As a farmer or rancher, you may produce a variety of products. Maybe you grow grain, flowers or fruit, raise cattle, horses or alpacas, or manage fish ponds, chicken barns or a custom farming fleet. A farms/ranches business owners policy is essential for protecting your livelihood.
What is a Farms/Ranches Business Owners Policy?
A regular homeowners’ policy covers your home if it’s damaged, and it may give you some liability coverage. This policy won’t give you the protection you need for your farm or ranch business, outbuildings or livestock, though. You need a specialized farms/ranches business owners policy with several layers of protection.
What Does a Farms/Ranches Business Owners Policy Cover?
Farm and ranch owners may customize their business owners insurance policy. In general, your farms/ranches business owners policy covers:
House – Repair or replace your farm or ranch house and any possessions
Liability – Cover medical and legal expenses you may incur if someone is injured while visiting your farm or ranch.
Livestock – Receive financial reimbursement if your livestock are stolen, attacked by dogs or wild animals, accidentally drown or are shot, suffer electrocution or die during a natural disaster or collision.
Machinery and equipment – Replace damaged, lost or stolen tractors, wagons and other machinery and equipment you own, borrow, rent or lease for farm or ranching activities.
Structures – Cover farm/ranch structures, including barns, pens, fences, silos, machine sheds and other buildings, that may be damaged, stolen or vandalized during a weather incident or other incident.
Additionally, you may customize your farms/ranches business owners policy with a schedule that’s based on your specific farm or ranch operation. If something on your farm or ranch is not listed on the schedule, it may not be covered if it’s damaged, lost, stolen or vandalized.
Ask your insurance agent about these optional coverages, too.
- Accidental Direct Physical Loss
- Amendatory Deductible on Cab Glass
- Chemical Drift
- Custom Farming
- Crop Dusting
- Equipment Breakdown
- Extra Expense
- Fire on Growing Grain
- Hired Auto
- Incidental Business
- Limited Pollution Liability
- Loss of Earnings
- Seasonal Coverage
Where do you Buy a Farms/Ranches Business Owners Policy?
A farms/ranches business owners policy is a valuable investment. To purchase a policy, talk to your insurance agent. Discuss your unique needs, business and budget and create a policy that’s right for you. For example, you may choose a policy with high liability limits if you conduct school tours on your farm or ranch, and the size of your farm or ranch affects the amount of coverage you will buy.
A farms/ranches business owners policy gives you peace of mind and valuable protection for your home and your business. Understand what it is as you operate your farm or ranch.
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DHS Warns of Utilities Malware
Two cyber security firms have uncovered malicious software that they believe caused a Ukraine power outage last December. The software was recently uncovered by two cyber security firms—ESET, a Slovakian anti-virus software maker, and Dragos Inc., a U.S. critical-infrastructure security firm.
The two firms released details of the malware, which goes by two different names, Industroyer and Crash Override. They also issued alerts to governments and infrastructure operators to help them defend against the malware, warning that it could be easily modified to harm critical infrastructure operations around the globe.
The U.S. Department of Homeland Security (DHS) hasn’t seen any evidence to suggest that its critical infrastructure has been affected, but it will continue to investigate, as there is the possibility of more attacks using the same approach. In an alert posted on its website, the agency stated that “the tactics, techniques and procedures described as part of the Crash Override malware could be modified to target U.S. critical information networks and systems.”
In the same alert, the DHS posted a list of technical indicators that a system had been compromised by Crash Override and asked firms to contact the agency if malware was suspected.
Power firms are concerned that there could be more attacks, especially considering the malware could attack other types of infrastructure, such as transportation, water and gas providers.
The two companies do not yet know who masterminded the attack, although Ukraine blames Russia. Officials in Moscow have denied the claims.
