Beware of Nonprofit Board and Reputation Exposures

Nonprofits can be sued over a wide range of claims, just like their for-profit counterparts. In fact, Insurance Journal reports that directors and officers liability claims occur twice as often in nonprofits compared to private companies.

The increase in lawsuits could stem from a number of possible issues.  Nonprofits may be so focused on their cause that they neglect other issues.
Nonprofits may incorrectly believe their nonprofit status makes them an unlikely target.
Individuals serving on nonprofits may be busy with other duties, and they may be working outside their normal sphere.
Donors often have high expectations for how funds are managed.
Nonprofits often work with vulnerable populations.
Volunteers may not be screened properly.
Regardless of the cause, nonprofits get sued – a lot. When this happens, the nonprofit’s financial stability and reputation can be put in jeopardy.
Nonprofits depend on their reputation.
Reputation is important to all corporations, but this is especially true in the case of nonprofits. As Risk & Insurance explains, nonprofits depend on their reputations to secure grants and donations.

Many things can damage a nonprofit’s reputation, from claims of mismanaged funds to inappropriate actions of volunteers. Some threats may come from outside. For example, cyber attacks that reveal personal data could damage a nonprofit’s reputation. Fundraising fraud, described in Risk & Insurance as people who impersonate nonprofits to elicit and steal donations, is another worrisome threat.

Contact me today to learn more about the best possible insurance for your needs.

Best Regards,

M. Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151
 brantw@heffins.com

Selecting A Business Insurance Broker: 5 Questions to Consider

Business insurance is a complicated matter. To make sure you’re getting the best coverage, rates and services, you need to enlist the help of the right business insurance broker. To find that perfect match, consider these issues.

Independent or Captive?
Once you have a policy, your insurance carrier will provide your coverage and pay out any claims. To get a policy, you typically need to go through an agent, also called a broker. There are different types of agents, but they’ll generally be classified as either captive or independent.
A captive agent works for one carrier. This means that the agent will only be able to offer you policies from a single carrier, even if other carriers may be a better fit for you.
An independent agent, on the other hand, is contracted with multiple carriers. This means that the agent can select from a much wider range of policy options in order to find that coverage and rates that best fit your needs.

Multiple Agents or One?
Employee benefits. General liability insurance. Workers’ compensation. The list goes on. You need a lot of different types of insurance. So, should you deal with multiple agents – or get everything you need from one agent? Read More 

Contact me today to learn more about the best possible insurance for your needs.
Best Regards,
brant-sig

M. Brant Watson
Senior VP

Advocacy and Guidance in the Commercial Insurance Marketplace

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Heffernan’s reputation and success was built through our work in industry niches s such as nonprofit, construction, healthcare, transportation, hospitality, food distribution, real estate and technology. With ten branch offices coast-to-coast and approximately 450 staff members, Heffernan’s reach spans to most industries!
With 30 years of underwriting and brokerage experience, I will evaluate your current and historic insurance placements and in many cases be able to offer your business meaningful and impact alternative cost, coverage and risk management program options to optimize your protection and competitiveness in your industry!

Do you Ignore the Biggest Business Risk?

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.

Businesses are familiar with this risk. After all the high-profile data breaches and ransomware attacks, it’s hard not to be. At the same time, like ostriches with their heads stuck in the sand, many businesses are ignoring the risk instead of taking action.
This is a mistake. According to the Internet Crime Complaint Center (IC3), there were more than 300,000 reported incidents of cyber crime in 2018, resulting in more than $1.4 billion in losses.
Want more information contact me.
Best Regards,
M. Brant Watson
Senior Vice President
Heffernan Insurance Brokers
D: (925) 295-2506
M: (925) 330-1151

Insurance for Senior Care & Living Communities

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.
Thank you for your ongoing consideration!
Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151

Heffernan Insurance Brokers Acquires Mahan Insurance Brokers

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, 2019Michael Mahan and Marissa Garmendia will join Heffernan’s Irvine, California office, and Robert Mahan will continue to play an active role in advising clients.

Heffernan Insurance Brokers logo (PRNewsFoto/Heffernan Insurance Brokers)

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.”

Read More 

Insurance for Senior Care & Living Communities

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.
Thank you for your consideration!

Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151
Heffernan Insurance Brokers – CA Insurance License # 0564249
This communication, including attachments, is for the exclusive use of addressee and may contain proprietary or confidential information. If you are not the intended recipient, any use, copying, disclosure, dissemination or distribution is strictly prohibited. If you are not the intended recipient, please notify the sender immediately by return email and delete this communication and destroy all copies. Please note, any request to bind coverage, modify coverage or report a claim is not valid until you receive confirmation from Heffernan Insurance Brokers that we have processed your request.

Why Business Should Prepare Now for Insurance Market Hardening

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.
How can you prepare for a hard market?

Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151

Protect Your IPO with Technology Insurance

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.

Why IPOs Needs Tech Insurance

Read More

Contact me and explore the possibilities.

Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151
brantw@heffins.com

Shield Your Company from Cybercrime

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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.
Read More
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.
brant-watson
M. Brant Watson
Senior Vice President
Heffernan Insurance Brokers
D: (925) 295-2506
M: (925) 330-1151
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