Aerial Applicators Insurance Michigan Policy Information
Aerial Applicators Insurance Michigan. Aerial applicators not only only have a vital job, but also a truly exciting one. Not only can companies engaged in agricultural aviation dust crops with fertilizer and pesticides to protect and help them thrive, the practice of sowing seeds this way has also increased in popularity in recent years.
Furthermore, cover crops that encourage biodiversity and improve soil health can be laid down more easily, and with less damage to the environment, by means of aerial application.
Crop dusting, now more commonly referred to as aerial applications, uses specially-equipped aircraft to spread fertilizers and pesticides on growing crops. Similar operations include spraying fire retardants on burning forest areas or using the aircraft for aerial photography or mapping.
Crop dusters are regulated by both the Federal Aviation Administration (FAA) and the Environmental Protection Agency (EPA). Drones, or unmanned aerial vehicles (UAVs), are being increasingly used for crop dusting applications due to their small size, increased accuracy, and lower cost.
While there is no doubt that MI aerial applicators play a crucial role in the global economy by supporting industrial-scale agriculture, these companies are also subjected to a range of serious risks.
To prepare themselves for the possibility of unexpected circumstances, aerial applicators should always arm themselves with the appropriate insurance coverage. What might that entail? To discover more, keep reading.
Aerial applicators insurance Michigan protects crop dusting operations from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Why Do Michigan Aerial Applicators Need Insurance?
Your aerial application business may be unique, but it faces some of the same risks common to all other companies in addition to industry-specific hazards.
Despite all the steps you take to carry your tasks out safely and responsibly, and no matter how business-savvy you may be, aerial applicators need a comprehensive insurance plan to help them recover in the event that they are hit by a major peril.
By carrying the right insurance, you can protect your company from massive costs that would otherwise arise in the event that an aircraft required sudden unscheduled maintenance.
If a third party sues you alleging that your company caused harm to the environment, insurance plays an essential role in reducing your legal costs, and the same holds true in cases where clients claim that you did your job negligently.
Like other companies, aerial applicators also face universal risks - acts of nature, like earthquakes or wildfires, can damage or destroy your commercial premises as well as causing costly business interruptions. Accidental fires, and criminal acts like theft and vandalism, can also impact your company's facility.
Carrying aerial applicators insurance Michigan might not be able to prevent disasters, but it will help you cover their costs, so that your business continues to thrive.
What Type Of Insurance Do MI Aerial Applicators Need?
Not only does every branch of commerce have unique insurance needs, even two companies engaged in very similar activities will have greatly varying requirements.
That is because factors such as the jurisdiction within which your business is based, the exact scope and nature of your activities, your number of employees, and the value of the equipment you use all influence the types of coverage that will best protect your company.
A commercial insurance broker is best suited to offer advice pertaining to your individual company, and as MI aerial applicators are in an extremely specialized field, you would be encouraged to partner with an insurer who is deeply familiar with your profession.
Having said that, crop dusting operations should certainly have the following kinds of aerial applicators insurance Michigan on their radar:
- Commercial Aircraft: Also called commercial aviation insurance, this set of policies covers the costs that may arise from catastrophic malfunctions and air crashes, as well as urgent maintenance due to malfunctions, and even damage done to aircraft while they are on the ground, such as in acts of nature like lightning strikes, or due to vandalism. Comprehensive aviation insurance will be mandatory for companies in your field.
- Commercial Property: This type of insurance protects you from financial hardship if your commercial premises are impacted by perils like theft, vandalism, or acts of nature. It generally covers your physical building and its contents, but outdoor properties may also fall under commercial property insurance.
- General Liability: Should a third party file a lawsuit alleging that your company was responsible for causing property damage or bodily injury, this form of aerial applicators insurance Michigan coverage takes care of a substantial portion of your legal costs.
- Environmental Liability: If a third party alleges that your company's activities, such as crop dusting, caused environmental pollution, the legal costs can be exorbitant. This form of insurance helps minimize the damage.
- Workers' Compensation: These policies are designed to cover the costs that can result if an employee sustains a work-related injury or illness, whether a fracture or an illness linked to exposure to hazardous substances. The employee's medical costs and any lost income are both covered.
Crop dusters should be aware that these types of aerial applicators insurance Michigan are only examples of the kinds of coverage they may need. To ensure that your insurance plan adequately protects you, talk to a commercial insurance broker.
MI Aerial Applicators' Risks & Exposures
Aircraft hull exposure covers the aircraft and its equipment. Pilot error, including failure to consider weather conditions, can result in a costly accident. Pilots must adhere to all FAA regulations, including the need for ongoing physical examinations.
All aircraft and drones must be maintained according to manufacturers' specifications, and records of such maintenance kept in a central location.
Aircraft liability exposure covers damage to cargo and the property of others. Pilots must meet all FAA regulations, including current licensing, for the aircraft. They must participate in regular training activities to maintain skills.
