a higher rate than what’s seen among the general American population.

What’s Standing in the Way of You and Your Financial Goals?

Although many people share similar financial worries, everyone’s financial situation is different.

• You haven’t set your priorities. Have you ever sat down to add up all money you spend on things like coffee and streaming services over the course of a year? Once you crunch the numbers, you may find that little things add up to a substantial chunk of your discretionary income. Often, these items aren’t truly a person’s financial priority, but because they haven’t actually written out their priorities and created a matching budget, it’s where they end up spending their money.
• Your budget isn’t realistic. If you find yourself spending more than your budget every month, the problem might not be that you lack financial discipline. Instead, the issue may be that your budget is unrealistic. Maybe it was based on costs five years ago, and inflation means you can no longer stick to those amounts, or maybe you forgot to include key categories of spending, like pet food or out-of-pocket medical and dental care.
• You haven’t planned for emergencies. You may be sticking to a regular monthly budget most of the time, but what happens when your dog needs an emergency trip to the vet, your car breaks down, or your washing machine needs to be replaced? Over the period of a year, it’s reasonable to expect some emergencies to arise, and if you’re not prepared financially through savings, insurance and warranties, normal emergencies can derail your financial plan.
• You lack the expertise needed to make the right financial moves. A lack of financial knowledge can stand between you and your financial goals. Without a thorough understanding of financial concepts, and without an expert to guide you through your decisions, you could end up leaving money on the table.

Are You Financially Literate?

Financial literacy refers to having the financial knowledge and skills to manage money effectively while saving, budgeting, investing and paying off debt.

According to the World Economic Forum, many U.S. adults lack financial literacy. When asked a five-question quiz designed to test basic financial knowledge, only 26% could get four or five questions right, while 24% only got one or no questions right.

Another quiz, called The Big Three, uses three simple questions to test financial literacy. You can take the quiz at the Stanford University Initiative for Financial Decision-Making website. If you miss a question, don’t feel bad – only 28% of American adults are able to answer all three questions correctly. Most Americans have a lot to learn when it comes to finances.

Starting the New Year Right

The new year is a perfect time to shed bad habits, work toward new goals, and brush up on your financial education. Whether you’re just starting out in your career, buying a home and raising a family, or getting ready to retire, financial knowledge can empower you to reach your financial goals.

Embarking on a financial education is easier when you have a knowledgeable advisor in your corner. The Heffernan Financial team, a division of Heffernan Insurance Brokers, offers financial education and empowerment for people in all stages of life. Learn more.

When faced with the choice between investing in insurance now or gambling on the potential for a loss down the road, some business owners choose to roll the dice. Unfortunately, this strategy can backfire in a big way.

How Businesses Become Underinsured

Insurance is a fundamental part of risk management. If a business experiences an unexpected loss, such as the destruction of property or a lawsuit, insurance coverage can help the business recover – but only if you have sufficient coverage in place. By the time you’re dealing with a loss, it’s too late to secure more coverage.

Businesses may find themselves underinsured for a few reasons:

• They don’t have necessary policies. Many small businesses have property, commercial auto and general liability coverage, but what about employment practices liability and cyber insurance? If you’re hit with an employee lawsuit or a ransomware attack, your property, auto and general liability won’t help.
• Their policy terms don’t match their risks. Generic commercial insurance is designed to meet the needs of most businesses, but it may fail to sufficiently protect against the risks inherent to your industry. For example, wire fraud has been a problem in the real estate sector. A real estate agency might secure cyber insurance thinking it will protect against this risk, but some cyber policies don’t offer much, or any, coverage for wire fraud. If you don’t know what’s in your policy, you may not have the coverage you expect. If possible, try to obtain coverage that’s tailored for your industry.
• Their limits may not be keeping up with their needs. As property values, construction costs and jury awards rise, insurance policy limits need to keep up. As your business grows, hires more employees, invests in more equipment, and engages in bigger contracts, you will also need to increase your policy limits.

Penny Wise But Pound Foolish

Being underinsured can cost you. It’s like the old phrase “penny wise but pound foolish.” The small amount of money you save now is nothing compared to the losses you could incur.

Claims are often more costly than businesses expect. For example, a fire doesn’t just cause property damage. It also causes business disruption and lost revenue, and the longer it takes for a business to recover, the harder it will be to win customers back. Property insurance can cover building restoration and the cost of lost inventory and equipment. It can also cover lost revenue from business interruption, facilitating a faster financial recovery.

Cyberattacks are another prime example of common losses that come with hidden costs. A ransomware attack against your company could hold your files hostage unless you pay a ransom. If you depend on your computer systems for daily operations, your entire business could be forced to shut down. You may also be looking at added costs from data breach notification requirements and lawsuits over data privacy violations. If you have cyber insurance, you not only have coverage to help with these exposures, but you also receive expert guidance to help you navigate an unsettling and high stakes situation.

