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

Why Medicare Enrollees Should Pay Extra Attention This Year

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

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

Will Your Medicare Plan Change Next Year?

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

Possible changes could impact your:

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

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

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

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

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

Make the Most out of Your Medicare Enrollment Period

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

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

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

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

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

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

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

The Crisis

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

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

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

The new laws: what changes, and why they matter

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

1. AB 226 — Bonding capacity for catastrophic events

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

2. AB 234 — Legislative oversight and transparency

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

3. SB 525 — Equity for manufactured housing

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

4. AB 290 — Modernization for payments

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

5. AB 1 — Incentivizing wildfire risk reduction

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

The potential impacts, benefits, and caveats

Stabilization, not a cure-all

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

More oversight, More accountability

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

Fairness in Coverage

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

Encouraging Fire Risk Mitigation

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

What Policyholders and Brokers should watch

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

A tentative path forward in a volatile landscape

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

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

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

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

Mistake #1: Not Reading Your Annual Notice of Change

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

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

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

Mistake #2: Not Comparing Plan Options

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

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

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

Mistake #3: Only Focusing on the Premium

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

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

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

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

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

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

Mistake #5: Not Seeking Expert Guidance

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

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

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

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

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

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

1. Passwords should be strong and unique.

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

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

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

2. Multifactor authentication is important, too.

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

CISA recommends enabling multifactor authentication for each account or app.

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

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

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

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

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

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

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

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

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

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

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

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

6. Keep your software and website up to date.

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

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

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

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

What Is Third-Party Litigation Funding?

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

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

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

Social Inflation and Nuclear Verdicts

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

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

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

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

The Push for Legal Reform

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

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

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

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

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

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

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

What Is Hybrid Learning?

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

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

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

The Risks and Insurance Implications of Hybrid Learning

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

Here are four risks to watch.

1. Cyberattacks

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

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

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

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

2. Online Bullying

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

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

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

3. Student Success

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

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

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

4. Tech Devices

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

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

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

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

1. Elopement

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

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

2. Pressure Injuries

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

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

3. Abuse

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

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

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

4. Negligence

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

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

5. Worker Injuries

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

Managing Your Risks

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

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

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

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

Commercial Property Insurance

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

Personal Property Insurance

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

Crop Insurance

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

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

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

Business Interruption Insurance

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

Auto Insurance

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

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

Equipment Breakdown Insurance

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

General Liability Insurance

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

Pollution Insurance

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

Workers’ Compensation

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

Employment Practices Liability Insurance

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

Does Your Agricultural Business Have Sufficient Coverage?

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

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

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

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

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

What Is Medicare?

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

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

Medicare: A Program in Four Parts

The four parts of Medicare have distinct coverage and costs.

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

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

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

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

What About Medigap?

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

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

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

Understanding Your Options

To summarize, you have two basic options.

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

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

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

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

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

Life Insurance Perceptions: Surprising Data

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

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

Overcoming Barriers to Coverage

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

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

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

The Advantages of Buying Coverage Young

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

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

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

Finding Coverage That Meets Your Needs

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

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

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

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

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

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

Who Needs Contractor’s Liability Insurance?

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

Is Contractor’s Liability Insurance Required?

Contractor’s liability insurance may be required.

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

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

Key Coverages for Contractors

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

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

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

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

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

Contractor Bonds

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

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

Other Construction Coverages to Consider

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

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

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

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

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

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

The Challenge with Policy Checking

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

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

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

Deploying Agentic AI for End-to-End Policy Checking

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

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

The Results

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

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

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

When technology fails, businesses may lose millions. As an IT professional, you know that your clients depend on your services for critical business operations. If anything goes wrong, you could face a major lawsuit. Without technology errors and omissions insurance for IT professionals, you may face those lawsuits on your own.

Lessons from the CrowdStrike Outage

If you work in the IT sector, you’re probably familiar with the CrowdStrike outage. Even if you DON’T work in IT, you likely heard about it – it was that disruptive.

TechTarget says it might have been the largest IT outage in history. It happened on July 19, 2024, when a faulty software update caused clients around the world to be hit with the Windows system blue screen of death. Operations came to a halt in many businesses while CrowdStrike scrambled to correct the problem.

