Insurance is one of the most important tools available to help farmers control their unique risks. That’s why most have some form of farm liability insurance. Put simply, farm liability insurance protects farmers and their assets from lawsuits and losses caused by bodily injury and property damage. Different types of farm liability insurance can include:
• Property (premises) liability insurance—This covers injuries or property damage caused by the physical condition of your farm.
• Operations liability insurance—This covers injuries or property damage caused by some aspect of your farm operations.
• Farm product liability—This covers produce grown on your property and sold in an unprocessed condition.
• Pollution liability—This covers injuries or property damage resulting from the escape of pollutants created by your operations (e.g., pollutants related to farm or transportation equipment and activities).
• Umbrella liability—This is used as an additional layer of protection for your farm from property damage, bodily injury or lawsuits.
• Workers’ compensation—This covers accidents or occupational diseases affecting employees while on the job.
Securing adequate farm liability insurance coverage can become overwhelming, considering the emergence of new farming technology and other products with higher levels of risk. For example, farm drones—whether piloted or unmanned—may require additional insurance. What’s more, certain agricultural pesticides—such as dicamba—may necessitate extra coverage, seeing as these substances could potentially create run-off issues and affect neighboring properties.
Although your farm’s risk exposures may change and evolve, what’s certain is the importance of ensuring you’re covered for any risk. When evaluating your farm liability insurance needs, some important parts of the coverage to review are:
• Who’s covered—If your policy includes employer liability or workers’ compensation insurance, verify coverage for seasonal and short-term employees. Also, take note of whether independent contractors—such as custom farmers or sprayers—are covered.
• If the policy covers accidents on the road—This includes accidents involving farming equipment, as well as trucks or vehicles, used as part of your operations.
• What is excluded from the policy—Review your policy exclusions and purchase any necessary riders to provide full coverage for your farm’s needs.
Your farm is your way of life, and that’s why it’s important to annually review your farm liability insurance and purchase any needed options to minimize insurance gaps and reduce your risk exposures. For additional insurance resources, contact us today.