What About Federal Assistance?

A government report on Federal Disaster Assistance for Businesses states that businesses often seek government assistance following a disaster to help with things like payroll, cashflow and other needs and expenses. However, businesses are typically expected to use their own resources or insurance to recover, and federal assistance is only supplemental in nature.

When businesses do not have the resources or insurance needed, they may not survive. According to the report, the Federal Alliance for Safe Homes says that 40% of businesses do not reopen after a disaster, and another 25% close a year after the disaster, while the Small Business Association says that 90% of businesses fail within two years of a disaster.

Could You Survive a Disaster?

If you had to close your business to deal with a fire, storm or cyberattack, would you be able to open your doors again? The answer often comes down whether or not you have the right insurance.

• Are your limits high enough to cover the cost to rebuild? Low limits or high deductibles could leave you with major out-of-pocket costs.
• Do you have business interruption coverage to make up for lost revenue? Without this coverage, businesses may find themselves in a hole they can never dig out of.
• Do you have coverage gaps? Gaps can come from not having policies or endorsements you need, or from have policies with exclusions, restrictions and sub-limits that leave you exposed.
• Will you have the support you need during the recovery process? Insurance can do more than just pay for repairs and replacements. For example, a cyber insurer may provide support during a cyberattack to help you mitigate the damage.

Having the insurance you need when you need it may determine whether or not your business survives. Heffernan Insurance Brokers can help you assess you coverage needs and secure policies that fit your business. Learn more.

Insurance shouldn’t feel like a full-time job, but for many business owners, it requires an extensive amount of time. If you’re juggling multiple policies, insurance providers, and renewal dates, it can be challenging to get through all the fine print.

A well-coordinated strategy can make all the difference. With one partner managing all your policies – from business and cyber to disability, life, and health insurance – you can finally be sure that your policies fit together without costly overlaps or scary coverage gaps.

How a Hodgepodge of Coverage Can Go Wrong

Most people aren’t insurance experts. When they try to buy their insurance piecemeal, they may end up with coverage gaps because they don’t understand the exclusions and limits in the fine print of each policy. Often, they don’t realize they have coverage gaps until they’re faced with a loss that isn’t covered, and by then, it’s too late to seek coverage.

Consider:

• Larry has auto and home insurance, so he assumes he’s covered for any losses. Then someone breaks into his car and steals some electronic equipment he had in the back. He reports the loss to his car insurance company, but it’s rejected because car insurance doesn’t cover personal belongings. Then he reports the loss to his homeowners policy, and it’s covered, but his sub-limits aren’t sufficient to cover the full value.
• Carla has a small photography business that she operates out of her home, with a studio where she takes portraits. She has homeowners insurance with liability coverage, and she buys event insurance when she’s booked for weddings, so she thinks she’s covered. Then a client slips and falls at her house, and she finds out her homeowners insurance won’t cover the incident because her policy excludes business activities.
• Henry owns a bakery. He does most of the baking himself, but he has a couple of employees to help him. He knows his bakery would fall apart without him, so he purchases business overhead expense insurance. When he has a heart attack and has to step back from work for a while, his policy covers his business overhead costs, including his employees’ salaries – but it doesn’t cover his own salary. Now he’s facing personal debt, and he realizes he needed a disability insurance policy on top of the business overhead expense policy.

Making Insurance Simple and Affordable

Beyond coverage gaps, disjointed insurance programs can also result in unnecessary expenses and hassles.

Many insurance policies can be bundled. Individuals often bundle home and auto, and they may also be able to bundle other policies, such as personal umbrella or boat insurance. Businesses often bundle essential coverage types with a business owners policy, and they may be able to add coverage with endorsements rather than paying for additional stand-alone policies.

Bundling can be advantageous because it often results in a discount. Bundled policies can also help policyholders avoid coverage overlaps that cause them to pay twice for the same coverage. In the event of a loss, bundled policies can also make things easier because you don’t have to try to figure out which policy is responsible for the claim.

However, a bundled policy isn’t always the best strategy. Sometimes, a particular risk drives up the cost of the policy, and combining it with other risks can make everything more expensive. Carving out the risk in a separate policy may be the most affordable strategy.

There’s a lot to consider, and the stakes are high.

Putting the Puzzle Pieces Together

Think of your insurance as a puzzle. There are a lot of different pieces, and you want all of them to fit together perfectly to form a complete picture. You don’t want missing pieces that leave you with coverage gaps, mishappen pieces that don’t fit with the rest of the pieces, or extra pieces that have no place in the puzzle.

