If you’ve been putting off buying cyber insurance, now is a good time to stop procrastinating. Cyber insurance rates are presently stable, while cyber threats are growing, so this may be the ideal time to buy cyber insurance for small and medium-sized enterprises.

Cyberattacks Aren’t Letting Up

Research from Check Point shows that cyberattacks per organization surged by 47% in the first quarter of 2025. Although the education sector was hit the hardest, no industry was spared. Whether you’re in consumer goods and services, business services, transportation and logistics, real estate, or any other industry, you have cyber risks.

Small to Medium-Sized Enterprises Have Become Common Targets

If hackers are looking for a multimillion-dollar ransoms, they may focus on large enterprises with deep pockets. However, going after large corporations may also be more challenging because these companies will have invested resources in cybersecurity. In contrast, smaller businesses often have gaps in their cybersecurity practices, leaving them more vulnerable to attacks.

For example, large corporations may have a team dedicated to cybersecurity. Nationwide found that 64% of business owners don’t even have an employee or vendor in charge of detecting and combating cyberattacks – many of these are likely small and medium-sized enterprises.

Hackers may see small businesses as low hanging fruit. According to Execweb, 73% of small businesses experienced a cyberattack last year.

Costs Are Increasing

According to the Cost of a Data Breach Report 2024 from IBM, the global average cost of a data breach is $4.88 million – a 10% year-over-year increase. Businesses in the U.S. face the highest costs, where the average is $9.36 million.

Headlines often focus on large ransom demands, but that’s only one of the many costs associated with cyberattacks. Businesses also face costs from:

• Cyber forensic analyses to understand the nature and scope of the attack.
• Restoration, repair, or replacement of computer systems and files.
• Compliance with state data breach notification laws. Businesses may also need to pay for credit monitoring.
• Lost revenue due to business disruption and reputational harm for failing to keep consumer data safe.

Smaller Businesses Are Hit the Hardest

When cyberattacks succeed against smaller businesses, the impact may be brutal. Although the total cost may be lower, smaller businesses often lack the resources needed to recover from an attack. Some businesses don’t survive. According to the BBC, a 160-year-old haulage company permanently closed after a cyberattack. In another case, ZDNet says 300 workers found themselves without jobs after the telemarketing company they worked for was hit with a ransomware attack.

A report from the Royal United Services Institute for Defence and Security Studies found that cyberattacks may also be psychologically devastating for the impacted business owner and workers, leading to stress, burnout, anger, guilt, and other negative emotions. As a result, individuals may suffer physical harm, such as sleep deprivation and exhaustion. Some individuals even report feeling suicidal.

AI Is Making the Problem Worse

AI has been a double-edged sword for cybersecurity. On the positive side, some businesses are using AI to detect and fight against cyberattacks, which may greatly reduce the likelihood and impact of an attack. At the same time, hackers are using AI to carry out attacks that are more frequent and harder to avoid.

CrowdStrike says hackers are using AI to automate, accelerate, or enhance multiple phases of a cyberattack. For example, they might use AI to identify vulnerabilities and then automate the attacks. They may also use AI to create sophisticated social engineering attacks, and they can use deepfake technology to make those attacks exceptionally convincing.

According to research from SoSafe, hackers can compose phishing emails 40% faster by using generative AI, which means they can launch more phishing attacks. Even worse, Axios warns that phishing messages created with generative AI are often harder to spot since they don’t have the telltale mistakes like weird phrasing and bad grammar.

Is Your Business Protected Against Cyberattacks?

Cyber threats aren’t disappearing. In fact, thanks to AI, they’re becoming worse. You can protect your business by training your team, securing your systems, monitoring potential intrusions, and creating policies to minimize your risk. However, these measures may not be enough to stop all attacks, which is why cyber insurance is recommended. If you suffer a cyberattack, your cyber insurance will provide support to facilitate a fast recovery and offer coverage for much of the financial fallout.

Cyber insurance rates have actually been falling, making this the perfect time to review your coverage needs. Heffernan Insurance Brokers can help. Learn more.

Do you know what to do if ICE visits your workplace? As the U.S. Immigration and Customs Enforcement (ICE) agency steps up enforcement, businesses may be subject to ICE inspections. Prepare ahead of time to minimize any disruption and stress to your workers.

What Are ICE Raids?

The term “ICE raid” has been used to refer to targeted enforcement actions against people who are in the country without proper authorization or documentation. Many ICE enforcement actions have occurred in worksites where undocumented individuals are believed to work, and they are called ICE worksite inspections.

In one example of an ICE worksite inspection, ICE says it arrested 15 undocumented workers at construction sites in the New Orleans area. According to FOX Business, Home Depot stores have also become a target of immigration enforcement, and several people were recently detained in the parking lot of a Home Depot in Westlake, California.

I-9 Inspections

Employers are responsible for verifying that the individuals they employ are authorized to work in the U.S. This is done through Form I-9, the Employment Eligibility Verification form. According to the U.S. Citizenship and Immigration Services, federal law requires any employer who recruits, refers for a fee or hires an individual in the U.S. to complete Form I-9.

Employers who use the E-Verify system must retain copies of certain supporting documents, and employers who examine documents remotely must retain copies of all I-9 supporting documentation. Copies must be retained and presented with Forms I-9 during inspections. See the Handbook for Employers for more details.

According to ICE, the I-9 inspection process begins with a Notice of Inspection. The employer will then have at least three business days to produce the Forms I-9 that have been requested, along with any required supporting documentation. ICE may request various documents, such as payroll, a list of active and termination employees, articles of incorporation and business licenses.

Does ICE Need a Warrant?

Whether ICE needs a warrant depends on the situation.

ICE says that its officers do not need a judicial warrant to make arrests, just as police officers do not need a warrant to arrest an individual observed to be breaking the law in public.

However, Allen Matkins LLP says ICE officers are required to identify themselves and present proper documentation if they attempt to enter areas of a worksite that are not open to the public. If ICE comes to your workplace, you can ask them to provide their name, their badge information and a subpoena or warrant. You can also tell ICE that you are going to contact your legal counsel immediately and then do so.

What Rights Do Workers Have?

According to the American Immigration Lawyers Association, all people living in the U.S. have certain constitutional rights regardless of immigration status. Individuals have the right to remain silent and/or speak to a lawyer, and they do not need to sign anything until they have spoken to a lawyer. If a person prefers to remain silent instead of answering questions, he or she should say so.

Running away, hiding, or destroying evidence could make matters worse. ICE says that anyone who obstructs or interferes with an ICE arrest could be prosecuted under federal law. Try to stay calm.

Create a Business Response Plan

To avoid unnecessary problems, train your managers and other employees on their rights and responsibilities during an ICE inspection, and create a written plan for an ICE inspection. This way, everyone will know what they should do if ICE shows up.

Also consider how your business may be impacted in the aftermath of an ICE inspection. Workers may be stressed, and some may decide not to show up to work. Consider how likely these responses are and plan accordingly. Identify the support, such as an Employee Assistance Program, employees can use if they are having a hard time coping with the situation.

What Happens if Violations Are Discovered?

If ICE finds that a business is employing people who are not authorized to work in the U.S., both the workers and the employers could face consequences.