Microsoft Warns of Cyber Attacks
Citing an elevated risk of cyber attacks, Microsoft has released several security updates during its June “Patch Tuesday” in an effort to protect against widespread hacking. A recent blog post by Adrienne Hall, General Manager of Microsoft’s Cyber Defense Operations Center, stated, “In reviewing the updates for this month, some vulnerabilities were identified that pose elevated risk of cyber attacks by government organizations, sometimes referred to as nation-state actors or other copycat organizations.”
WannaCry
In May 2017—after the WannaCry ransomware locked hundreds of thousands of machines around the world and demanded that victims paid a ransom in bitcoin—Microsoft was prompted to release updates for software that it no longer supports. This was an unexpected move that preceded more updates for old, outdated systems.
Microsoft’s motives for June’s most recent security updates are speculative, and it is unclear whether the company has been warned of another cyber attack using exploits similar to those of WannaCry. A Microsoft spokesperson stated that the decision to release the most recent updates is “an exception based on the current threat landscape and the potential impact to customers and their businesses.”
WannaCry Came from North Korea
According to British security officials, the May 2017 global ransomware attack that affected over 200,000 computer systems came from North Korea. The hackers are believed to be a hacking group known as Lazarus—the same group that targeted Sony Pictures in 2014.
In the wake of increasing tensions resulting from North Korea’s missile tests, the DHS and the FBI have issued an alert to businesses about another possible cyber attack led by North Korea, warning people to update old software
Recent Findings
British security officials have recently linked the North Korean government to the creation of WannaCry, based on tactics, techniques and targets. The ransomware was originally built around a hacking tool belonging to the National Security Agency and spread through a flaw in Windows.
The Importance of Performing Updates
WannaCry is believed to be a flawed attempt to raise revenue for the North Korean regime, considering the hackers have not yet cashed in the $140,000 in bitcoin they stole. That is likely because the transactions are easy to track. Despite the failed attempt, one of the reasons why WannaCry was so powerful was because many of the facilities attacked hadn’t updated their software to patch holes in security.
The most recent security update includes patches to its Windows XP, Windows Vista and Server 2003 products, which are all unsupported but still widely used. Microsoft suggests customers enable Windows Update if they haven’t already.
Target to Pay Settlement from 2013 Data Breach
Target has agreed to pay $18.5 million to settle claims made by 47 states and the District of Columbia as well as to resolve an investigation into the retailer’s massive data breach in 2013.
The investigation found that Target’s gateway server was accessed by cyber hackers through credentials stolen from a third-party vendor. As a result, data from up to 40 million credit and debit cards were stolen during the 2013 holiday season.
The total cost of the data breach was $202 million, according to Target. The state receiving the largest share of the settlement is California, which will receive more than $1.4 million.
Michigan Utility Company Loses Employees After Cyber Attack
A Lansing utility company is still recovering from a 2016 cyber attack that temporarily disabled its internal network and asked for a $25,000 ransom. According to officials, an employee unsuspectingly clicked on an infected email attachment, which shut down the company’s accounting and email systems.
Since the cyber attack, 14 employees have voluntarily left the company—13 of which were IT employees. The company is devoting its resources to minimize the odds of an attack and to quickly recover in the event it is hit again.
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Softwood Lumber Prices Keep Climbing
As the lumber dispute between Canada and the United States continues, uncertainty over the softwood lumber supply has increased prices by more than 12 percent since January, according to a National Association of Home Builders (NAHB) analysis. Although the Trump administration is eager for a quick deal to end the dispute, the Canadian government doesn’t see an agreement any time in the near future.
In April, the U.S. Department of Commerce announced an average preliminary 20 percent import tax on Canadian softwood lumber. That could increase to 30 percent after a U.S. decision on new anti-dumping penalties, according to RBC Capital Markets.
The United States imports one-third of its lumber supplies, and more than 95 percent of that comes from Canada, according to the NAHB.