Aircraft and drones must be maintained and records kept of the maintenance. Crash landings can result in a loss to the entire cargo.
Premises liability exposure is limited on-premises due to lack of public access. Fire in the fueling area could spread to surrounding hangars or neighboring buildings.
Off-premises exposures can be severe due to the application of chemicals over a wide area. Before a field is sprayed, the pilot should verify its identity and restrict human and livestock access during spraying. Losses can result from overspray, spraying the wrong field or area, improper application of the chemicals, use of the wrong chemicals, and improper mixture of the chemicals.
Products liability exposure may be limited if the chemicals are applied as received from the manufacturer. Application of the wrong chemical, wrong amount or wrong concentration can result in crop failure.
Environmental impairment exposures are very high due to the handling, storage, distribution or disposal of the chemicals used in aerial applications. Fueling of aircraft presents another environmental exposure as leaking fuel may contaminate the air, ground or water.
Storage and disposal procedures must comply with all Environmental Protection Agency (EPA) requirements. If there are fuel tanks on premises, a UST policy may be needed.
Workers compensation exposure is substantial. The lifting, handling, and application of the chemicals can result in injuries such as back sprains and strains or inhalation of toxic substances. Fire and explosion are a constant concern in a fueling area and from repair operations that include welding or painting.
Repair operations involve significant chances for injury due to slips and falls, burns, falling pieces, and working in awkward positions. Safety equipment should be required. Propellers and other moving parts can injure an employee during operation. All controls must be in place and carefully monitored. Crash exposure may be high if the crop dusting aircraft is used in remote rescue or in firefighting operations.
Property exposures are high due to the fueling, refueling, or repair done within hangars. If flammable chemicals are used, they should be stored in locked fireproof cabinets away from fueling operations. Smoking should be prohibited.
Outside equipment and fixtures can be damaged by wind, elements, and collision with aircraft or vehicles. Aircraft used for crop dusting could be potential targets for terrorist attacks.
Complete plans must be in place to deter and detect terrorism activities. Business interruption exposure could be high unless backup aircraft is available.
Crime exposure is from employee dishonesty and money and securities. The exposure increases without background checks on all employees. Monetary transactions must be monitored and audited on a regular basis to prevent employee theft. Money-handling responsibilities should be separated, with no employee handling both receivables and disbursements.
Inland marine exposure is from accounts receivable if there are billings, computers, and valuable papers and records for customers', regulatory, spraying, and suppliers' information. Duplicates should be made and kept off premises for easy replication after a loss.
There may be mobile equipment used for communication, markers, and shields that should be covered on a mobile equipment form.
Commercial auto exposure can be very high if the operation transports the chemicals applied during crop dusting. If there are owned vehicles, all drivers must have appropriate licenses and acceptable MVRs. Vehicles must be well maintained with records kept in a central location.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Aviation Insurance
Learn about aircraft and aviation liability insurance - a specialized form insurance that provides coverage for hull losses as well as liability for passenger injuries, environmental damage and third-party damage caused by aircraft accidents.
- Insurance Aviation Terms Glossary
- Aerial Applicators
- Flight Schools
- Hot Air Balloon
- Unmanned Aerial Vehicles (UAV) Drone
Aviation policies often have to be written so that they cover the liability of the owner and the operator relating to bodily injury to passengers or to people who aren't passengers, as well as for property damage.
The policy will cover medical costs, including the loss of income, paid to any passengers who are suffering from permanent or total disability but without proving negligence.
In other words, you can consider aviation insurance a sort of liability insurance for the aviation industry.
Aviation insurance often covers various types of risks such as:
Aircraft Hull Insurance - It covers the aircraft itself in the event of accidental damage, regardless of where it might happen. Spares - The policy will cover any damage or the loss of spare parts relating to the aircraft or the engine if they aren't attached to them.
Passenger Legal Liability Insurance - The policy will cover both the airline and the operator in the event passengers face bodily harm, death, or loss of their baggage while in the custody of the airline or its operator.
Third-Party Legal Liability - The policy will cover the airline and the operator when there is damage to a third-party property on the ground for which they may be held liable.
Cargo Liability Insurance - The policy covers damage or loss to the consignments that are carried by the insured airline. The shipper and consignees will claim against the carrier; that's when the insurer will cover the airline. The policy also covers post office mail that is often shipped via airline operators.
Minimum recommended coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Communication Equipment Floater, Computers, Contractors’ Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-Owned Auto, Workers Compensation, Aircraft Hull, Aircraft Liability & Hangarkeepers Legal Liability.
Other coverages to consider: Earthquake, Equipment Breakdown, Flood, Cyber Liability, Employment-related Practices, Underground Storage Tank, Business Automobile Liability and Physical Damage and Stop Gap Liability.
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