For undocumented workers, the biggest threat is deportation. According to ICE, individuals who are detained are put into one of three categories:

• Individuals with criminal convictions
• Individuals with pending criminal charges
• Individuals with no convictions or pending charges but who have broken immigration laws

When deportation happens, it may happen swiftly. According to The Washington Post, some of individuals who were detained in the recent Los Angeles area worksite enforcement actions have already been deported.

Employers found in violation of federal law may face:

• Civil violations
• Criminal violation
• Debarment from government contracts

Civil monetary penalties have increased due to inflation as of January 2, 2025. The civil penalty for knowingly hiring, recruiting, referral or retention of an unauthorized worker is $698 to $5,579 for the first offense, $5,579 to $13,946 for the second offense, and $8,369 to $27,894 for the third of subsequent offenses. The penalty for I-9 paperwork violations is $281 to $2,789.

Do you have questions or concerns? Heffernan Insurance Brokers is here for you. Contact us.

For many people, buying a home is symbolic of achieving the American dream. June is National Homeownership Month, making now the perfect time to celebrate the many benefits of homeownership. It’s also a good time to protect the dream of homeownership with good risk management.

The State of Homeownership

When you buy a house, you’re securing a home you can truly call your own. You’re also building wealth you can pass on to future generations.

The homeownership rate (defined as the proportion of households that are owner occupied) was 65.1% as of the first quarter of 2025, according to the Federal Reserve Bank of St. Louis.

However, buying a home has not been easy due to high housing prices, interest rates, and homeowners insurance costs. According to a 2024 report from the National Association of Realtors, the market share of first-time homebuyers dropped from 32% in 2023 to just 24% in 2024, while the average age of homebuyers increased from 49 to 56.

Preserving Homeownership

Buying a home in a big achievement. In addition to being the culmination of hard work, it’s the beginning of a journey. However, homeownership is not always easy. Regular maintenance may prevent many issues, but there’s still a risk of unexpected losses – and a standard homeowners insurance policy doesn’t cover everything.

You need to take proactive steps to protect your investment.

1. Install water detectors.

There’s a leak in your basement, but you don’t notice for several weeks. Now, you have to replace the drywall in addition to fixing the leak.

Water detectors prevent scenarios like this. You simply place the water detectors where leaks are a risk. If they detect water, you’ll receive an alert to take action to minimize the damage.

2. Harden your home against wildfires.

The Los Angeles wildfires proved that even people in suburban neighborhoods need to think about wildfire risks. Simple improvements like creating a defensible space around your home, cleaning your gutters, and installing vent covers will reduce your risk. For more details, see FEMA’s guide to protecting your property from wildfires.

3. Prevent house fires.

Wildfires aren’t the only risk. Kitchen fires and other house fires are also a danger. Keep your home safe by making sure you have functioning smoke alarms and fire extinguishers. Other important safety measures include never leaving cooking food unattended and having your chimney professionally cleaned and inspected every year. For more safety tips, see the U.S. Fire Administration tips on preventing fires.

4. Protect your home from sewer backups.

Standard homeowners insurance does NOT cover sewer backups, but you can typically add this coverage as an endorsement. In addition to securing insurance, protect your home from backups by being careful about what you flush or pour down sinks and by installing a sump pump or backwater prevention valve. For more information, see the Insurance Information Institute’s tips on preventing sewer backups.

5. Secure coverage for earthquakes and floods.

Standard homeowners insurance does NOT cover losses caused by earthquakes or floods. If you want either of these coverages, you will need to purchase separate insurance policies. For tips on strengthening your home against damage, see FEMA’s tips on preventing earthquake and flood damage.

6. Secure service line coverage.

Most homeowners don’t think about it often, but they rely on the utility and service lines that run under their property. If these lines are damaged, the property owner may be responsible for the repairs. Standard homeowners insurance doesn’t cover this, but you may be able to add an endorsement to secure coverage. To avoid accidentally causing damage – and then being on the hook for thousands of dollars in repairs – always call 811 before digging on your property. The utility companies will mark the buried lines, enabling you to steer clear of them.

7. Make sure you have enough coverage to rebuild.

If a disaster strikes, you may need to rebuild your home. To make sure you have enough insurance to cover the costs, maintain adequate limits with replacement cost coverage. Also consider whether you need building ordinance coverage. Over time, building codes change, and repairs on old structures may be subject to the new requirements. Insurance doesn’t typically cover the cost of such “upgrades” unless you have building ordinance coverage in place.

Homeowners insurance protects your investment. Don’t wait until you’re facing a claim to think about whether you have sufficient coverage. Heffernan Insurance Brokers can help you understand your coverage and secure additional coverage if you need it. Learn more.

Summer internship programs are temporary work opportunities that help students and young professionals gain practical work experience while developing valuable skills and creating professional connections. For employers, internships help support business operations and expand their talent pipeline.

Organizations that currently run a summer internship program may benefit from reviewing best practices. Those that don’t currently offer one could benefit from the value interns bring to their organization.

This article explores the benefits and challenges of summer internships and provides strategies for creating well-designed programs.

How Summer Internship Programs Work

Organizations of all sizes, ranging from large businesses to nonprofits, run annual internship programs to access young talent, bring in new ideas, build a talent pipeline, and engage with universities and colleges.

Summer internship programs are held during the summer months and can vary in length. Some programs last a few weeks, while others take place over the whole summer or even extend into the next year. While some hiring takes place for immediate openings, employers may begin recruitment in the fall for the following summer.

These programs can consist of one or two interns or an entire program or cohort. Interns may work either full time or part time. These internships can be paid hourly, salaried, a stipend or even unpaid in some situations. While all internship programs must comply with all applicable labor laws, unpaid interns often have additional or unique requirements.

Benefits of Summer Internship Programs

When done effectively, internship programs may benefit organizations in the following ways:

 Boost productivity. Interns are additional resources that can help ease employee workloads and increase organizational productivity. For businesses that have a peak in orders or demand during summer months, interns can serve as valuable seasonal employees to help get through the busy season.

 Gain fresh perspectives. Interns can bring new ideas and creative solutions to challenges your organization may be facing. They can also serve as a liaison between your organization and current best practices taught in today’s education system.

 Increase brand awareness. Many of today’s interns are digital natives with excellent social media skills. When empowered to create digital content, interns can help reach new audiences, amplify your brand and boost your online reputation.

 Develop future leaders. Managers who mentor interns can improve the leadership skills of new talent through feedback and communication.

 Expand access to talent. Internship programs can help expand access to young talent and future-proof your workforce. It’s a way to develop future talent while filling skill gaps and building loyalty. Many organizations use internship programs with the intention of hiring top performers full-time.

Challenges With Internship Programs

Despite their many advantages, internship programs can present several challenges:

Utility-based programs—Some employers create internships to fill gaps in their workforce. However, young people look for meaningful work, which means they often want roles that give them a sense of purpose. Employers who don’t provide growth opportunities or connect interns’ contributions to larger organizational goals may make them demotivated or produce low-quality results.

 Skill gaps—Interns often arrive with limited knowledge of the skills needed for a job. Without training aligned with the intern’s actual work, they might struggle with tasks, causing mistakes or delays.

 Lack of mentorship—Some programs may lack proper mentorship, which is crucial for interns who might feel confused or overwhelmed. Poor supervision may lead to frustration and disengagement, affecting the overall internship experience.

 Communication barriers—Different communication styles can pose a challenge, particularly to teams of different generations that have different preferences for receiving and giving feedback. This may lead to misunderstandings and misaligned expectations.

