Tag: Risk Protection

Will 2016 Be a Record Year for Motor Vehicle Fatalities?

Are you planning to hit the road one last time before summer comes to an end? If so, we have some advice—BE CAREFUL!

According to the National Safety Council (NSC), the number of motor vehicle deaths from January through June 2016 is 9% higher than during the first half of 2015. At this pace, the number of motor vehicle fatalities in 2016 could exceed 40,000, which would be the highest in nearly a decade.

Estimates for the upcoming Labor Day holiday weekend are equally frightening. The NSC estimates 438 traffic fatalities, the most since 2008. The NSC also estimates 50,300 nonfatal medically consulted injuries, which are injuries serious enough that a medical professional was consulted.

According to the NSC:

  • The estimated annual population death rate is 12.9 deaths per 100,000, which is an 8% increase from 2015.
  • The estimated annual mileage death rate is 1.3 deaths per 100 million vehicle miles traveled, which is 8% increase from 2015.
  • The estimated cost of motor-vehicle deaths, injuries and property damage during the first half of 2016 was $205.5 billion.

States with the most traffic deaths:

  • Texas 1,824 (+11%)
  • California 1,702 (+9%)
  • Florida 1,590 (+10%)
  • Georgia 701 (+7%)
  • North Carolina 668 (+5%)

States with the largest percentage increase from 2015:

  • Vermont +63%
  • New Hampshire +61%
  • Connecticut +45%
  • New Mexico +43%
  • Idaho +37%

Why is 2016 on pace to be the deadliest year in nearly a decade? One reason could be lower gas prices. The NSC notes that gas prices during the first six months of 2016 were on average 16% lower than in 2015 and that this helped produce a 3.3% increase in cumulative vehicle mileage through May. Another reason could be that people continue to engage in risky driving behavior, like speeding, drunk driving, fatigued driving, distracted driving (including cell phone use) and aggressive driving.

Though some accidents just happen , most motor vehicle accidents can be avoided. In addition to avoiding risky driving behaviors, here are some tips from the National Highway Traffic Safety Administration that can decrease the chances of getting into an accident.

  • Plan trips ahead of time.
  • Wear your safety belt—and wear it correctly.
  • Drive at the speed limit. It’s unsafe to drive too fast or too slow.
  • Be alert! Pay attention to traffic at all times.
  • Keep enough distance between you and the car in front of you.
  • Be extra careful at intersections. Use turn signals and to look out for people and cars.
  • Check blind spots when changing lanes or backing up.
  • Most of the time, having the right auto insurance coverage is all you need to recover after an accident. That’s clearly not the case with fatalities. Everyone must do their part to make sure 2016 is not a record year for motor vehicle fatalities.
  • Please contact us if you have questions about your auto insurance or would like a quote.
  • To receive regular updates about developments which may affect your business, subscribe to Setnor Byer Insurance &Risk’s weekly risk management news brief.

Best Practices for Avoiding (Most) Data Security Breaches

Did you know that 93% of data breaches could have been avoided? Everyone should be interested in this somewhat shocking statistic because cyber threats and data security remain primary concerns among virtually every organization, regardless of size, industry or purpose. It’s true that some cyber threats simply cannot be avoided, which is why businesses should do everything in their power to avoid those that can.

The first step is recognizing and addressing some of the more common avoidable causes of security breaches and data loss. According to the Online Trust Alliance, these include:

  • Employee errors (lost data, files, drives or devices and improper disposal);
  • Accidental disclosures (via email and public postings);
  • Business Email Compromises (socially engineered exploits like phishing and whaling);
  • Unencrypted data and disclosed keys;
  • Improperly configured systems, networks and devices;
  • Failing to update or patch systems against known vulnerabilities; and
  • Using end of life devices, operating systems and applications.

The next step is implementing security processes and procedures. When it comes to defending against cyber threats and ensuring data security, business-specific circumstances and operations typically determine which essential preventative measures are most likely to be effective. Nevertheless, there are various baseline security best practices recommended by the Online Trust Alliance that most businesses can easily implement and manage, such as:

  • Encrypting data at rest, in storage and in transit. Without the corresponding cryptographic keys, encryption renders data useless to hackers. It may also exempt businesses from having to comply with various state data breach notification laws.
  • Managing passwords. Use password managers to generate and store passwords. Multi-factor authentication (smartcards and PINs in addition to passwords) can also be required to access sensitive information or accounts.
  • Adopting the least-privilege user account (LUA) strategy. User accounts should be given the least amount of privilege (access) required to perform their necessary functions.
  • Auditing security measures. Periodically conduct penetration tests and vulnerability scans to identify and mitigate vulnerabilities.
  • Monitoring emails. Require email authentication of all inbound and outbound mail servers to detect malicious and spoofed emails.
  • Managing mobile devices. Require authentication to unlock devices, lock out devices after numerous failed login attempts, encrypt communications and storage, and enable remote wiping of mobile devices that are lost or stolen.
  • Managing wireless networks. Only authorized wireless devices should be given network access. “Guest” network access should be kept on separate servers.
  • Implementing a data breach response plan. Conduct a post-mortem after every incident and make necessary adjustments. Practice by regularly testing response plans and personnel.

Since it’s impossible to protect against every cyber threat or prevent every data breach, the final step is obtaining Cyber Liability Insurance. According to PricewaterhouseCoopers’ 2016 Global State of Information Security Survey, 59% of businesses surveyed purchased cyber security insurance to mitigate the financial impact of data breaches and cyber incidents when they do occur. Businesses are increasingly realizing that what can’t be protected or prevented must be insured.

Unlike traditional business insurance policies, Cyber Liability and Security Breach (Cyber Perils)Insurance policies protect against privacy injuries, such as identity theft, and cover the cost of complying with data breach notice laws. Given the complexity of the risk and the absence of one-size-fits-all coverage, an experienced insurance agent should be consulted to ensure that adequate coverage is obtained.

Please contact us if you would like more information about insurance specifically designed to protect against cyber threats.

Additional information is also available in our weekly Risk Management Newsletters.