New Study Demonstrates the Dangers of Talking While Driving
It’s commonly known that smartphones, entertainment systems and other electronics can be a dangerous distraction to drivers. However, a new study from the University of Iowa found that simple conversations can also cause unsafe driving conditions.
The study used eye tracking equipment to analyze where subjects were looking and how long it took them to focus on a new object. Some subjects were also asked true or false questions at the same time in order to simulate a simple conversation. Data collected from the study found that subjects who answered questions took twice as long to focus on a new object than those who were asked no questions.
Although engaging in conversation seems simple, it involves a number of complex tasks that the brain must handle simultaneously. Even if the topic of conversation is straightforward, the brain has to absorb information, overlay what a person already knows and prepare to a construct a reply. And, although this process is done extremely quickly, it can also slow down reaction times and lead to a dangerous accident on the road.
The best way to keep your employees safe while driving is to encourage them to eliminate or turn off all potential distractions, including their cellphones and any hands-free accessories they may use to make a call. You can also consider including language about safe driving practices in your workplace safety policies.
Preventing Workplace Violence
As reports of shootings and other violent incidents become more common, workplace violence is a topic than no business can ignore. According to the U.S. Bureau of Labor Statistics, workplace homicides rose 2 percent in 2015, the latest year for which data is available. Additionally, the number of workplace shootings increased by 15 percent.
The best way to address potential acts of violence at your business is to be prepared to act before, during and after an act of violence occurs. Here are some programs you can use to ensure the safety of your employees and customers:
- Pre-employment screenings-Background checks can help identify candidates who have violent histories.
- Security-Security systems can ensure that only employees have access to certain areas.
- Alternative dispute resolutions-Techniques like facilitation and mediation can help solve a conflict before it escalates.
- Threat assessment teams-A designated team can work with management to assess the potential for violence and develop an action plan.
Congress Considers Flood Insurance Reforms
The National Flood Insurance Program (NFIP) is one of the few ways to get insurance coverage for flood risks, and the program is set to expire later this year. However, Congress is currently examining a number of possible changes to the NFIP before it’s reauthorized.
One of the most important topics regarding the NFIP is its financial stability. The program is currently $24 billion in debt as a result of rising claims costs and severe weather events, and some lawmakers believe that the program needs substantial reforms in order to remain viable.
The following are some of the changes that are being considered to the NFIP:
- Making private flood insurance more available to consumers
- Limiting payments to properties that flood repeatedly
- Reducing taxpayer subsidies for flood insurance
- Creating financial incentives for flood mitigation
DOL Withdraws Joint Employment and Worker Classification Guidance
The U.S. Department of Labor (DOL) recently withdrew administrative interpretations regarding joint employment and the classification of workers as employees or independent contractors. These withdrawals can have significant consequences on legal protections for employees and eligibility for benefits.
- Worker classification-Employers will need to satisfy tests established by the courts-such as the economic realities test-when classifying workers.
- Joint employment-Joint employment can only be established when an employer has direct control over another employer’s workplace.
To learn more about what these withdrawals could mean for you, contact Scurich Insurance and ask to see our comprehensive compliance bulletins, “DOL Withdraws Joint Employer Guidance” and “DOL Withdraws Worker Classification Guidance.”
Read more
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.
Read more
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.
Read more
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:
-
- 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.
Read more
Home Maintenance for the Summer
Keeping up with seasonal repairs and upkeep not only shows pride of ownership, but can reduce the risk of costly and preventable home expenses. Prepare your home for the summer with the following considerations:
Home exterior
- Check all window and door locks to make sure they are secure. Open and close them, and apply lubricant when they are hard to open.
- Inspect your roof and gutters, clean out gutter debris and check shingle integrity.
- Inspect your home’s foundation, sealing cracks and levelling yard depressions with compacted soil.
- Check wooden structures, such as decks and steps, for rotting, loose wood or exposed nails.
Home interior
- Hire a qualified heating, ventilation and air conditioning (HVAC) contractor to tune up your air conditioning unit.
- Examine electrical outlets and cords for potential fire hazards, such as frayed wires.
Garage
- Examine your garage door to ensure that it is in proper working order.
- Declutter by reviewing the contents of your garage. Donate or dispose of items you no longer use or need.
Driveways and walkways
- Inspect your pavement for cracks and holes, and remedy them. This can go a long way in preventing accidental slips, trips and falls.
Painting Safety Precautions
Summer is the perfect time to brush up on painting projects in your home. While paint can beautify a room, it can also be harmful to your health.
Stay safe while painting this summer with the following tips:
- Test for lead with a lead-testing kit—especially if your home was built before 1978.
- Wear a respirator, and open windows and doors to ventilate the room.
- Wear protective gloves and clothing.
- Cover all exposed outlets with painter’s tape.
- Inspect your ladder’s integrity before use, if applicable. Make sure to always have at least three body parts in contact with the ladder at all times.