 High volume of candidates—Internships often attract a large number of applicants, many of whom may not be suited for the role. Screening and shortlisting can be time-consuming and resource-intensive for employers.

Careful planning and proactively addressing these challenges can make internship programs successful for both the interns and the organization.

Tips for Employers

With the substantial amount of time and resources invested in internships, employers want to build programs with a meaningful return. Consider the following strategies for creating a successful summer internship program:

 Plan ahead. Employers must carefully plan the internship experience and work towards improving the program year-round. Plan for the coming year by setting goals and objectives and evaluating available resources. During the program, gather feedback and use it to enhance the program for the next batch of interns.

 Set clear goals for interns. Discussing job responsibilities and expectations from the outset helps guide the intern experience and aligns the program with your organization’s needs.

 Conduct onboarding sessions. Proper onboarding helps interns better understand their roles and teaches them your organization’s tools and workflows. Introducing them to different departments and discussing your workplace culture can help them feel welcome.

 Encourage feedback. Employers can gain valuable insights from interns through meetings, check-ins, surveys, and other feedback mechanisms. Use this feedback to improve the program or enhance internal processes.

 Assess program results and effectiveness. Evaluate your internship program using metrics such as intern satisfaction and conversion rates. Commit to improving your program to ensure it stays relevant and effective.

Employer Takeaway

Summer internship programs can help employers attract high-quality candidates and boost organizational productivity. Employers who invest in well-structured programs may see lasting returns while creating a rewarding experience for interns.

Contact us today for more attraction and retention resources.

When an employee is injured, your property is damaged, or you are sued, it can be really stressful. These are situations you don’t deal with every day, so it can be hard to remember how to respond and what to do next. It’s a relief to know that you have an insurance expert in your corner – someone who can answer your questions and get you all the help you need. That’s exactly what you can expect from your partners at Heffernan Insurance Brokers.

Here are four ways we help you effectively navigate claim scenarios:

1. Contain and Mitigate Losses

There’s a big difference between a $5,000 claim and a $500,000 claim and much of that difference comes down to claim response and mitigation. Claims can easily escalate and become much more severe if your response is not quick and effective.

For example, if an employee is injured, an immediate assessment by a telephonic nurse can reassure the employee, get any needed medical treatment started on the right foot, and reduce the chance of litigation. Likewise, if a pipe breaks in your ceiling and water is flooding in, water mitigation response within 20 minutes instead of three hours could save you thousands. Time is of the essence, and every action counts. We can help you determine the best next steps.

2. Advocate on Ongoing Claims and Litigation

If claims are complex and ongoing, resolution can get bogged down without dedicated attention and proactive next steps. Your claims adjuster may be pulled in many directions, dealing with 100 or more different claims, and you’re busy running your business.

Heffernan can act as an advocate between you and your insurance carrier. Our team members are former claims adjusters so we know the process, and we’ve managed a lot of claims so we know the common milestones and pitfalls. We have strong relationships with most carriers and can collaborate with your claims adjuster to keep your claims moving forward.

Likewise, if you are involved in claim litigation, we will help you navigate next steps and assess potential settlements and defense strategies, along with your carrier’s claim team and defense attorney.

3. Monitor Reserve Accuracy

A claim reserve is the budget that your claims adjuster assigns to a claim. It represents the total estimated cost that is expected to be incurred. Reserves are typically set within the first few days of the claim, when not many details are known. Each time the claims adjuster reassesses the claim, they should also update the reserve to ensure it accurately reflects the current scenario because the estimated cost can change dramatically over time.

For example, the adjuster might set a reserve that contemplates a back surgery, only to find out later that surgery won’t be needed, or vice versa.

Reserves for all your open claims within a certain line of insurance are summarized in a document known as your Loss Run. The Loss Run shows total open reserves, along with a multi-year paid claim history, and is a big factor in determining your next year’s insurance rates.

Needless to say, it’s important to ensure that your reserves and your Loss Run stay accurate. You don’t want to pay a higher premium based on an overly-inflated case reserve. Your Heffernan team can regularly review your reserves, suggest any needed changes to your claims adjuster, and keep you apprised of any notable developments, so you know what to expect at your coming policy renewal.

4. Provide Risk Management Resources

No one wants to repeat their mistakes and that is certainly true in claims. If you’ve experienced a certain type of workplace injury, or property/liability claim, we can help you prevent that type of loss from happening again with targeted loss prevention resources.

Proactive risk management is the one thing you can do to prevent and contain claims and influence your premium costs. Good preventative measures will also help position your account as an attractive risk for underwriters.

If you’re concerned about a certain exposure, ask us for resources. We’re happy to help.

Does Your Broker Provide Claims Advocacy?

Do you have an insurance partner in your corner? Heffernan Insurance Brokers provides comprehensive risk management services and claims advocacy. We help businesses of all sizes and have specialty programs designed to help businesses in specific industries secure the coverage and risk management resources they need. Learn more.

You probably volunteer on the board of a nonprofit because you believe in the cause and want to make a difference, but that doesn’t absolve you from liability. Directors and officers (D&O) insurance for nonprofits protects board members and the organizations they serve from the financial impact of a lawsuit.

What Is D&O Insurance for Nonprofit Board Members?

D&O lawsuits are not just a problem for publicly traded for-profit companies—private companies and even nonprofit organizations may also face lawsuits.

Various stakeholders—including investors, donors, employees, customers, vendors, regulators, and competitors—may file lawsuits accusing an organization of mismanagement. Lawsuits frequently name both the organization itself and the individual officers or board members responsible for running it. These individuals may be held personally liable.

In the event of a D&O lawsuit, your D&O insurance policy will cover legal costs associated with your defense, as well as judgments or settlements, under the terms of the policy. Without this protection, many nonprofits do not have the financial reserves necessary to survive a major lawsuit or indemnify their board members.

Nonprofit Board Members Take on Personal Risk

Some nonprofit board members underestimate their risk. Although nonprofits exist to support a cause, the stakes are still high. In the fourth quarter of 2024, nonprofits held a total value of nearly $14 trillion, according to FRED.

The board members tasked with carrying out the nonprofit’s vision may be held accountable when things go wrong.

For example, NPQ says the directors of a nonprofit nursing home were found personally liable for breaching their duty of care for failing to remove the organization’s CFO and administrator once it became apparent that they were mismanaging the organization. The U.S. Court of Appeals for the Third Circuit upheld a $2.25 million jury verdict against the directors.

In another case, CBS News says a lawsuit has been filed against the Foodbank of Southern California, its CEOs, and 12 board members, accusing them of misusing state and federal funds for their own gain.

Risks May Be Rising

D&O lawsuits may stem from many different types of accusations, such as mismanagement, breach of duty, misleading statements, self-dealing, or misuse of funds. The risk of a lawsuit always exists, but it may be higher right now due to legislative, economic, and social issues.

Key trends include:

• The debate over DEI puts organizations in a no-win situation. Many organizations are stepping away from their DEI initiatives amid a changing political climate and the risk of anti-DEI lawsuits. Forbes has even created a list of major companies that are cutting DEI. However, as Zeff Law Firm warns, cutting DEI programs creates new legal risks.
• Data breaches and cyberattacks are a growing risk. Board members may face liability for failing to implement appropriate cybersecurity measures or for mishandling a cyber incident.
• Cuts to federal grants have had a significant impact on many nonprofits. Many nonprofits already operate on tight budgets. When funding is threatened, though, their financial situation may become especially tense. Missteps are more likely to lead to catastrophic failures. This means disputes may be more likely, which could contribute to more lawsuits.