Trump Signs Apprenticeship Order
In an effort to fill some of the 6 million open jobs in the United States, President Donald Trump signed an executive order providing more money for private companies to design apprenticeship programs. The order nearly doubles the $200 million in taxpayer money spent on learn-and-earn programs under a grant system called ApprenticeshipUSA. To avoid using federal money to fund the order, Trump is directing a government review, hoping to streamline over 40 workforce programs across 13 agencies.
There are about 500,000 apprenticeship positions in the country, representing less than 1 percent of the entire U.S. workforce. The executive order addresses the nation’s “skills gap” that has left millions of open jobs unfilled. Apprenticeships would give students a way to learn skills without facing the debt associated with attending four-year colleges.
Critics are concerned about limited government oversight, since Trump’s order does not require all apprenticeships to be registered, and the Labor Department would review the apprenticeships under broader standards. They are also concerned about the oversight of apprenticeship programs that operate under private companies’ control.
Heat App Updated in Time for Summer
The National Institute for Occupational Safety and Health (NIOSH) and OSHA have recently redesigned their Heat Safety Tool mobile app. The free app provides information on what precautions outdoor workers should take to stay safe in hot and humid conditions.
The updated app uses a cellphone’s geolocation capabilities to gather weather data from National Oceanic and Atmospheric Administration satellites. It can forecast the hourly heat index and determine whether the user’s current risk level is minimal, low, moderate, high or extreme. The information can help employers adjust work schedules and workloads.
According to OSHA, more than 65,000 people seek medical attention each year for extreme heat exposure.
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Summer Weather Safety Tips
Severe weather causes thousands of injuries and hundreds of deaths each year in the United States. Stay safe this summer by taking the following precautions:
- Create a disaster plan and a disaster supplies kit. Check the American Red Cross website for guidance.
- Identify a safe place to take shelter.
- Check the weather forecast before working outdoors.
- Set up severe weather alerts on your cellphone.
- Purchase a National Oceanic and Atmospheric Administration (NOAA)
“Weather Radio All Hazards” receiver unit with a warning alarm tone and battery.
Many Farmers Upset Over Cuba Policy
On June 16, 2017, President Donald Trump signed a presidential directive rolling back parts of former President Barack Obama’s efforts to improve the United States’ trade relationship with Cuba. Farmers saw the directive as a step backward, as it is expected to tighten restrictions on exports and complicate agricultural trade.
Shipments of U.S. grain and soy to Cuba have soared between 2016 and 2017, thanks to Obama’s 2014 diplomatic breakthrough. Within the first four months of 2017, the United States shipped 142,860 tons of grain and soy to Cuba, up from 49,090 tons during the same period of 2016. Although U.S. farmers have just gotten a taste of the profitability from exporting to Cuba, Trump’s move breakthrough is expected to cost U.S. farmers $125 million per year.
President of the U.S. Grains Council Tom Sleight said in a recent statement that, “Trump’s move could cut off near-term sales and stymie economic development that would drive longer-term demand growth.” Although the amount of exports to Cuba are small in comparison to total U.S. exports—corn exports were close to 56 million tons last year—every bit helps as farmers face a decline in farm income for the fourth consecutive year.
$20 Million Raised for Vertical Farms
Indoor agricultural startup Bowery has raised $20 million in Series A funding to build more farms, plant more crops and hire more people. The urban farming startup is one of many that intend to reimagine farming by growing produce vertically in warehouses across the country, as opposed to planting crops in sprawling fields that are reliant upon good weather.
Co-founder Irving Fain stated that since vertical farms can be built in any city, produce would be more accessible to customers and reach them more quickly.
According to Research and Markets, the vertical farm market is expected to grow to $5.8 billion by 2022.
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Ever since the first ride-sharing app debuted in 2011, they’ve experienced exponential growth in usage. In fact, in the cities where such apps have joined the market, taxi ridership has declined anywhere from 10 to 30 percent. However, while the popularity of ride-sharing apps is increasing, so is the host of risks associated with using them. Most of the companies are in the stages of infancy, and the situations they’re facing are in uncharted territory.
