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.

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.  

As overhead prices surge, many restaurants have turned to surcharges to stay profitable. A new California restaurant surcharge law allows these surcharges but requires restaurants to provide clear information on menus. These rules are in effect as of July 1, 2025, so make sure your restaurant is compliant.

The Controversy over Restaurant Surcharges

Faced with higher operating costs and changing regulations, many restaurants are forced to raise prices. Rather than increase the cost of each individual menu item, some restaurant owners have introduced surcharges. According to a 2023 report from the National Restaurant Association, 15% of restaurants had added a surcharge. A year later, 16% of restaurants had added a surcharge. Although these surcharges can take different forms, many are service fees that are added to checks for large groups, especially in states that have banned tip credits. Delivery fees are also common. Surcharges can also be a way to deal with price fluctuations and supply chain snags. USA Today says some restaurants added egg surcharges to cope with egg shortages caused by bird flu. For example, Waffle House introduced a temporary $0.50 surcharge per egg in February.

While restaurant operators may view this as a practical approach, diners aren’t always happy to see extra charges on their bills. CNBC says some customers are surprised by the extra costs and feel like they’re being tricked into paying more. Some Reddit users even created a list of restaurants charging hidden fees.

Legislation Against Hidden Fees

Restaurants aren’t the only industry to leverage fees. California passed SB 478, the False Advertising Law, banning businesses from charging hidden fees that are not included in the initial price presented to customers. On a national level, the FTC introduced a ban on so-called junk fees. According to the National Restaurant Association, the rule initially included restaurant fees, causing alarm among restaurant owners who said they would have to raise their prices if they couldn’t charge delivery fees or other fees. Additionally, the FTC estimated the rule would cost each restaurant an average of about $5,000 to implement.

While it looked like both of these laws would initially apply to restaurants as well as businesses in other industries, exceptions were made to provide relief to the restaurant industry. The National Restaurant Association says the FTC excluded restaurants from the junk fee ban. Meanwhile, Restaurant Hospitality explains that Governor Newsom signed an exemption, SB 1524, to exclude restaurants from the California ban on fees. However, this did not mean that restaurants would be free to add hidden fees, as the California law also created disclosure requirements to prevent surprise charges.

New Restaurant Surcharge Rules Effective July 1, 2025

SB 1524 takes effect on July 1, 2025, and applies to restaurants as well as bars and other food service companies. Under this new law, these businesses are required to conspicuously display additional fees along with an explanation of the fees’ purpose on advertisements, menus and other displays.

The key word here is “conspicuously.” Restaurants need to ensure that any and all fees are clearly displayed so diners will not be surprised when they receive the bill. The California Restaurant Association explains that fees should be displayed in a larger or contrasting type, font or color to the surrounding text or set off by symbols or other marks to call attention to the fee.

Many restaurants that use fees will need to update their menus and advertisements to comply with this requirement. Restaurants that have menus posted on various websites should verify that they are all updated. Restaurants that violate these requirements may be subject to legal action, and consumers can seek actual damages of at least $1,000. You can read SB 1254 here.

New regulations like the California’s surcharge rule can make it hard for restaurants to manage their risks. Heffernan Insurance Brokers can help with specialized risk management and insurance solutions designed for the hospitality industry. Learn more.

Real estate purchases tend to be some of the highest-value transactions, and there’s a lot that can go wrong. Whether you’re buying a home or investing in real estate, title insurance provides a layer of protection to help support a smooth closing process.

What Is Title Insurance?

When you buy real estate, you receive the title, which refers to the legal right to own the land. The deed is the actual physical document that attests to your ownership.

Title insurance is a type of insurance that provides protection for certain problems that can occur during the transfer of ownership. Depending on the type of title insurance purchased, title insurance can provide protection for the owner and/or the lender involved in the transaction.

Why Is Title Insurance Important?

In a real estate transaction, you have a seller who agrees to sell the property for a certain price and a buyer who agrees to buy the property for that price. But what if the seller doesn’t actually have the right to sell the property? Or what if someone else claims interest in the property after the purchase has gone through?

According to the Texas Department of Insurance, examples of possible problems include unpaid property taxes, fraud or forgery of previous paperwork and a spouse or unknown heir who claims to own the land.

To avoid these problems, it’s important to make sure the property you’re purchasing has a clear title. However, sometimes problems slip through the cracks. That’s why title insurance is important. Many lenders will require buyers to secure a type of title insurance that protects the lender. Buyers can also choose to purchase title insurance that protects them.

Title Fraud Is a Growing Problem

Imagine finding the home of your dreams, going through the long purchasing process, putting down a large downpayment – and discovering that the actual owner of the house never put it up for sale, and you’ve been dealing with a scammer this entire time.

Title fraud is a growing problem. According to House Beautiful, so-called “title pirates” pose as owners in order to make fast, illegal sales. As real estate transactions have gone digital, it’s been easier for title pirates to pull off their scams.

The FBI explains that this type of fraud is especially easy with vacant land because there’s no one living there to object to the sale. Scammers are often well prepared with fake ID, fake documents, and the address of the real owner.

However, there have also been cases of scammers selling, or trying to sell homes. According to CBS News, a least two homeowners in Massachusetts say scammers tried to sell their homes out from under them. In another case, Realtor.com says squatters allegedly sold a home they were staying in. When the owners were away for an extended period, the squatters reportedly forced their way in and found personal documents that they used to commit fraud.

Who Should Buy Title Insurance?

If you are financing your real estate purchase, your lender will likely require you to purchase lender’s title insurance. However, this policy ONLY protects the lender. If there is a problem with the title, the lender’s title insurance will protect the lender’s interest, but it will not protect the buyer. This is why it’s smart to purchase owner’s title insurance regardless of whether you’re financing or paying with cash. Although owner’s title insurance is optional, if there are any problems with the title, you will likely be glad that you have it.

How Much Does Title Insurance Cost?

When title insurance is purchased, it is typically paid with a one-time payment at closing. The cost can vary, but it is tied to the cost of the property. The more expensive the property, the more expensive title insurance will be. The price tends to be around 0.5% to 1% of the property price. For a $500,000 property, this comes out to around $2,500 to $5,000.

Are Your Assets Covered?

If you’re buying property for your home or business, Heffernan Insurance Brokers can work with you to understand your exposures and recommend appropriate coverage to protect you and your finances. Learn more.

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.