- Store paint by replacing the lid firmly and storing the can upside down to block air entry.
ATV Safety
As warmer weather approaches, more people will be using all-terrain vehicles (ATVs) for recreation. While riding an ATV is a fun activity, these vehicles can be extremely dangerous. In fact, every year, there are over 300 ATV-related deaths across the United States.
Here’s how to keep yourself and your family safe while operating an ATV:
- Read the operator’s manual and attend ATV instruction classes before riding.
- Wear gloves to reduce vibration pressure and to improve grip.
- Wear boots to maintain balance and control, protect feet and legs from debris, and maintain sound footing.
- Wear a long-sleeve shirt and pants to avoid burns and scratches.
- Always be aware of your surroundings. Watch out for wildlife, pedestrians, other ATVs and hazards like rocks, branches and unstable surfaces.
- Drive at safe speeds, taking weather conditions and the terrain into account.
- Never carry additional passengers, or operate an ATV while under the influence of drugs or alcohol.
- Always ride the right size ATV by following the manufacturer’s recommendations.
Reducing Choking Hazards for Small Children
Choking occurs when the brain goes without oxygen for more than four minutes, causing brain damage and death, and is the leading cause of death in infants and toddlers.
If you are the parent or guardian of a small child, it is your responsibility to protect your child from danger. Foods such as hot dogs, whole grapes, nuts, raisins, hard candies and popcorn can be potential choking hazards. Other choking hazards include household items such as latex balloons, coins, small toy parts and marbles.
Protect your child from choking with the following tips:
- Mash foods so they can be chewed more easily.
- Instruct children to chew food before swallowing it.
- Make sure children sit upright while eating.
- Always supervise your child during mealtime.
- Do not give hard foods to children under the age of 4.
- Avoid giving children toys with small parts, and keep small household items out of reach.
Make sure to also learn the Heimlich maneuver for infants, as the procedures for a choking infant are different from those of an adult. Learn the steps here.
Read more
On May 15, 2017, the Centers for Medicare and Medicaid Services (CMS) announced significant changes to the Small Business Health Options Program (SHOP) Exchanges under the Affordable Care Act (ACA). Under these changes:
- Employers would be able to obtain an eligibility determination for SHOP participation through www.HealthCare.gov.
- Employers would enroll directly with an insurance company offering SHOP plans, or with the assistance of an agent or broker registered with the Exchange, instead of enrolling online at www.HealthCare.gov.
CMS plans to issue regulations implementing these changes, effective Jan. 1, 2018.
ACTION STEPS
These changes apply in federally facilitated SHOPs (FF-SHOPs) and state-based SHOPs using the federal platform. State-based SHOPs could continue to provide online enrollment or adopt the federal direct enrollment approach.
SHOP Exchanges
The ACA required each state to establish an online competitive marketplace, called an Exchange, where individuals and small businesses may purchase health insurance, beginning in 2014. The SHOP is the Exchange component for small businesses.
Online enrollment in FF-SHOPs was previously delayed until Nov. 15, 2014, as a result of problems with implementation. Prior to Nov. 15, 2014, employers had been required to use a direct enrollment process, using an agent, broker or insurer to enroll their employees in FF-SHOP coverage for 2014 (similar to how most small employers previously got insurance).
Many state-based SHOP Exchanges chose to offer online enrollment earlier than the FF-SHOP, in 2014.
Ending Online Enrollment in FF-SHOPs
The changes announced by CMS will effectively end online enrollment in FF-SHOPs. Under the intended approach, however, employers would still obtain a determination of eligibility for SHOP participation by going to www.HealthCare.gov, which allows eligible employers to access the Small Business Health Care Tax Credit.
According to CMS, these changes are being made to promote insurance company and agent/broker participation and make it easier for small employers to offer SHOP plans to their employees, while maintaining access to the Small Business Health Care Tax Credit. CMS noted that insurance company and agent/broker participation, as well as overall enrollment in the FF-SHOP Exchanges, has been lower than anticipated and, at its current pace, is unlikely to reach expectations.
Impact for Employers Currently Using the SHOP Exchange
Employers can sign up for SHOP coverage taking effect in 2017 on www.HealthCare.gov until Nov. 15, 2017. In addition, employers that have enrolled in SHOP coverage for the 2017 plan year would be able to continue using www.HealthCare.gov in 2018 for enrollment and premium payment, until their current plan year ends and it’s time to renew.
States operating state-based SHOPs would be able to provide online enrollment, or could opt to direct small employers to insurance companies and SHOP-registered agents and brokers to directly enroll in SHOP plans.
IMPORTANT DATES
January 1, 2018
CMS plans to issue regulations ending online enrollment in FF-SHOPs, effective in 2018.
November 15, 2017
Employers can sign up online for SHOP coverage taking effect in 2017 until Nov. 15, 2017.
Read more