How the Apps Work
While they’re most commonly referred to as ride-sharing apps, any company that uses an online platform to connect passengers with drivers (using the driver’s own vehicle) is called a transportation network company (TNC). These companies each have their own unique differences, but they all operate under the same basic concept.
Through their smartphones, passengers are matched with available drivers via GPS. Most apps display the driver’s route and estimated time of arrival, in addition to the driver’s name, photo and vehicle information. The TNC gets a cut of the fare, typically between 20 to 25 percent, for each ride a driver completes.
The apps are convenient for passengers and for drivers looking to supplement their income. Still, they’re not without flaws. For example, it can be difficult to determine what regulations the TNC and its drivers need to follow, what insurance coverages apply to them and who is considered liable in the event of an accident.
When Insurance Kicks in
Since TNC drivers use their vehicles for both business and personal purposes, TNCs have to clarify when drivers are covered by different types of insurance.
When a driver is driving with the TNC app off, the driver is not accepting rides, so the driver’s personal auto insurance is the primary coverage. When the driver turns the app on, but has not yet accepted a ride, TNCs generally offer contingent liability coverage if the driver’s personal auto insurance does not offer protection. When a passenger is picked up, the TNC’s policy is the primary policy until the end of the ride.
State Involvement
Unlike taxis, which are regulated by the city and have to follow strict guidelines, TNCs haven’t had to adhere to the same strict regulations. This is beginning to change, as legal concerns have grown. Some states are enacting laws to set standards and insurance requirements for TNCs. Furthermore, cases that are currently in the courts will help shed light on who is to be held liable in ride-sharing accidents in the future.
Driver Risks
Some ride-share companies provide liability insurance for their drivers in excess of the driver’s personal liability coverage. However, this does not mean that the driver will always be covered.
Drivers also face the risk of being dropped by their insurance company if they’re found to be misleading them. Drivers need to be honest about what the primary use for the vehicle is when they obtain the policy. If a driver fails to indicate the intention to drive for commercial purposes, the insurer could not only deny claims, but also drop the driver from the policy. Some insurers have created hybrid policies that allow drivers to switch between personal and commercial coverage for that same reason.
Passenger Risks
When a passenger gets into a car arranged by a TNC, the passenger agrees to a host of terms and conditions by default. If the driver gets into an accident and the passenger is hurt, there is no guarantee that the driver’s insurance company, nor the TNC, will pay for damages. For example, the driver’s personal insurance company may say that he or she was driving for profit and, for that reason, it is not required to pay the medical bills. The passenger would need to take the driver to court for damages, which can be a costly and time-consuming process.
Safety is a concern for both the driver and for the passenger. A driver never knows the type of person about to get into the back seat. Likewise, a passenger only knows how reliable a driver is from what the TNC shares about the driver on its app.
However, no transportation service can guarantee safety, and the same concerns arise for people who take taxis. But if something happens to the passenger in a taxi, he or she may receive monetary compensation without having to go to court.
Tips for Passengers
Using a ride-sharing app is generally a safe and reliable method of transportation. Nonetheless, there are safety risks to consider. If your employees use ride-sharing apps when they travel, make sure they’re aware of the following safety tips:
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- Share your trip details with someone. Some apps allow you to share your route and driver information.
- Before you get in the car, check that the driver’s photo, name and license plate match what’s listed on the app. Never enter a car with
a driver who claims to be with a TNC and offers you a ride.
- Never share any personal information that the driver does not need to complete the ride. This includes phone numbers, as TNCs typically anonymize their passengers’ phone numbers to protect their privacy.
- Always wear your seat belt. If the car you’re riding in doesn’t have one or appears to be unsafe, instruct your driver to cancel the ride. Be sure to report it to the TNC immediately.