Delta Air Lines was among the impacted clients. According to Reuters, the airline had to cancel 7,000 flights due to the outage, resulting in lost revenue of $550 million. This kicked off a legal battle. In May, a judge ruled that Delta could move forward with a lawsuit against CrowdStrike accusing the IT company of gross negligence in pushing a defective update.

This sort of disaster is every IT professional’s worst nightmare. One small mistake may be enough to trigger major losses for your clients. Even if clients are unlikely to have a billion dollars like Delta did, the stakes may be incredibly high – and that may trigger massive lawsuits.

The Role of Technology Errors and Omissions Insurance

Technology errors and omissions (E&O) insurance provides coverage for IT companies facing lawsuits over professional services that resulted in financial losses for clients.

Coverage will depend on your policy terms, but common claims may involve:

• A client may claim that your negligence led to a data breach, system failure, or loss of client data, leading to financial loss.
• Breach of Contract. A client may sue you over missed deadlines that resulted in financial loss.
• A client may claim that you misrepresented the scope or costs of your services, requiring them to pay more than anticipated.
• Copyright Infringement. Some tech E&O policies also cover lawsuits alleging software copyright infringement.

In the event of a covered lawsuit, your tech E&O policy will help cover your legal costs, such as defense and settlements or awards, up to your policy limits and per the terms in your policy. This coverage is important because other types of insurance typically don’t cover lawsuits involving third-party financial losses due to professional services.

Do You Need Tech E&O Insurance?

If your company provides IT services, you could probably benefit from tech E&O coverage. Consider the following scenarios:

• eCommerce Web design services. A client requests a website on a tight schedule, and you scramble to complete it on time. You succeed – but the website has glitches that result in lost sales. The client claims these errors resulted in significant lost revenue and files a lawsuit.
• Cybersecurity services. Although your services are successful in preventing many cyberattacks, one of your clients is hit by ransomware. The client sues you for misrepresentation and negligence.
• Cloud hosting services. You experience a cyberattack that disrupts your services. Although no data is permanently lost, some of your clients are temporarily unable to access their files. Some of your clients claim financial losses as a result and sue your company.

These are just a few examples of how issues may lead to lawsuits. If you provide IT services, including software development, website design, cloud hosting, or cybersecurity, make sure you have protection against litigation.

What Would an Uncovered Lawsuit Mean for Your Company?

No matter how carefully you work, there’s always a chance that your clients will be unhappy with the results. If your clients say they have lost money as a result, a lawsuit is likely.

• If your company had to cover defense costs, settlements, and awards, what would it do to your bottom line? One big lawsuit has the potential to bankrupt a company.
• How would the lawsuit affect your reputation? Having adequate insurance coverage in place can help shield your reputation by supporting a strong defense and/or by making your client whole again.

Do you have the technology errors and omissions coverage you need to protect your company? Heffernan Insurance Brokers offers insurance for technology companies – from pre-IPO and venture-funded companies to global corporations and enterprises. We can help you manage your risks as you scale your company. Learn more.

Do you know how to choose the right health coverage for your needs? Navigating health insurance options can be overwhelming, and if you don’t understand the jargon used to describe plans, you could end up with one that doesn’t fit your budget or give you the benefits you need. Whether you’re shopping for an individual health plan or a Medicare plan, learn how to compare plan options before you buy.

Health Plan Types

Health plans come in different varieties. The type of health plan you choose can impact both your costs and your coverage. Common plan types include:

• Health Maintenance Organizations (HMOs) typically require members to use providers within the plan’s network. With the exception of emergencies, if you see a provider who is not in your plan’s network, you probably won’t have coverage, meaning you’ll have to pay for the full costs on your own.
• Preferred Provider Organizations (PPOs) incentivize members to use network providers with lower out-of-pocket costs. If you see a provider who is outside of your network, your costs may be higher.
• High-Deductible Health Plans (HDHPs) have a large deductible that must be paid before the insurer begins paying its share of coverage. The upside is that these plans typically have relatively affordable premiums, so they may appeal to people in good health, especially when combined with a Health Savings Account (HSA).
• Fee-for-Service plans pay providers an agreed upon fee for each health service. Original Medicare is an example of a fee-for-service program.