Protecting Your Board and Your Vision

Nonprofit organizations provide valuable services, and their board members make this possible. Unfortunately, lawsuits could put nonprofit organizations in jeopardy and expose their boards to personal liability.

Board members can reduce their risk by complying with regulations, following the organization’s bylaws, and acting in the best interest of the organization and its stakeholders. However, there are still risks, even when you act prudently. Disputes may arise over mistakes or actions with unintended consequences. There’s also a risk of accusations that turn out to be unfounded but nevertheless result in costly legal expenses. D&O insurance provides important protection.

This is a good time to review your D&O insurance.

• Are the limits sufficient? If your nonprofit has grown, your exposures may have grown as well, meaning you might want to consider higher limits.
• Do your board members have adequate coverage? D&O insurance provides three “sides” of coverage. Side A covers the directors and officers when the company cannot indemnify them. Side B covers the company through reimbursement when the company can indemnify the directors and officers. Side C covers the company when it is named in a lawsuit.
• Do you need other types of coverage? In addition to D&O insurance, your nonprofit may need employment practices liability insurance, cyber insurance, and other types of coverage.

Do you need help navigating D&O insurance for nonprofit boards? Heffernan Insurance Brokers serves more than 4,000 nonprofit clients. We can help you secure the coverage you need to protect your organization, your board members, and your mission. Learn more.

Is compliance verification slipping through the cracks at your company? The average company has numerous contracts with multiple vendors and service providers. These contracts frequently require proof of insurance, licenses, and other types of documentation. Ideally, you should review the required documents on a regular basis to confirm continued compliance and to manage third-party risk, but companies rarely do this in a consistent and thorough manner.

Heffernan Compliance Management can help you control third-party risk once and for all without draining precious company resources or damaging vendor relationships.

Compliance Protects Both Parties

Strong business relationships require trust, but companies still need to perform due diligence.

Contracts that clearly stipulate each party’s requirements and responsibilities prevent disputes and protect both sides. Often, you must submit proof of both insurance and licensing as part of the agreement.

Unfortunately, the continuing verification of compliance often falls by the wayside. If one party lets its insurance lapse, reduces its limits, or removes the partner as an additional insured, the other party may not notice the issue until there’s a problem, and, at that point, it could be too late to do anything about it.

Non-compliance doesn’t necessarily stem from malice. A company might forget to review documents for compliance or fail to enforce insurance requirements. When neither side is reviewing contractual agreements, there’s a huge potential for non-compliance, especially in long-term partnerships that span multiple years or even decades.

Heffernan has developed a solution: the Compliance Management team uses an intuitive system that aids in automating insurance and compliance tracking. It sends document requests and makes it easy for your vendors to upload the requested documents. Then, the system automatically extracts information from different document types such as a Certificate of Insurance (COI), W9, Licenses, and more to verify that the company is compliant with the agreed contractual terms. If it’s not, the team works within the system to send out a new request to address the issue.

Stay on Top of Expirations

Tracking documentation is challenging because different pieces of documentation expire at various times throughout the year. One vendor might have a license that expires in March, an insurance policy that expires in June, and another policy that expires in October. The more vendors you have, the more difficult it becomes to keep up with everything.

Heffernan Compliance Management solves this problem with automatic expiration reminders. This means you never have to worry about missing an expiration date again.

Follow Up Automatically

Let’s say you have a vendor who needs to provide you with a new certificate of insurance. The vendor has promised to deliver it by the end of the week. Friday comes and goes without you receiving the document. Now, it’s Monday, and you’re debating what to do. As you need the certificate of insurance, you know you should ask for it again, but you don’t want to be annoying. You trust that the vendor has it and has simply been busy.

This is one way verification may fall through the cracks.

Heffernan Compliance Management solves this problem through automated follow-ups. You don’t have to worry about keeping track of who sent what or reaching out for the second, third, or fourth time because the built-in automation handles everything for you.

Preserve Relationships

There’s another reason compliance verification often falls by the wayside: people don’t want to risk damaging vendor relationships by nagging their vendors about documents.

While this is somewhat understandable, it ignores the bigger risk: if a problem arises and it then comes out that the vendor failed to maintain its obligations, the relationship will quickly become strained. Asking for a new certificate of insurance is a lot better than having to go to court to determine who’s liable after a loss.

Nevertheless, many people just don’t feel comfortable asking for documents repeatedly. Heffernan Compliance Management solves this problem by handling the documentation requests. You’re no longer in the position of having the ask for documents – it becomes something that happens automatically. And if you’re worried that the emails will sound “robotic”, take a deep breath because the Compliance Management team works with each company to build custom emails, so you still sound like you.

Make Things Easy for You and Your Vendors

Compliance verification is a hassle, but Heffernan Compliance Management makes it easy for everyone. It’s easy for you because you don’t have to worry about tracking expiration dates or following up for documentation. It’s easy for your vendors because they don’t have to sign up for anything to receive the requests.

As part of Heffernan Insurance Broker’s dedication to helping companies manage their risks, we offer Compliance Management services. Contact Sarah Wavers to learn more.

What does financial security mean to you? Having a steady source of income is great – but what if you lose your earning power? The future is unpredictable, which is why income protection should be at the heart of every financial plan. May is Disability Insurance Awareness Month, and it’s the perfect time to think about the role that disability insurance plays in your long-term financial plan.  

The Foundation of Financial Security 

Unless you’re retired with ample savings or independently wealthy with a trust fund, you probably depend on a steady stream of income to stay financially healthy.  

Both small businesses and individuals should have enough liquid funds to cover about three to six months of expenses. If you’re running a small business, this is your cash reserve. If you’re an individual, it’s your emergency fund.  

In reality, business owners and individuals both tend to fall short of this – sometimes by a great deal. According to JP Morgan Chase, small businesses have an average cash buffer of 27 days, meaning they would only be able to pay cash outflows for 27 days before their cash balance ran out if they had no more cash coming in. That’s the average – 25% of businesses have fewer than 13 cash buffer days. 

Individuals are in a similar situation. According to U.S. News, 42% of Americans don’t have an emergency fund. Among those who do, the average fund is only $10,000. A Bankrate survey found that 69% of people would be worried about covering their immediate living expenses over the next month if they lost their primary source of income tomorrow. 

Unfortunately, income may dry up quickly for a number of reasons. Some are unexpected, like the COVID-19 pandemic that shuttered businesses and sparked layoffs. Natural disasters are another threat. And then there’s the risk of disability.  

Cancer, heart disease, injuries, and other disabilities may force people to stop working. For individuals and families, this may quickly lead to financial ruin. For small business owners, it may also jeopardize the business.  

Your Financial Situation Can Change in the Blink of an Eye 

No matter how great things seem now, your life could be turned upside down in the blink of an eye. To understand how precarious financial stability can be, consider the following cautionary tale. 

Kaylee owns a successful bakery. She’s also a single mom of a 13-year-old daughter and a homeowner. Her business has great reviews – she can barely keep up with the demand. She hires some help, but it’s her own cake-decorating skills that truly make the shop a success. 