While the TNC insurance landscape evolves to meet the safety needs of drivers and passengers, insurance companies are taking different approaches to claims. Consult with Scurich Insurance for information on new and changing regulations and to be sure you and your employees are always covered.
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Employee Drug Use Reaches 12-year High
The positive drug test rate for the U.S. workforce was 4.2 percent in 2016, according to the Drug Testing Index (DTI) released by Quest Diagnostics. This represents a 5 percent increase over the positive rate in 2015, and the largest single-year positive rate since 2004.
The DTI analyzed over 10 million workforce drug test results from 2016 and categorized employees into three categories, including employees with federally mandated drug tests, the general workforce and the combined U.S. workforce. Here are additional details about the DTI’s findings for specific drug types:
- Marijuana—The positive test rate for marijuana increased nearly 75 percent in oral fluid testing, which is used in the general workforce. Federally mandated marijuana tests only utilize urine tests, and the positive test rate increased 10 percent in 2016.
- Cocaine—Positive test rates for cocaine in post-accident drug tests were more than twice as high as pre-employment screenings.
- Amphetamines—Positive test rates for amphetamines have risen 64 percent between 2012 and 2016 for the general workforce. Quest Diagnostics attributes this increase to the prevalence of prescription drugs, including Adderall.
In order to create a safe, productive workplace, you need to watch out for potential drug use at your business.
Political Discussions Hurt Job Performance
Many people can get worked up about politics, but a new survey from the American Psychological Association (APA) has shown that political discussions in the workplace can have a big impact on your employees’ job performance.
The APA surveyed U.S. employees about the impact of political discussions after the 2016 presidential election, and found that these discussions have a detrimental effect on job performance and relationships with co-workers. The survey found that 40 percent of employees have experienced a negative outcome following a workplace political discussion, such as reduced productivity or difficulty getting work done. Additionally, 24 percent of employees said they avoid some co-workers solely because of their politics.
According to the APA, social networks and constant news reports can cause individuals to adopt an “us versus them” political mentality, which can lead to conflict. As a result, it’s important to encourage respect, collaboration and courtesy in your workplace to ensure that your employees feel supported and remain productive.
New Executive Order Aims to Improve Cyber Security
President Donald Trump recently signed an executive order to improve the country’s cyber security and protect key infrastructure from cyber attacks. The order also emphasized the importance of strengthening the cyber security of federal agencies. According to a survey from Thales Group, a cyber security company, 34 percent of federal agencies experienced a data breach in the last year, and 95 percent of agencies consider themselves vulnerable to cyber attacks.
The executive order did not create any ongoing cyber security requirements, but instead laid out goals to assess the current state of cyber defenses and develop deterrence strategies. Here are some of the requirements of the executive order:
- Federal agencies must draft reports on their ability to defend themselves against cyber threats.
- The departments of Energy and Homeland Security must assess potential vulnerabilities to the country’s electrical grids. The executive order specifically mentions that prolonged power outages could pose a threat to national security or damage the economy.
- Various federal agencies must review the cyber defense plans of U.S. allies in order to cooperate during international cyber attacks.
Apple Creates $1 Billion Fund to Support U.S. Manufacturing
Apple, the world’s largest technology company, recently announced that it will create a $1 billion fund to support U.S. manufacturing. Although the company is based in the United States, it has faced criticism for outsourcing most of its manufacturing and taking jobs from U.S. workers.
Apple’s CEO stated that one goal of the fund was to support smart manufacturing and to create a ripple effect in industries that support smart manufacturers. For more information on the manufacturing fund, visit Apple’s website.
DID YOU KNOW?
A U.S. Court of Appeals recently barred the Federal Aviation Administration (FAA) from requiring recreational drone owners to register their unmanned aircraft. The FAA had originally required recreational drones to be registered in order to help identify aircraft that posed a hazard, and to pass on safety information to operators. However, the court’s ruling will not impact the use of drones for commercial use, as these aircraft must still be registered with the FAA before they are used.
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