Your Health Insurance Costs

When comparing health plans, you need to consider the costs you will pay. These costs take several forms, notably:

• This is what you pay to buy coverage, whether or not you actually receive care. Most premiums are paid on a monthly basis. If you are paying for group health insurance provided by an employer, your premiums may be deducted from your paycheck. Medicare premiums are often deducted from the member’s Social Security benefits. Otherwise, you will need to send the insurer a monthly payment. You may want to sign up for automatic payments to avoid missed payments that could lead to termination of coverage.
• This is what you have to pay out of pocket before the insurer starts to cover its share of costs. Some types of care, particularly preventive care, may be covered before the deductible is met. The deductible resets each plan year.
• Copays/Co-insurance. This is your share of the cost each type you receive care. It may be expressed as a flat fee or as a percentage.
• Out-of-Pocket Limit. This is the most you will be responsible for paying in a plan year. However, uncovered or out-of-pocket care may not apply to your out-of-pocket maximum.

Networks and Formularies

Many plans use networks and formularies.

• Networks show the providers and facilities that accept the insurance plan. If you see a provider or go to a facility outside of the network, you may not have coverage, or your costs may be higher. Networks may change during the year.
• Formularies show the prescription drugs that are covered by the plan. Many plans use a tiered formulary with different out of pocket costs depending on the tier.

Referrals and Prior Authorization

Some plans require you to secure a referral before seeing a specialty provider or prior authorization in certain situations.

• Before seeing a specialty provider, you may need to receive a referral from your primary care provider. For example, if you want to see a dermatologist, you may need to go to your primary doctor first to get a referral.
• Before receiving certain types of care, you may need prior authorization from your insurer. For example, if you doctor recommends a particular medication or elective surgery, the insurer may need to approve this first.

Referrals and prior authorization are intended to keep costs down, but some critics argue that they create barriers to care and cause delays in treatment, so it’s important to consider whether a plan requires referrals or prior authorization.

How to Compare Health Plans

Comparing health plans can take some time, but it’s worth the effort since your plan will impact your care and costs for the entire plan year.

• Add up your total expected costs. Don’t just look at premiums. Calculate how much you might pay for the care you expect to need.
• Look for your providers. If the plan uses a network, see if your providers are included.
• Check coverage for your prescriptions. If you take any prescriptions, see what the costs are.
• Consider the impact of unexpected health issues. Even if you don’t currently have any health concerns, consider the impact of an unexpected injury or illness. Could you afford the out-of-pocket costs?
• Look at the ratings and reviews. Medicare Advantage plans have a star rating that you can use to compare plans. You can also look up reviews for carriers. Keep in mind that most people only review insurance carriers when they have a complaint, so reviews may skew negatively.

Still confused about your health care insurance options? Don’t worry. Heffernan Insurance Brokers can help you navigate your choices. Learn more.

From major property damage to lawsuits, unexpected claims cut into profits for businesses in the hospitality sector. Hospitality insurance and risk management are essential safeguards.

What Is Hospitality Insurance?

Hospitality insurance isn’t a single insurance policy. Rather, this term refers to a comprehensive insurance program designed specifically for the needs of businesses in the hospitality industry. Businesses that may benefit from hospitality insurance include restaurants, bars, hotels, resorts, catering companies, and golf courses. Event planners also need hospitality insurance that covers event liability.

Why Do Hospitality Businesses Need Special Insurance?

Many of the coverage types that hospitality businesses require are similar to those that businesses in other sectors need. For example, slip and fall injuries can happen in any setting – from restaurants to offices – so most business owners need coverage for this type of risk.

However, hospitality businesses also have many unique exposures. Liquor liability is a prime example. Bars, restaurants, hotels, resorts, and events frequently serve alcohol, which opens up the possibility of excessive or underage drinking. Many states have dram shop laws, which mean businesses that serve alcohol may be liable for injuries or property damage that results from overserving.