One morning while walking into work, with her arms full of supplies, Kaylee tripped on a step. Her thoracic spine was fractured requiring immediate surgery and she suffered a terrible concussion. For months following the incident, she couldn’t work, and her bakery had to significantly cut back on production.  

Her bakery ran through its cash reserves, leaving her without enough for her employees’ salaries and her lease. Her personal finances quickly diminished as well. Between the lost revenue and medical bills, she ran through her emergency savings faster than she expected. 

Have You Insured Your Most Important Asset? 

Earning power is the greatest asset you have, making all other assets, including your home, vehicles and retirement savings possible. Without income, most people’s financial plans become a house of cards. 

Many people think that their risk of disability is low – especially those who work in white collar jobs. In reality, the risk is high – particularly because many disabilities are cause by medical conditions like cancer, heart disease or stroke. 

The Social Security Administration says one in four 20-year-olds will experience disability before reaching retirement age. Disability takes many forms and can affect anyone. 

Disability insurance provides protection. 

• Individual disability insurance provides protection for your personal finances. If you can’t work due to a disability, your individual disability insurance will provide a monthly disability benefit to replace part of your lost income. You can use this money however you need, whether that’s paying your mortgage or funding quality time with your family. 

• Business overhead expense insurance provides protection for small businesses. If the business owner experiences a disability, the policy will provide a benefit to cover many common overhead expenses, such as employee salaries, payroll taxes, and rent.  

Work-Based Disability Coverage May Not Be Enough 

If you’re self-employed or run your own business, you know you need to provide your own benefits – and that should include disability insurance. But if you work as a traditional employee, you likely count on your job for benefits, and you may receive group long-term disability insurance through work. This coverage can provide some help during an emergency but be warned – it may not provide enough protection. There are two factors to consider: 

• Take home benefit amount: Group LTD benefits are typically capped at a maximum, and if the company pays the premium, benefits are likely taxable. Group benefit caps are often set too low to protect high earners. Take a look at your policy to see what the monthly maximum benefit is. Then ask yourself – could you get by on that amount after taxes?  

• Portability: Group LTD benefits are tied to your job. If you switch jobs, you typically lose coverage. Securing new coverage may be more difficult if you’re older or have developed any health issues. Conversely, individual income protection plans are portable, so they follow wherever your job may lead. Also, if you pay the premiums, your benefits are typically not taxable. 

Individual disability insurance provides more robust, portable coverage, and that’s especially important for high earners. If you have group long-term disability insurance through work, you can add a supplemental individual disability insurance policy to ensure you have maximum protection. 

Is Your Financial Plan Complete? 

Did you know that Heffernan Insurance Brokers also provides financial services?  In addition to helping you secure the income protection insurance you need to protect your assets and safeguard your financial future, we can assist with retirement plan consulting and wealth management. Learn more.   

Widespread adoption of self-driving technology may be just around the corner. Whether you’re looking forward to a more relaxing morning commute or dreading the day you hand over your keys to a machine, here’s a look at what’s new in autonomous vehicles.

Public opinion is low.

Before self-driving technology can take over our roads, people need to accept it.

According to a survey from AAA, 66% of U.S. drivers are fearful of self-driving cars, while another 25% are uncertain about the technology. Although people are interested in semi-autonomous technology like reverse automatic emergency braking, recent incidents involving autonomous vehicles have left the majority of people feeling uneasy about handing over complete control to a machine.

However, the tide could be turning, at least according to an article from TechCrunch. Self-driving cars were on display in Las Vegas for CES 2025, with Waymo and multiple startups showing off autonomous vehicles, and people seemed excited about the technology. Meanwhile, Reason reports that Waymo has expanded its operations in multiple cities and now provides 100,000 driverless rides a week.

High-profile accidents add to concerns.

Self-driving cars have already been involved in a number of accidents. According to KWTX, a driver says his Tesla was in self-driving mode when it hit a parked police vehicle, while CBS News says federal regulators are looking into a fatal crash that may have involved a Tesla using its full self-driving system.

Of course, human-driven vehicles are involved in crashes every day, a point Waymo is trying to make with its Safety Impact webpage. According to Waymo’s analysis, a comparison between Waymo vehicles and human drivers in three cities shows that Waymo had 83% fewer crashes involving airbag deployment, 81% fewer injury crashes and 64% fewer police-reported crashes.

Remote-controlled cars are no longer just toys.

When you think of remote-controlled cars, you probably think of the toys you used to play with as a child. These days, however, remote-controlled cars aren’t just for kids. They’re a real form of transportation, and an alternative to true autonomous technology.

According to For Construction Pros, construction equipment that’s controlled remotely has the potential to increase safety and has been gaining acceptance. Meanwhile, according to The Truth About Cars, Ford Pro is working on features that would let fleet managers control maximum speed, acceleration, locks and ignition remotely.

Jalopnik reports that Phantom Auto has been able to test its remote-controlled vehicles in California without having to get a permit.  Because the cars do have a driver – albeit one who’s not in the car – the state’s self-driving regulations don’t apply.

Legislation has a bumpy road.

As more and more companies test self-driving technology on public roads, many people are calling for clear legislation. According to the National Conference of State Legislatures, 29 states and Washington D.C. have enacted legislation governing self-driving technology. In 41 states, autonomous vehicle legislation has been considered.

At the federal level, the U.S. Department of Transportation has developed the Automated Vehicles Comprehensive Plan as part of its initiative to prioritize safety.

Need insurance for your “regular” car? The Heffernan personal insurance division can outfit you with cutting edge protection for your car, home, boat and other recreational equipment. Is it time for a coverage review? Contact us!

The economy has its ups and downs, but, with good planning, your financial situation doesn’t have to suffer. Recent market turmoil has many business owners and individuals worried about their financial security. Now is the time for proactive steps to maintain financial wellness.

Don’t Let Panic Guide Your Investment Decisions

When stock prices plummet, investors become understandably nervous. No one likes to see their portfolio values tumble. However, it’s important to think carefully before making any decisions you might come to regret.

It’s impossible to predict what the market will do next, but history should provide some comfort. Morningstar says the stock market has crashed – meaning the market dropped by at least 20% – 19 times over the last 150 years or so. In every instance, the market has recovered and gone on to reach new heights.

This means that, if you don’t need your funds in the near future, you might like to sit tight and wait out a market crash. You might even consider making additional investments to take advantage of the low prices or to diversify your portfolio. On the other hand, you may decide you want to sell certain investments or rethink your current investment strategy. Just make sure you’re doing so with a financial strategy in mind to avoid giving in to panic.

Prepare for the Worst

The economy will improve eventually, but things could become worse before they get better. A CNBC survey found that 60% of CFOs think a recession will occur in 2025. The following steps will help you prepare:

• Bolster your emergency savings. An economic downturn tends to bring layoffs and reduced spending, hurting both workers and business owners. This is a good time to ensure you have enough savings to get through an unexpected financial hardship. Individuals and families should consider whether they have sufficient emergency savings. Small businesses may likewise benefit from increased cash reserves, in case revenues drop.
• Cut costs where possible. Both individuals and business owners should consider tightening their budgets. For individuals and families, this may involve cutting back on luxuries. For business owners, it involves focusing on marketing activities with the best ROI or negotiating lower costs for rent and supplies.
• Make sure your money is safe. Bank failures are rare, but they are possible. The FDIC says one bank failure occurred in January 2025, two in 2024, and five in 2023. The FDIC insures deposits, but keep in mind that the insured amount is limited to $250,000 per depositor, per insured bank, per ownership category.