A holistic insurance partner can help you put your insurance pieces together to form a comprehensive picture. Does your insurance advisor …

• Handle all lines of coverage? Most people need multiple policies that may span multiple lines. A broker who offers personal, commercial, health, and life products can help you with all your needs and provide a cohesive insurance program without gaps or overlaps.
• Take time to understand your risks? You may not know which types of insurance you need. Your broker should be a source of expertise and guidance. Since everyone’s situation is unique, this is only possible if your broker takes time to understand your needs.
• Specialize in your industry? The most competitive business insurance packages are often only available to agencies that specialize in a given niche.
• Advocate for you? It’s helpful to have someone in your corner, especially when you’re dealing with a loss. Your insurance broker should be your partner, and they should have the industry clout needed to help you navigate underwriting challenges.

Heffernan Insurance Brokers offers personal insurance, business insurance, health insurance, and financial services. Our expert advisors will collaborate to bring in the expertise you need and align coverage, ensuring you have a comprehensive insurance program tailored to your specific needs. Contact us.

Real estate investing can be lucrative, but as a general rule, the more money is involved, the greater the risks. Having adequate real estate insurance in place can help you avoid losses and protect your gain, but real estate investors often miss common coverage gaps.

Coverage Gap #1: Renovation Risks

A completed property faces vastly different exposures than a property undergoing construction.

During the initial construction process, builder’s risk insurance provides coverage for damages to the property. Although real estate investors may be aware of the need for this coverage, they do not realize that builder’s risk insurance is also important during major renovations.

What should real estate investors do? If you’re relying on standard property insurance during renovations, you may have coverage gaps that could lead to uncovered losses. Don’t take the risk. Ahead of renovations, talk to your broker about your insurance needs.

Coverage Gap #2: Water Losses

Standard property insurance covers certain types of water losses, such as a roof leak caused by a storm or a sudden burst pipe. However, other types of water losses are excluded from standard coverage. If you’re relying on standard property insurance, you likely don’t have coverage for floods or sewer backup damage, and both of these events can lead to major losses.

What should real estate investors do? Although standard property insurance does not cover floods or sewer backup losses, you can secure coverage for these perils. For flood coverage, you need a stand-alone flood insurance policy. Keep in mind that flooding is possible anywhere, so even if you’re in a lower-risk area, you could benefit from coverage. For sewer backup coverage, you can typically add a sewer backup and sump overflow endorsement to your property insurance policy.

Coverage Gap #3: Income Disruption

When your income stops, you don’t get a break from expenses like property taxes and maintenance costs. Income disruption can stem from many issues, from natural disasters that leave properties uninhabitable to tenants who don’t pay the rent they owe. Real estate investors can plan for some income disruption and set aside reserves to provide breathing room, but securing insurance is also a smart move.

What should real estate investors do? Business interruption insurance can make up for lost income after certain covered events, such as storms or fires. Landlords may also want to look into rent guarantee insurance, which provides coverage for losses caused by tenants who don’t pay rent.

Coverage Gap #4: Nuclear Verdicts

Liability coverage protects you from lawsuits – but what if a jury verdict exceeds your limits? Jumbo-sized jury verdicts, known as nuclear verdicts, have been on the rise, and they can leave businesses exposed to uncovered losses.

What should real estate investors do? The liability limits that seemed sufficient in the past may no longer be adequate in the face of rising litigation costs. It’s a good time to reassess the limits on your various liability insurance policies and consider increasing them. You can also add a commercial umbrella liability insurance policy to provide another layer of protection on top of your underlying insurance policies.

Coverage Gap #5: Cyberattacks

The real estate industry is an attractive target for cybercriminals and scammers, who are drawn to financial data and high-value deals. Real estate investors may become victims of ransomware and other cyberattacks. Social engineering scams, including phishing, business email compromise and wire fraud, are also common. General liability insurance often excludes cyber losses, which can lead to coverage gaps.

What should real estate investors do? Stand-alone cyber insurance can help give real estate investors the protection they need for modern cybersecurity risks. If you don’t already have coverage, seriously consider obtaining it. Because social engineering and wire fraud are major problems in real estate, make sure your policy provides adequate coverage for these exposures.

Coverage Gap #6: Generative AI Exposures

As businesses adopt generative AI, they’re seeing new generative AI exposures. At the same time, insurers are introducing generative AI exclusions. As a result, you may not have coverage for a lawsuit stemming from your use of generative AI.  AI-related lawsuits have already been filed for unfair price coordination among landlords, tenant screening discrimination and for use of false information in AI-generated listings.

What should real estate investors do? If you’re implementing generative AI in your workflows, conduct a risk assessment and insurance review. Also watch out for new AI exclusions in your various insurance policies, and talk to your insurance broker about your coverage options.

Are You Overlooking Any Real Estate Insurance Coverage Gaps?

Heffernan Insurance Brokers provides custom insurance programs for the real estate industry. We can help you review your coverage needs and make sure you have the real estate insurance you need. Learn more.

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.