Farm Liability Coverage: Protecting Your Business

As a farmer, you're likely no stranger to hard work and long hours. However, accidents can happen, and that's where farm liability coverage comes in.

Farm liability coverage can help protect your business from financial losses due to accidents or injuries on your property. For example, if a visitor is injured while helping with a harvest, your insurance can cover medical expenses and other related costs.

Accidents can happen in a split second, and the consequences can be severe. According to the article, "the average cost of a lawsuit in the agricultural industry is around $500,000."

Having farm liability coverage can give you peace of mind, knowing that you're protected in case of an unexpected event.

Farm liability coverage is a contract between the insurance company and the farmer, outlining the mutual obligations and insurance coverage details. Understanding the contract is crucial to ensure sufficient coverage in case of an accident.

Every liability insurance policy contains details about the parties involved, the substance of the coverage, and any exclusions. Not understanding these details may leave you underinsured.

Liability insurance covers accidents that occur on the farm due to the farmer's negligence, as well as accidents that happen off the farm premises. Accidents on roads may also be covered, but the insurance agent can confirm if the vehicle is considered part of the farm business.

Farm liability insurance can protect you from bodily injury claims and accidental property damage claims resulting from your farm or ranch operation. The insurance can also cover visitors to your farm.

Accidents are defined as unexpected events or circumstances without deliberate intent, and negligence is often the cause of liability. However, the definition of "unexpected" can be uncertain, and strict liability doctrine may apply in cases of ultra-hazardous activities.

Berkley understands the unique exposures facing farm and ranch owners, including commodity markets, crop yields, livestock accidents and the uncertainty that weather adds to your operation.

Our team of specialists can help provide the right insurance products and services to help minimize your risks.

Liability insurance policies specify whose actions are covered, and the policyholder is always included.

The policyholder's relatives are frequently covered, but it's wise to confirm this, and it's also important to understand how seasonal and short-term employees will be treated in the event of an incident.

You should disclose the nature of your farming operation and confirm the coverage of all farm employees with your farm insurance agent.

For example, if your small farm had two employees when applying for insurance but grew to seven employees, you should communicate this growth to your insurance agent.

It's essential to be candid with the insurance carrier when first obtaining the policy, when renewing the policy, and any time there is a change in the business that might increase the insurance company's risk or change the premium charged.

Workers compensation insurance provides greater protection for both you and your employees compared to farm employers liability, which is very limited protection.

If you hire part-time or full-time labor, we recommend the purchase of workers compensation insurance.

If you're looking for extra protection, an umbrella policy can provide liability protection coverage over and above the limits on your farm or ranch liability policy for lawsuits and liability judgments.

This type of coverage can play an important role in your farm or ranch liability insurance strategy, giving you peace of mind in case of unexpected events.

Umbrella coverage can provide liability protection beyond the limits of your farm or ranch liability policy.

This extra layer of protection can help shield your assets in case of lawsuits or liability judgments.

An umbrella policy is designed to kick in when your primary policy's limits are reached, offering peace of mind for farm and ranch owners.

It plays an important role in your liability insurance strategy.

If you have a roadside fruit stand or a produce stand, general liability coverage can protect you against accidents that occur to customers.

General liability coverage can also apply to farmers' markets, so be sure to check your policy if you sell your products at one.

Dog breeding and horse training are other examples of incidental business activities that are covered by general liability insurance.

Firewood sales and bait shops are also considered incidental business activities that can be protected by general liability coverage.

Roadside fruit stands and produce stands are common examples of incidental business activities that can be covered by general liability insurance.

Farm owners face unique risks, including commodity market fluctuations, crop yield uncertainty, and livestock accidents. Specialists at Berkley understand these risks and can help provide the right insurance products.

Livestock care, custody, and control can be a significant liability concern. This includes protecting against liability for animals in your care, such as horses or cattle, and also for injury you may cause to them.

Berkley's insurance business can help minimize risks for farm owners, including those related to commodity markets, crop yields, and livestock accidents.

Pollution can be a major concern for farmers, and it's essential to be aware of the risks involved. A tank or containment dike rupturing can lead to a significant loss due to animal waste pollution.

Animal waste can be used as fertilizer, but applying it to your land without proper precautions can cause more harm than good. An explosion can occur if animal waste is not handled correctly, leading to devastating consequences.

Protecting your operation from pollution events is crucial, and having the right insurance coverage can provide peace of mind. Farm pollution liability coverage can shield you from financial losses in the event of a pollution incident.

Our team of specialists at Berkley understands the unique risks facing farm and ranch owners, including commodity markets and crop yields.

Farmers need to be aware that some activities on their land can be considered ultra-hazardous, making them liable for damages no matter how much care was taken.

Using, transporting, storing, or handling of hazardous agricultural chemicals can be considered ultra-hazardous, making farmers strictly liable for damages.

In some states, aerial application of crop pesticides and other chemicals is considered an inherently dangerous activity, making farmers strictly liable even if they took all necessary precautions.

Farmers need to be aware of the regulations in their state regarding aerial crop spraying, as violating these regulations can constitute evidence of negligence.

In Arkansas, for example, violating aerial crop spraying regulations can be used as evidence of negligence, and landowners can be held liable for the negligence of crop sprayers.

Protecting yourself against liability related to livestock care is crucial. You're not just responsible for the animals themselves, but also for any damage they might cause to others.

Having animals that belong to others in your custody can lead to liability. This includes boarding horses, finishing cattle, or even artificial insemination operations.

As a livestock owner, you have a duty of care to use reasonable care while handling the animals. Violating this duty can lead to negligence claims.

Protecting against negligence is essential, especially in high-risk activities like artificial insemination. Compliance with codes and regulations may not be enough to avoid a negligence claim based on a general duty to act reasonably.

The death of livestock can also lead to liability, especially if it's caused by a vehicle not operated by your farm. This is where animal collision coverage comes in, which covers death of livestock when hit by a vehicle on a public road.

Having an unlicensed recreational vehicle on your farm can lead to serious consequences, especially if it's involved in an accident off premises. This is why it's essential to understand the risks and liabilities associated with unlicensed ATV's and UTV's.

Farm liability can extend to off premises coverage of these vehicles, which means you could be held responsible for damages or injuries that occur elsewhere. This is a significant concern for farmers who use these vehicles for work or recreation.

If you're caught operating an unlicensed ATV or UTV, you could face fines and penalties, which can be a financial burden for any farm.