Other unique risks involve causing personal injury while serving food or beverages or providing lodging or other amenities. For example:

• A California man was recently awarded $50 million after a hot tea spilled in his lap in a Starbucks drive through.
• Guests at a hotel in Ventura, California were awarded damages of $2M after being bitten by bed bugs.
• A hotel in Texas is being sued for gross negligence in the drowning of an 8-year-old guest in their lazy river pool.
• In another notable case, MGM resorts, was sued for premises liability following the 2017 mass shooting by a gunman located on their Mandalay Bay property. Victims and their families claimed that MGM failed to implement security that could have prevented the attack in this landmark case that ultimately settled for $800M.

These cases make it clear that strategic and hospitality-tailored risk management programs are essential.

Putting Together Your Comprehensive Hospitality Insurance Program

Although businesses within the hospitality sector share many of the same exposures, each business is unique. This means each insurance package needs to be unique, too. An insurance broker who understands the hospitality sector can help you craft a comprehensive insurance package that fits your specific needs. This may include:

• Commercial Property Insurance – Provides coverage for property damage from many common perils, including fire, wind, hail, and vandalism. Whether you need to fix the roof or completely rebuild, commercial property insurance will help you get back to normal as quickly as possible.
• Business Interruption Insurance – Protects your business from lost income due to covered perils (typically the same perils as those that commercial property insurance covers). Property damage isn’t the only loss that businesses experience after a disaster. If you have to close your business for a prolonged period, the lost income could make it hard to reopen. Business interruption insurance provides coverage for this risk.
• Commercial General Liability Insurance – Provides coverage for lawsuits alleging bodily injury, property damage, or personal and advertising injuries. From slip and fall lawsuits to allegations that your advertisements infringe on someone else’s copyright, general liability insurance provides coverage for many common lawsuits.
• Liquor Liability Insurance – Covers your business in case of claims involving property damage or injuries caused by intoxicated customers. If you sell or serve alcohol, this is important coverage.
• Commercial Auto Insurance – Provides coverage for company vehicles and meets state requirements. Whether your company owns one vehicle or a fleet, commercial auto insurance is a must. In addition, hired and non-owned auto liability insurance provides important coverage for the personal vehicles you use for business purposes.
• Cyber Insurance – Protects your company against the impact of data breaches and other cyberattacks. Many businesses rely on computer systems to take payments, check in guests, and handle other critical operations. They often have sensitive payment information that may make them attractive to hackers.
• Employment Practices Liability Insurance – Offers coverage for many employment-related lawsuits. If your company is sued for harassment or discriminatory hiring and firing practices, EPLI will cover your legal defense.
• Workers’ Compensation Insurance – Provides coverage for work-related injuries and illnesses and meets state requirements. Hospitality workers face threats of violence from the public as well as everyday risks associated with back injuries, falls, and transportation accidents.
• Event Liability Insurance – Designed to cover the liability needs of events. If a guest is injured or property belonging to a third-party is damaged, event liability insurance provides coverage.

Are you looking for comprehensive hospitality insurance? Heffernan Insurance Brokers offers coverage designed to meet the needs of businesses like yours. Learn more.

Educational facilities should be safe environments that encourage learning. In reality, though,  dangerous situations may occur anywhere – and educational settings are particularly vulnerable to certain types of risks. Liability insurance in educational settings can support your commitment to safety and security while protecting your organization. 

How Liability Insurance Protects Schools and Their Students 

In its simplest form, the purpose of insurance is to provide a payout that will make the insured whole again after a loss. In the case of liability insurance, coverage can protect schools from litigation defense costs and any resulting settlements, while also ensuring victims receive compensation.  

In many cases, an insurance program will also help schools prevent losses from occurring in the first place. Many insurers provide loss prevention resources and training to help policyholders avoid cyberattacks, crashes, and other common claims.  

What Type of Liability Insurance Do Educational Institutions Need? 

Liability takes many forms, and no single insurance policy covers every type of risk. Depending on the nature of your organization and your risks, you will likely need multiple types of liability insurance coverage.  

