Farm Insurance

Animal Collision Coverage/Accidental Shooting of Livestock/Electrocution of Livestock/Attack on Livestock- Sold together, or separately depending on the carrier, offers coverage for death caused by the applicable accident. Different terms and limits are available, depending upon the carrier and endorsement. 

Contractual Liability- For protection if the farmer has contracts with a 3rd party to do specific farm work, such as spraying, irrigation, veterinary work, etc.

Disruption of Farm Operations or Income Coverage- If you have a covered loss which disrupts your income, this endorsement may provide for the resulting income loss.

Drone Coverage- Can cover liability for damages arising out of the use of a drone for farming purposes.

Equipment Breakdown- Covers the perils of mechanical, electrical and pressure systems breakdown. Usually covers the farm dwelling and its contents along with barns, stables, other structures and farm personal property.

Equipment Rented or Leased from Others- Coverage can provide various protections for equipment that contractors rent or lease from third parties.

Equipment Schedule- Inventory of machinery and equipment used in operation of the farm and homestead

Farm Personal Property vs Personal Property- Personal Property encompasses the property within one’s farm home, such as their clothing, furniture, personal electronics, etc. Farm Personal Property covers all the clients farm related personal property, including feed, farm tools, growing or feeding equipment, tack, etc.

Inland Marine on semen tanks and contents (portable and stationary)

Livestock Schedule- Inventory of livestock on the farm

Livestock Suffocation- Can cover the cost of livestock lost due to suffocation resulting from inhalation of pit gases, and electrical and mechanical failures of ventilating equipment in your confinement buildings.

Coverage for a loss due to an animal waste pollution event, such as a tank or containment dike rupturing, application of animal waste onto your land as fertilizer, or explosion.

Directors & Officers coverage- Protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.

Employment Practices Liability (EPLI)- For farms with employees, additional protection may be needed for lawsuits for wrongful dismissal, breach of employment contract, employment-related misrepresentation, or the violation of discrimination or workplace harassment laws. It provides reimbursement for defense costs incurred in defending employment practices.

Workers Compensation- Provides coverage for your farm or ranch employees who are injured on the job. This coverage helps to limit your financial responsibility for the medical expenses that can be incurred due to an employee’s injury. It also helps ensure you’ll be able to continue operations if an employee is injured.

Food Contamination- If business is forced by the Board of Health or another government agency to shut down due to the discovery (or suspicion) of food contamination, this coverage can cover expenses such as: cleaning equipment as required by the governmental authority, cost to replace food actually or suspected to be contaminated, costs of medical tests and vaccinations for employees (unless covered by WC), loss of business income beginning 24 hours after you receive the notice of closure, and additional advertising expenses incurred to restore your farm’s reputation. Typically expenses are subject to an annual aggregate limit. The endorsement does not typically cover government-imposed fines or penalties.

Food Spoilage- Can cover spoilage of food caused by disruptions of power caused by a covered claim.

Products Liability- Farm policies typically extend liability coverage only for produce grown on the farm and sold in an unprocessed condition. If processing farm products, a commercial liability package policy may offer the additional coverage needed if you’ve expanded into commercial risks.

Product Recall- Covers expenses associated with recalling a product from the market. Cover costs such as customer notification, shipping costs, and disposal costs.

Whenever the public comes onto farm property for the purposes of eating, picking, volunteering, or entertainment, this will likely fall under the category of Agritainment or Agritourism. Below are a list of some of the possible exposures and coverages that will likely need to be discussed or applied: 

Fairs/Festivals/Amusement Style Rides- These require a specific policy, typically sold through an E&S carrier. It is important to find out and disclose this risk to the farm carrier, and find a place for this section of the clients farm operations.

Fireworks Liability- Covers injuries, property damage, etc in the event of an accident caused by Fireworks.

Liquor Liability- protects businesses that manufacture, serve, or sell alcohol. The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder.

Pick Your Own- Can cover the exposures related to allowing clients to pick their own fruits or vegetables on premises, such as pumpkin, raspberry, or apple picking. Some carriers will not write this type of exposure, and will exclude this risk on most farm policies, without the addition of the endorsement.

Sexual Abuse and molestation– Can cover the actual, alleged, or threatened abuse, molestation or exploitation by anyone of any person while in the care, custody or control of any insured. The term “bodily injury” includes mental anguish or emotional distress.

Tourism or Tour Guide coverage- For farms operating tours of the farm, such as those operating courses to teach others farming or homesteading techniques.

Transmissible Pathogens/Communicable Disease Coverage (example e-coli due to animal contact)- Can cover business interruptions, liability lawsuits, property damage due to transmissible pathogens or communicable diseases. It may provide blanket coverage for pandemics and other outbreaks, or provide coverage only for a specific disease like COVID-19 or Ebola.

Volunteer Accident Coverage- Can protect an organization’s volunteer workforce for medical costs associated with an accidental injury incurred while working on behalf of the organization. An organization’s employees are covered under Workers Compensation, but its volunteers are not.

Liquor Liability- Can protect businesses that manufacture, serve, or sell alcohol. The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder.

Sexual Abuse and molestation- Can cover the actual, alleged, or threatened abuse, molestation or exploitation by anyone of any person while in the care, custody or control of any insured. The term “bodily injury” includes mental anguish or emotional distress.

Special Events Coverage- Coverage for weddings, family reunions, photography sessions, or other one day special events that may occur on the premises.

Coverage for commercial farm trucks and personal automobiles. Coverage provides physical damage such as comprehensive and collision, as well as bodily injury and property damage liability coverage.

Most policies will not cover off-premises recreational use of an ATV, but a coverage endorsement is available if needed.