Aerial Applicators Insurance Policy Information
Aerial Applicators Insurance. 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 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 protects crop dusting operations from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked crop dusting insurance questions:
- What Is Aerial Applicators Insurance?
- How Much Does Aerial Applicators Insurance Cost?
- Why Do Aerial Applicators Need Insurance?
- What Type Of Insurance Do Aerial Applicators Need?
- What Does Aerial Applicators Insurance Cover & Pay For?
What Is Aerial Applicators Insurance?
Aerial applicators insurance is a type of insurance specifically designed for businesses and individuals who use aircraft to apply pesticides, fertilizers, and other agricultural products to crops and other areas. This type of insurance typically covers the aircraft, pilots, and any damage or loss that may occur as a result of the aerial application of these products.
It may also provide coverage for third-party liability, such as injury or damage to property caused by the application of the products.
How Much Does Aerial Applicators Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small aerial applicators operations ranges from $77 to $119 per month based on location, number of aircraft, revenue, claims history and more.
Why Do Aerial Applicators Need Insurance?
Aerial applicators need insurance to protect themselves and their businesses from financial losses that may occur due to accidents, damages, or third-party liabilities. Some common risks that aerial applicators may face include:
Damage to aircraft or equipment: Aerial applicators may experience damage to their aircraft or equipment due to collisions, mechanical failures, or weather events. Insurance can help cover the costs of repairs or replacements.
Bodily injury or property damage: Aerial applicators may cause bodily injury or property damage to third parties during their operations. Insurance can help cover the costs of medical treatment or legal fees.
Environmental liabilities: Aerial applicators may inadvertently cause damage to the environment, such as contaminating water sources or harming wildlife. Insurance can help cover the costs of cleanup and fines.
Loss of income: Aerial applicators may experience a loss of income due to accidents, damages, or legal disputes. Insurance can help cover the costs of lost revenue.
Overall, aerial applicators insurance can help protect from financial losses and provide peace of mind while they focus on their operations and business growth.
What Type Of Insurance Do 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 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 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 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 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.
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.
What Does Aerial Applicators Insurance Cover & Pay For?
Aerial applicators, also known as crop dusters, are specialized pilots who spray crops with pesticides or fertilizers from the air. While they play an important role in agriculture, their work also carries risks that can lead to lawsuits. Here are some of the reasons aerial applicators may be sued and how insurance can help protect them:.
Crop damage: Sometimes, aerial applicators may accidentally damage crops while spraying. This could happen due to equipment failure, human error, or weather conditions. If the crop owner sues the applicator for the damage, the applicator's liability insurance can help pay for legal fees and any damages awarded..
Personal injury: Aerial applicators fly low to the ground and at high speeds, which can pose risks to people on the ground. If an applicator accidentally injures someone while spraying, they could be sued for personal injury. Liability insurance can help pay for legal fees and any damages awarded..
Environmental damage: Aerial applicators must follow strict regulations to prevent environmental damage from their spraying activities. If an applicator violates these regulations and causes environmental damage, they could face lawsuits from government agencies or private citizens. Environmental liability insurance can help pay for legal fees and any damages awarded..
Property damage: Aerial applicators may accidentally damage property such as buildings or vehicles while spraying. If the property owner sues the applicator for damages, liability insurance can help pay for legal fees and any damages awarded..
In each of these examples, insurance can help protect aerial applicators from financial losses due to lawsuits. Without insurance, an applicator could face significant legal expenses and damages that could put them out of business. Liability insurance can help applicators manage risks and protect their livelihoods.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0721 Crop Planting, Cultivating, And Protecting
- NAICS CODE: 115112 Soil Preparation, Planting, and Cultivating
- Suggested Workers Compensation Code(s): 7422 Aviation - NOC - Other Than Helicopters - Flying Crew, 7431 Aviation - Air Charter or Air Taxi - Flying Crew
Description for 0721: Crop Planting, Cultivating, And Protecting
Division A: Agriculture, Forestry, And Fishing | Major Group 07: Agricultural Services | Industry Group 072: Crop Services
0721 Crop Planting, Cultivating, And Protecting: Establishments primarily engaged in performing crop planting, cultivating, and protecting services. Establishments primarily engaged in complete maintenance of citrus groves, orchards, and vineyards are classified in Industry 0762. Establishments providing water for irrigation, or providing both water and irrigation services, are classified in Transportation and Public Utilities, Industry 4971.
- Aerial dusting and spraying
- Bracing of orchard trees and vines
- Citrus grove cultivation services
- Cultivation services, mechanical and flame
- Detasseling of corn
- Disease control for crops, with or without fertilizing
- Dusting crops, with or without fertilizing
- Entomological service, agricultural
- Insect control for crops, with or without fertilizing
- Irrigation system operation services (not providing water)
- Orchard cultivation services
- Planting crops, with or without fertilizing
- Pruning of orchard trees and vines
- Seeding crops, with or without fertilizing
- Seeding of sprouts and twigs
- Spraying crops, with or without fertilizing
- Surgery on orchard trees and vines
- Thinning of crops, mechanical and chemical
- Trees orchard: cultivation of
- Trees orchard: planting, pruning, bracing, spraying, removal, and
- Vineyard cultivation services
- Weed control, crop: after planting
Aerial Applicators Insurance - The Bottom Line
Not crop dusting insurance policies are the same. You can learn if your operation has the best fit aerial applicators insurance policies by talking to an experienced commercial insurance broker.
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
- Specialty Aircraft And Airports
The aviation industry requires insurance for a number of reasons
Firstly, it is a highly regulated industry with strict safety standards that must be met. Accidents or incidents can occur despite these measures, and insurance helps to cover any resulting damages or liability.
Secondly, the cost of repairing or replacing aircraft and associated equipment can be extremely high. Insurance helps to mitigate these costs in the event of an accident or damage.
Thirdly, the aviation industry operates on a global scale, with aircraft and personnel often crossing international borders. Insurance helps to protect against any legal issues that may arise in different countries.
Finally, the aviation industry is constantly evolving and facing new risks and challenges. Insurance helps to provide a safety net in the face of these unknown risks.
In summary, insurance is an essential component of the aviation industry as it helps to cover potential damages, liability, and new risks. It allows the industry to operate smoothly and safely, ensuring the safety and well-being of both passengers and crew.
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.