Educational organizations should consider the following coverage types: 

• Abuse and molestation insurance 

• Educators professional liability insurance 

• Directors and officers liability insurance 

• Employment practices liability insurance 

• Workers’ compensation insurance 

• General liability insurance 

• Auto liability insurance 

• Cyber liability insurance 

Abuse and Molestation Liability  

Statute of limitations reform has made it easier for victims of child sexual abuse to file lawsuits years after the alleged abuse occurred. While this is a win for victims, it also exposes schools and other organizations to lawsuits stemming from events that took place decades ago.  

AP News says Los Angeles County approved a $4 billion payout to settle 7,000 claims of sexual abuse in juvenile facilities. According to Los Angeles Times, this may have triggered more lawsuits. The surge in sexual abuse litigation has left schools struggling to pay settlements since. One recent case involved five women who sued the Fresno County school system for allegedly dismissing claims that they were being assaulted by a teacher who was later convicted. 

Does your school have coverage? Regular policies may not adequately cover these risks, creating the need for abuse and molestation coverage. 

Educators Liability  

Providing an education isn’t always straightforward. Teachers, board members, and administrators can be caught in the middle of political conflicts over preferred pronouns, LGBT rights, religion, and other highly-controversial issues. They also have to navigate special needs, bullying, and poor academic performance.  

Lawsuits are common:   

• According to WSAZ, a high school graduate is suing her school for negligence because she graduated with honors despite never learning to read or write. In a similar case, a former student is suing his school, alleging that he graduated with a 3.4 GPA even though he couldn’t read or even spell his own name, according to Action 5 News. 

• A California school district is being sued for using a student’s preferred pronouns without telling a parent. According to Courthouse News Service, a lower court dismissed the complaint, but the Ninth Circuit reversed the decision.  

• A former middle school student won a $1 million verdict against a California school district over claims that the school failed to protect her from bullying that allegedly took place on school property and school-supervised trips, according to People. The district’s appeal was unsuccessful. 

Does your school have coverage? Depending on the nature of the lawsuit and who’s named, educators professional liability insurance and directors and officers insurance may provide protection. 

Employment Liability 

Controversial issues may also lead to employment liability, particularly when teachers are fired over the way they handle issues in the classroom. Consider these recent lawsuits: 

• A former teacher is suing his school for alleged religious discrimination, according to the Palo Alto Daily Post. He says he was fired after the biblical story of Adam and Eve came up in a classroom discussion on the origins of human life. 

• A former kindergarten teacher is suing the Oakland Unified School District for violating her First Amendment and religious freedom rights by firing her because she refused to use a student’s preferred pronouns according to FOX KTVU.  

Does your school have coverage? Employment practices liability insurance provides coverage for wrongful termination lawsuits and many other employment-related claims.  

Work Comp, General Liability, and Auto Liability Insurance 

Although teaching is normally a fairly safe occupation, there are still work comp risks. According to the Bureau of Labor Statistics, teachers experience illnesses or injuries requiring days away from work, job restriction, or transfer at a rate of 85.0 per 10,000 full-time workers. Compared to all occupations, teachers were twice as likely to experience violence. 

Students and guests are also vulnerable to injuries, which may occur on school grounds or while riding school buses. There’s also a risk of damage to property owned by students, staff, or community members. If teachers or other employees drive in course of their work, you may also have commercial auto liability insurance exposures. 

Does your school have coverage? Depending on the nature of the claim, workers’ compensation, general liability, or auto liability insurance may provide coverage. 

Cyber Liability  

Educational organizations possess sensitive personal data that may make them targets for cyberattacks. In a recent example, NBC News says multiple school districts have been hit with extortion attempts after a software company that serves schools experienced a data breach. The software company paid hackers to prevent them from publishing children’s personal information. Months later, though, the hackers are still going after school districts. 

Does your school have coverage? Cyberattacks are often expensive, but cyber liability insurance can help schools recover. 

Heffernan Insurance Brokers offers insurance and risk management solutions for educational organizations, including K-12 schools, colleges, universities, vocational and trade schools, tutoring programs, and online programs. Our clients have access to specialty programs designed for the educational sector. Learn more.