Today’s businesses face many risks, from competition from high-tech startups to lawsuits over employment practices. But the biggest modern risk of all is one that you might be ignoring – the risk of cybercrime.
WALNUT CREEK, Calif., Oct. 2, 2019 /PRNewswire/ — Heffernan Insurance Brokers, one of the largest full-service, independent insurance brokerage firms in the United States, acquires Mahan Insurance Brokers. The firm has purchased the assets of the Newport-based Mahan effective October 1, 2019. Michael Mahan and Marissa Garmendia will join Heffernan’s Irvine, California office, and Robert Mahan will continue to play an active role in advising clients.
With over 30 years of expertise, Mahan has a strong understanding of insurance needs of businesses and professionals. Their specialty in construction insurance will be a pronounced enhancement to Heffernan’s construction niche practice.
“The team’s deep knowledge of the construction industry, along with the high standard of customer service they’re known for, will be great complements to our Irvine office,” said F. Michael Heffernan, President and CEO of Heffernan Insurance Brokers. “We’re happy to have them on board and look forward to a bright future together.”
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.
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.
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.
Why IPOs Needs Tech Insurance
Contact me and explore the possibilities.
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.
Cyber premium rates are going up due to increasing claims. Now would be a good time to lock coverage.