Protect Your Assets with an Insurance Strategy

If you’re hit with a personal hardship in the midst of an economic downturn, recovery may be extra challenging. The right insurance strategy will help you protect your assets.

In addition to the personal insurance staples like homeowners, car, life, and health insurance, you may want to consider additional coverage types. For example, if you have a dog or cat, pet insurance could help you manage unexpected veterinary care.

Insurance policies are also critical for small business owners. A ransomware attack that shuts down your operations, a natural disaster that forces you to evacuate, or a lawsuit alleging that your company caused harm would be bad under the best conditions. When revenue is down, though, any of these scenarios could be catastrophic. Consider whether you have enough coverage to guard against lawsuits, cyberattacks, and other unforeseen losses.

Work with a Financial Planner

The above is not investment advice. If you want financial and investment advice – a smart idea any time but especially during periods of economic uncertainty – work with a financial planner.

A financial planner can assess your financial situation and portfolio to provide you with investment advice and asset protection strategies that cater to your specific needs.

Did you know that Heffernan Insurance Brokers offers financial services? As we are an independent firm and fiduciary, you can count on us for objective guidance that puts your best interests first. We offer portfolio review and management, asset protection strategies, estate and financial planning, investment advice, insurance planning, and more. Our experts can help you navigate market turmoil and economic uncertainty with confidence. Learn more.

Want to beat the odds as a small business owner? While many small businesses fail, a good insurance strategy may shield you from financial catastrophe. Make sure you’re protected by taking out the most essential insurance policies for small businesses.

Commercial General Liability Insurance

Commercial general liability insurance is a staple of business insurance – and for good reason. It provides coverage for third-party bodily injury and property damage claims. Whether you’re a shop owner who’s worried about a customer falling on your premises or a contractor worried about accidentally damaging a client’s property while performing work, this is an essential insurance policy to own.

Commercial general liability insurance also provides coverage for third-party personal and advertising claims. For example, if you run an advertisement for your business and someone claims that an image in it infringes on their copyright or that the wording amounts to defamation against your competitors, your general liability insurance policy could cover you. Other important coverage includes false arrest and wrongful eviction.

Commercial Property Insurance

If you have a physical location, you’ll benefit from commercial property insurance, no matter whether you own or lease. In fact, your mortgage or lease agreement may require you to maintain this coverage.

Commercial property insurance covers the building as well as the business assets inside, such as your inventory, equipment, furniture, and supplies. A standard commercial property insurance policy covers many common loss events, including fire, wind, hail, and vandalism. However, policies typically exclude some perils, including floods, earthquakes, and mud flows, meaning you may want to consider purchasing additional coverage. Policies also exclude damage from wear and tear.

Business Interruption Insurance

Many small businesses have limited cash reserves and therefore depend on steady cash flow. If a natural disaster forces you to shut your doors for days, weeks, or even months, you might be unable to recover. Business interruption insurance helps by making up for lost income during a covered event. Business interruption insurance is typically tied to commercial property insurance and usually provides coverage for the same perils.

Commercial Auto Insurance

If your business owns any vehicles, you need commercial auto insurance.

When commercial vehicles are involved in crashes, costly lawsuits and massive jury awards are common – and small businesses are not immune to this risk. For example, Daily Local News says a bicyclist was awarded $29 million after a plumbing company truck collided with him and caused him severe injuries.

To shield yourself from this risk, consider whether your liability limits are high enough. You can increase your limits on all underlying liability policies – including commercial auto insurance – by buying umbrella liability insurance.

Also consider whether you need hired and non-owned auto insurance. If you have employees who use their personal vehicles for business purposes, hired and non-owned auto insurance will provide liability protection for your business in the case you are named in a lawsuit. The car owner still needs to maintain personal auto insurance, but this coverage does not protect your business.

Workers’ Compensation Insurance

State law requires most employers to maintain workers’ compensation insurance. If you have employees, this is likely non-negotiable. Workers’ compensation provides vital protection for employees who experience work-related injuries or illnesses and protects employers from lawsuits over work-related injuries and illnesses.

Other Insurance Products to Consider

Depending on the nature of your business, you may need additional insurance policies. Some common policy types to consider include:

• Cyber insurance – Provides coverage for cyberattacks and data breaches. Hackers target businesses of all sizes. A cyber event may be particularly devastating for small businesses.
• Professional liability insurance – Also called errors and omissions insurance, this covers lawsuits alleging financial loss stemming from errors, omissions, or negligence in your professional services.
• Employment practices liability insurance – Provides coverage for lawsuits alleging wrongful employment decisions, discrimination, and harassment. If you have employees, employment practices liability insurance will provide you with valuable coverage.
• Employee benefits – Helps small businesses achieve their recruitment and retention goals while promoting employee engagement and wellbeing.

Is your small business protected? Heffernan Insurance Brokers provides tailor-made insurance packages for small businesses. We’ll work with you to review your coverage needs and create an insurance package that protects your assets. We can also help you explore cost-saving strategies, such as using a business owner’s policy to bundle coverages. Learn more.

Insurance for food and beverage companies should be as unique as the risks these companies face. Does your insurance adequately cover your risks? Ask the following seven questions to make sure.

1. Do you have coverage for recall risks?

Recalls are a constant threat in the food and beverage industry. According to the U.S. PIRG Education Fund, there were 296 food recall announcements in the U.S. in 2024 – a decrease of 5% compared to 2023. However, there were multiple high-profile recalls, including the Boar’s Head meat and the McDonald’s Quarter Pounder recalls. Furthermore, serious illnesses resulting in hospitalization or death from contaminated food nearly doubled, with recalls due to salmonella, listeria and E. coli up by 41%.

Food recalls are often expensive due to the lost product and retrieval and disposal costs, not to mention the potential damage to a company’s reputation. Product liability insurance covers lawsuits arising from contaminated or mislabeled food, but it does not cover recall costs. For this reason, product recall insurance is an important coverage for any food and beverage company.

2. Do you have coverage for cargo theft?

Verisk CargoNet says cargo theft reached a record high in 2024, with food and beverage shipments as the most frequently-targeted type of commodity. With the risk rising, having sufficient motor truck cargo insurance is critical.

3. Do you have coverage for cyber and fraud risks?

Food manufacturers and distributors are vulnerable to cyberattacks, social engineering, and other types of fraud. A ransomware attack could shut down operations, leading to massive business interruption costs and putting food at risk of spoilage. Other attacks could target funds or even food shipments. The FBI has warned that criminals have used business email compromise tactics to divert large shipments of food. To guard against these risks, food and beverage companies need cyber and crime policies with sufficient coverage for cyberattacks as well as for social engineering scams and fraud.

4. Would you survive a nuclear verdict?

Oversized jury verdicts (often called nuclear verdicts) are on the rise. According to the U.S. Chamber of Commerce, nuclear verdicts increased in frequency between 2013 and 2022 (if you exclude the pandemic years, when many courts closed temporarily). Although any jury verdict of at least $10 million is a nuclear verdict, the median nuclear verdict during this period was more than double that: at $21 million. Product liability accounted for 23.3% of nuclear verdicts, while auto accidents accounted for 23.2%, making this a major concern for companies involved in food manufacturing and distribution. Umbrella liability insurance provides an extra layer of protection.

