As an insurance broker dedicated to the senior living sector, I am amazed and impressed by how many of our current and future clients have expanded their resident services offerings in order to meet increased acuity levels and the socialization needs of residents and their families given the regulatory, legal and labor climate challenges that exist.
At the same time, the commercial insurance marketplace has become increasingly challenging given the recent tragic natural disasters, the withdrawal of casualty insurance carriers form the marketplace, and the increasingly hostile litigation environment.
Heffernan continues to offer a client platform that features unique carrier access and proactive, and hands on advocacy in the rapidly changing and challenging commercial insurance marketplace. I believe the odds are very good that we can make a very favorable impact on your commercial insurance placements via a fiercely proactive brokerage experience.
Would you be open to updating me on your current placement and interest level in a brief conversation or email exchange? 10 minutes or so should be enough time for us to determine if next steps are mutually beneficial.
Heffernan Insurance Brokers – CA Insurance License # 0564249
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Why Business Should Prepare Now for Insurance Market Hardening
You might not realize it, but times have been pretty good for insurance customers. Although there have been some exceptions, for the most part, premiums have been steady or even reducing for years now. This may be about to change.
Why are market conditions changing? Because insurers are experiencing higher than expected losses. According to the 2019 A.M. Best Market Segment Report, the reported combined ratio for the P&C insurance industry has been above 100 – indicating an underwriting loss – since 2016. In 2017, the combined ratio reached 104.
If these losses continue, rate increases will follow. Securing coverage may become more challenging. Essentially, we may be looking at a hard market.
What’s driving higher-than-expected losses?
With property insurance, natural disasters are mostly to blame. The A.M. Best report says that Hurricanes Harvey, Irma and Maria contributed to near-record high U.S. catastrophe losses in 2017, with net catastrophe losses of $53 billion. Then in late 2018, the U.S. was hit with Hurricane Michael as well as the California wildfires, resulting in net catastrophe losses of more than $37 billion.
Lyft’s stock prices plunged soon after the ride-sharing company went public. According to the Insurance Journal, lawsuits from investors caused the stock price to drop 17 percent just weeks after the initial offering. For many startups, going public is the dream – but that dream can lead to legal nightmares. As more tech companies are going public with an Initial Public Offering (IPO), they need to brace for the possibility of lawsuits and protect themselves with insurance coverage.
The Problems Goes Beyond Lyft
Lyft’s legal woes have received a fair amount of attention, but it isn’t the only company to face legal challenges soon after going public.
In an article on the recent flood of IPOs, Inc. lists several other companies – Eventbrite, Facebook, Twitter, Snap and Blue Apron – that faced shareholder lawsuits soon after going public. ISS Securities Class Action Services says that IPO-related lawsuits have doubled since 2013.
Bloomberg Law issued another warning: While shareholder litigation against IPOs is increasing, dismissals of IPO-related lawsuits are becoming less common. As a result, companies are more likely to deal with time-consuming and costly legal battles.
It’s difficult to overstate the risk posed by cybercrime. There’s no question that your business will be hit. The only question is when. The 2017 Small Business and Cyber Insurance Report by the Insurance Information Institute stated that 55 percent of small and midsize businesses experienced a cyberattack in the previous year, and about half experienced a data breach. These numbers continue to rise. Cyber incidents come in many forms. When we talk about cybercrime, we’re actually talking about a wide range of threats. These include the following:
Data Breaches: Personal information – such as credit card numbers, passwords, Social Security Numbers and other details – is a hot commodity on the black market.
Malware: An infected computer system can wreak havoc on a business. Ransomware is used to encrypt files, holding them hostage until a sum of money is paid. Other malware may be used to spy on users or to access sensitive information.
Business Email Compromise and Phishing: Some cyber attacks target the people using computers rather than the computers themselves. In phishing schemes, people are tricked into providing sensitive information. Spear phishing is similar, but the attacks target specific individuals. In business email compromise schemes, employees are tricked into wiring large sums of money to a third party.
Denial of Service Attacks: In these attacks, a malicious actor floods a site with traffic, causing it to crash. This prevents other people from using the site as intended. Businesses must be proactive.
Companies must do everything they can to mitigate the risk.
Cyber premium rates are going up due to increasing claims. Now would be a good time to lock coverage.
Contact me and I will forward very simple and fast application.