5. Do you have coverage for supply chain disruption?

Before food makes it to the table, it typically goes through a number of steps involving multiple companies. Something that goes wrong on the other side of the country or even the world – whether it’s a natural disaster, cyberattack, outbreak of bird flu, or something else – may impact your operations. Contingent business interruption that provides coverage for third-party disruptions will protect your bottom line.

6. Do you have coverage for equipment breakdown risks?

Food and beverage manufacturers tend to rely heavily on expensive equipment. If that equipment stops working, you’ll face costly business disruption losses on top of expensive repair or replacement costs. To prevent financial disaster, it’s important to have sufficient coverage for your equipment. Review your commercial property insurance to make sure you have adequate coverage for your equipment in the case of a fire, storm, or other covered loss. However, it’s important you understand that this will not provide protection against equipment breakdown – for that, you need equipment breakdown insurance, sometimes called boiler and machinery insurance. Also consider whether you have coverage for damage caused by cyber events.

7. Has an expert in food and beverage insurance reviewed your insurance coverage?

Each business is unique. A broker who understands the food and beverage industry can help you understand your risks to ensure you secure appropriate coverage.

Heffernan Insurance Brokers provides customized insurance for food and beverage companies, including growers, packers, manufacturers, and distributors. We will help you find the coverage you need – from motor truck cargo and warehouse legal liability insurance to pollution legal liability and product contamination and brand rehabilitation coverage. Learn more.

It’s a difficult time for nonprofit organizations. With insurance challenges, economic pressures, and regulatory upheaval, many feel threatened. Some may be looking to cut costs wherever possible, including by reducing their nonprofit insurance. At the same time, risk management is more important than ever, so it’s important to consider your options carefully before proceeding.

Federal Funding Is Under Threat

On January 20, 2025, an executive order established the Department of Government Efficiency, commonly known as DOGE. As of April 1, DOGE says it has saved $140 billion (or $569.57 per taxpayer) by making cuts to numerous agencies and programs. Grants have also been on chopping block – so far, it has terminated at least 7,616 grants, including grants made through the Department of Education, USAID, and the Department of State.

Attempts to end federal funding have been met with strong opposition. On January 27, an executive order aimed to pause federal grants, loans, and other financial assistance. According to the National Conference of State Legislatures, this was rescinded on January 29. Then, on February 10, Judge John McConnell of the U.S. District Court for the District of Rhode Island issued an order to unfreeze funds.

While the political and legal battles rage , many nonprofit organizations are left in limbo. The Urban Institute says two out of three nonprofits receive at least one government grant or contract. Nonprofit Quarterly says the threat to federal funding has nonprofit executives trying to figure out how to deal with what could be a massive crisis. According to CalMatters, the executive director of the County Welfare Directors Association says local agencies are worried that cuts could impact job assistance, in-home supportive services, foster care, and adult protective services programs.

Economic Uncertainty Could Make Conditions Worse

The threats to funding come at a particularly bad time. According to a report from the U.S. Department of Housing and Urban Development, homelessness reached record levels in 2024. The Center on Budget and Policy Priorities says food insecurity increased from 12.8% in 2022 to 13.5% in 2023, marking the second consecutive year of rising rates and a reverse of the two-decade trend of falling rates.

The situation could become worse. Expana forecasts a global recession starting in the spring of 2025, while U.S. News says there’s a 27% chance of a U.S. recession sometime in the next 12 months, based on the New York Fed’s recession probability model.

When the economy suffers, nonprofits are hit with a double whammy of increased demand for services and decreased donations. Indeed, the 2024 Giving USA report found that donations from individuals decreased by 2.4% in 2023, when adjusted for inflation. The drop is attributed to uncertain economic conditions and high inflation. If the economy worsens amid drastic federal funding cuts, the situation could become much worse than usual.

Obtaining Insurance Coverage Is Becoming More Challenging

According to the Council of Insurance Agents & Brokers, the fourth quarter of 2024 marked the 29^th consecutive quarter of rising commercial property and casualty insurance rates. However, many lines – including D&O, cyber, and EPLI – are now seeing rate decreases.

The challenges facing the nonprofit sector go beyond the general insurance market. For some nonprofits – particularly foster care agencies – securing insurance coverage has become extremely challenging. New legislation (including statute of limitations reform and California’s Foster Agency Accountability Act) has had a significant impact on the market. Costs have been rising, with some markets also experiencing shrinking coverage capacity.

Navigating Insurance Amid Financial Uncertainty

Many nonprofit leaders are in crisis mode. They’re busy examining their funding options and determining where they can cut costs to survive the years ahead. They may see insurance as a place for cuts, especially as premiums rise and coverage becomes harder to find. However, it’s important to keep in mind why insurance premiums are rising: losses have also been rising. Wildfires and other natural disasters have led to massive property damage, while litigation trends that include social inflation, nuclear verdicts, and legal reform have resulted in increased liability risks. Cutting insurance may save you a little money in the short term but leave you vulnerable to catastrophic costs in the future. For many nonprofits, it’s also important to stay compliant with state requirements for insurance coverage.

This is not to say that cuts are impossible – in some cases, nonprofits may be able to thoughtfully manage their coverage choices to save money. Strategies include taking on bigger deductibles or self-insured retentions.

During times of crisis and uncertainty, risk management is more important than ever. An experienced insurance partner can figure out what you can cut and what is essential coverage.

A broker who understands the current market for nonprofit insurance can guide you through your options when insurance difficult to find to avoid coverage gaps. See how Heffernan Insurance Brokers can help.

The current labor shortage and increased awareness of sexual harassment are causing the construction industry to take a new look at how it recruits and retains women in the workforce.

The Construction Skilled Labor Shortage

After falling during the COVID-19 pandemic, construction spending is up again. The American Institute of Architects says the construction spending on nonresidential projects increase by 20% in 2023, followed by smaller gains, while the National Association of Home Builders says all geographic regions saw single-family construction growth at the end of 2024.

But there is a downside to all this growth: a shortage of skilled labor. As experienced workers reach retirement age, the construction industry is scrambling to find enough skilled workers to meet growing demands.

Women could be a largely untapped source of new workers. According to the U.S. Bureau of Labor Statistics, only 11.2% of construction workers are women. Construction companies struggling to find new employees should assess what they’re doing to attract women.

Safety Issues

The Occupational Safety and Health Administration (OSHA) has been working with the National Association of Women in Construction (NAWIC) to facilitate a safe work environment and to understand the rights of workers and the responsibilities of their employers.

This is important because women sometimes face additional hazards in the workplace. According to For Construction Pros, personal protective equipment selection, sanitation, and workplace intimidation and violence are key concerns.

Personal protective equipment designed for men may not fit women properly, and this can represent a serious safety hazard. OSHA has addressed this with a new final rule that explicitly requires personal protective equipment to fit properly. This rule is expected to improve safety for women as well as other workers who tend to have a hard time finding equipment that fits properly, such as larger workers.

Sexual Discrimination

Providing a safe and healthy work environment also means providing a workplace that is free from sexual discrimination. This includes creating hiring and pay policies that do not discriminate against women.

It’s also important to create a workplace that does not allow sexual harassment. As the #MeToo movement and the downfall of men like Harvey Weinstein have shown, women are taking a stand against workplace harassment. Although much attention has been given to Hollywood, other industries – including construction – should also take note.

Construction firms that are accused of sexual harassment or sex-based discrimination could face costly lawsuits. In one example, the EEOC says Balfour Beatty Infrastructure, a highway construction company, had to pay $80,000 to settle a lawsuit alleging sexual harassment and discrimination.

To avoid legal, morale and reputational damage, employers should do the following:

• Create and enforce a written policy that defines and prohibits sexual harassment.
• Create a procedure for reporting sexual harassment.
• Respond promptly and thoroughly to complaints of sexual harassment and take appropriate action against offenders.
• Never retaliate against employees for reporting sexual harassment or respond to complaints dismissively.
• Provide sexual harassment training, especially to supervisors, after an incident or as required by state law.

As always, Heffernan Insurance is your partner in construction insurance and risk management. Contact us with any questions you may have.

The National Safety Council designates April as Distracted Driving Awareness Month. This annual campaign is intended to raise awareness about the dangers of distracted driving and encourage drivers to minimize potential distractions behind the wheel.

Distracted driving contributes to nearly 400,000 injuries and 3,000 fatalities each year, according to the National Highway Traffic Safety Administration.

Distracted Driving Overview

The Centers for Disease Control and Prevention defines distracted driving as any activity that may divert a motorist’s attention from the road. There are three main types of distractions that can interfere with drivers’ attentiveness:

1. Visual distractions involve motorists taking their eyes off the road. Some examples include reading emails or text messages, looking at maps or navigation systems, and observing nearby accidents or roadside attractions while
2. Manual distractions entail motorists removing their hands from the steering wheel. Key examples include texting, adjusting the radio, programming navigation systems, eating, drinking and performing personal grooming tasks while
3. Cognitive distractions stem from motorists taking their minds off Primary examples include talking on the phone, conversing with vehicle passengers and daydreaming while driving.

Regardless of distraction type, distracted driving is a serious safety hazard that causes a significant number of accidents on the road. As such, it’s crucial to take steps to prevent distracted driving.

Prevention Measures

During this annual event and beyond, it’s imperative for businesses to educate their employees about distracted driving hazards and related prevention measures. Specifically, businesses should share the following guidance with their drivers:

Put phones away. Drivers should silence their phones and store them out of reach to avoid checking them behind the wheel.

Plan every trip. Before hitting the road, drivers should program their navigation systems and familiarize themselves with their journeys.

Utilize in-vehicle technology. Drivers should leverage any technology within company vehicles that promotes safe driving, including hands-free communication devices, voice-activated controls and telematics solutions.

Avoid multitasking. While driving, it’s best for drivers to refrain from completing additional tasks, such as eating or adjusting the radio.

Stay focused. By keeping distracting conversations to a minimum and looking straight ahead, drivers can fully concentrate on the road.

Maintain compliance. Drivers should comply with all company policies and applicable laws regarding distracted driving. Contact us today for additional risk management resources.

Both commercial and personal auto insurance rates have been climbing for some time now – but why? Insurance rate trends are largely driven by claims trends. Recent auto claims trends have been characterized by growing risks and rising costs.

Claims Severity and Frequency Have Surged

LexisNexis reports that auto claims have increased in terms of both frequency and severity since the COVID-19 pandemic. Bodily injury severity is up by 20% and material damage severity is up by 47%, while total loss claims have increased by 29%.

It’s impossible to point to a single reason for the surge. However, multiple factors appear to be contributing to the problem, including reckless driving, repair costs, and litigation.

Reckless Driving Is Up

Blame it on stress; boredom; or the temptation of nearly empty roads. Regardless of the reason, reckless driving surged during the COVID-19 pandemic. We are still feeling the impact today.

A study by IIHS on Virginia drivers found that speeding by at least 10 mph increased by more than 50% between March and June 2020. This could explain why traffic fatalities increased by 7% in 2020 even though the number of miles driven plummeted. NHTSA data shows that the biggest increases in fatal crashes involved speeding or alcohol and unbelted vehicle occupants.

The pandemic has ended, but many people think reckless driving habits have become more common. In a survey from Pew Research Center, 49% of respondents said people are driving more dangerously than they did before the pandemic, compared to only 9% of respondents who said they’re driving more safely.

Distracted driving is also a problem, especially among young drivers. According to LexisNexis, distracted driving violations among Gen Z drivers have increased by 24% compared to 2022 and by 66% compared to 2019. However, this is not just a Gen Z problem – across all ages, distracted driving increased by 10% from 2022 to 2023.

Repairs Are Slower and More Expensive

Another pandemic-related change has contributed to higher auto claims: repairs have started to take longer and cost more. Faced with labor shortages and supply chain disruption during the pandemic, many auto repair shops developed long backlogs. The J.D. Power 2023 U.S. Auto Claims Satisfaction Study found that auto insurance repair times nearly doubled between 2021 and 2023, reaching 23.1 days. In 2024, J.D. Power says repair times improved somewhat, averaging 18.9 days. However, that’s still noticeably longer than the repair times before the pandemic.

Longer repair times may lead to larger claims costs. The longer the claim drags on, the greater the administrative costs. Insurers may also incur additional costs due to rental coverage.

On top of these challenges, auto insurance claims costs are rising due to the changing nature of vehicles. As vehicles adopt more sophisticated technology, repairs become more costly. A car bumper loaded with sensors and cameras may help you avoid a crash, but, if you crash, that bumper will be expensive to repair. Even minor crashes may necessitate costly repairs and realignments.

The rise of electric vehicles is also a factor. According to Kelley Blue Book, electric vehicles cost 30% more to repair than gas-powered vehicles.

Litigation Is Adding to the Problem

Social inflation and nuclear verdicts have been leading to huge jury verdicts against transportation companies. Research from the Insurance Information Institute found that the inflationary total of $21 billion in auto insurance claims between 2014 and 2019 is due to social inflation. Some jury awards – such as a $141.5 million nuclear verdict against a small Florida trucking company (as reported by FreightWaves) – are astounding.

However, social inflation isn’t just an issue for commercial auto insurance. In a study from the Insurance Research Council, 89% of people recalled seeing attorney advertising in the past year and 52% of people thought attorney advertising increased the cost of insurance.

What Should Drivers Do?

The increase in claims costs is hard on insurers, but the resulting increase in insurance rates is hard on drivers and business owners. However, there are steps that you can take:

• Embrace cameras. Businesses should use dashcams and in-cab cameras to promote safe driving and ensure drivers who are not at fault are exonerated after a crash. Individual drivers may also like to invest in dashcams – if someone tries to stage a crash, a dashcam may be the only proof you have.
• Consider telematics. Businesses should use telematics to identify risky driving habits and improve operational efficiency. Individual drivers may also benefit from telematics and usage-based insurance programs, especially if they’re safe, low-mileage drivers.
• Drive safely. The most important thing to do to keep claims and costs down is to be a safe driver. Don’t speed, don’t drive under the influence, make sure everyone in the vehicle is using a seatbelt, and give the road your full attention. Encourage your family members and your colleagues to adopt safe driving habits.

Are you looking for personal or commercial auto insurance? Heffernan Insurance Brokers can help. Contact us.