Grain Elevator Insurance Policy Information
Grain Elevator Insurance. A grain elevator, as he name suggests is a structure that is designed to stockpile or store grain. The buildings house vertical storage bins that make it easy to transport the grain that is stored within it.
The purpose of a grain elevator is to protect grain, an essential agricultural crop, from becoming damaged, because if it is left in a field, the quality of the grain can become compromised by mold, insects, birds, and rodents. These structures ensure that grain is stored in the best possible environment so that it remains safe, healthy, and can continue being used.
Grain elevators are designed for the long and short-term storage of bulk grain such as corn, soybeans, or wheat. Grain is brought to the elevator by farmers, usually by truck, and is inspected and sampled prior to unloading. If accepted, it is weighed, cleaned, dried, and moved into the elevator's storage silos by conveyor belt or other material handling equipment.
Once it is purchased, it is removed from the silo, weighed and loaded onto trucks, railcars, or barges for shipment. The grain elevator may operate as an adjunct to milling or feed manufacturing plants. Some large grain elevators broker grain between farmers who produce the grain and agribusiness companies which purchase it in bulk.
As the operator of a grain elevator, it's safe to say that you offer a valuable service. Like any type of business owner, it's important that you protect your business from the risks that you are exposed to.
What's the best way to do that? By investing in the right type of grain elevator insurance coverage. Why do grain elevator owners and operators need insurance? What type of coverage should they have? In this guide, you'll find the answers to these questions and more.
Grain elevator insurance protects granaries from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked granary insurance questions:
- How Much Does Grain Elevator Insurance Cost?
- Why Do Grain Elevatorms Need Insurance?
- What Type Of Insurance Do Grain Elevators Need?
How Much Grain Elevator Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small grain elevators ranges from $67 to $89 per month based on location, size, operations, claims history and more.
Why Do Grain Elevator Need Insurance?
Just like other business owners, grain elevator owners and operators face several risks, and just like other businesses, you are responsible for those risks. In other words, if something goes wrong, you are legally liable for any of the related costs.
For example, if your grain elevator breaks down or is damaged for any reason, you will be responsible for the repairs; or, if a client sues you, citing that the grain you stored for them or that you supplied to someone else was damaged, you'll be responsible for the related costs.
As you can imagine, the costs that are associated with any mishaps or unexpected circumstances that may arise, you could be looking at serious financial losses. The costs that are associated with lawsuits and any settlements that you may be required to pay can be quite expensive.
If you have the right type of grain elevator insurance coverage in place, however, if something unexpected arises, instead of having to pay for the expenses out of your own pocket, your insurance carrier will cover them for you.
In other words, granary insurance can help to protect you from serious financial losses.
What Type Of Insurance Do Grain Elevator Need?
The specific type of grain elevator insurance coverage that grain elevator owners and operators will need depends on several factors; where your operation is located, the size of your operation, and how many people you employ, for example.
Since the insurance requirements for grain elevator owners and operators do vary, it's very important to consult with an insurance broker who specializes in commercial policies so that you can ensure you have the coverage you need.
With that said, here's a look at some of the different types of coverage that grain elevators should have:
- Commercial Property - This type of coverage is designed to protect your commercial property and the contents within it from acts of nature, theft, and vandalism that may impact your property. For example, if a fire were to break out, commercial property insurance would help to cover any repairs that may need to be made, and it would help to replace the grain that you lost.
- General Liability - You'll also need to have a commercial general liability insurance policy in place. This kind of coverage protects you from third-party property damage and personal injury liability claims. For example, if a client were to suffer an injury while making a delivery to your grain elevator and they filed a lawsuit against you, this type of coverage would help to cover your legal defense fees, as well as any settlements that you may be required to pay.
- Workers' Compensation - If you employ a staff, workers' comp insurance is a definite must. If any of your employees suffer a work-related injury, this type of coverage will help to pay for any medical care that they may require, as well as replace any wages that the employee may lose if they are unable to work while they are recovering.
These are a few examples of the type of grain elevator insurance policies you'll need to have operating a granary.
Grain Elevators' Risks & Exposures
Premises liability exposure is moderate. Customers, dealers, and inspectors regularly visit the premises. Visitors must be provided with appropriate safety equipment and be accompanied at all times by an employee. Grain can be slippery. Careful attention to housekeeping is required to prevent injury from slips, trips, and falls. Floor openings should be covered or protected with railings.
Good controls of the grain loading and unloading operations are necessary to prevent injury to visitors. There should be a disaster plan in place for unexpected emergencies.
The elevator may have a railroad sidetrack or dock. An employee should verify that no one is in the path of an incoming or outgoing train. Railroad tracks, piles of grain, and conveyors can be attractive nuisances for trespassers. The premises should be enclosed by fencing with "No Trespassing" signs posted. Dust explosions and fires could damage adjacent properties.
Products liability exposure can be high due to the potential for contamination of grain. Grain must be properly dried to prevent molds and fungus from growing. Fumigation processes must be carefully monitored. Chemicals used to control vermin must be FDA approved and carefully administered to avoid affecting the grain.
If the grain elevator contracts for the delivery of grain to customers, a written guarantee should be obtained from carriers that the trucks have not been previously used to transport chemicals or other contaminants.
Environmental impairment exposure may be high due to fumigants used to control mold and fungus, pesticides used to control pests and vermin, and lubricants and solvents used for maintaining and fueling machinery. Control of contaminants should be carefully monitored, and records should be kept. Waste disposal must meet all state and federal regulations.
Workers compensation exposure is severe due to numerous life-threatening hazards including suffocation from entrapment in grain bins, falls from heights, crushing injuries or amputations from grain handling equipment, and fires and explosions from accumulations of grain dust.
Any worker entering a grain storage area or performing equipment maintenance at heights should be provided with a body harness and maintain contact at all times with an attendant. Workers should not enter grain storage areas when the grain is being moved into or emptied from the facility.
Man lifts and conveyors should be regularly inspected and equipped with emergency shutdown switches. Man lifts should not be used for moving grain, and employees should not be permitted to ride on conveyors. All electrical equipment should be explosion-proof, have static eliminators, and be grounded.
Slips and falls are common as grain can be slippery. Floor openings should be covered or protected with railings. Careful attention to housekeeping is required. Much of the work can be manual and can result in lifting or back injuries such as hernias, sprains, and strains.
Ongoing exposure to mold and fungus spores, fumigation chemicals and pesticides can cause a variety of respiratory illnesses. Continued exposure to high noise levels can cause hearing problems. Appropriate safety equipment is required.
Many workers are seasonal and may not have the benefit of proper training and experience. If the elevator has a dock for loading onto barges, the elevator may need U.S. Longshore and Harbor Workers coverage in addition to workers compensation.
Property exposure is severe due to the combustibility of grain dust and multiple sources of ignition. Accumulations of grain dust provide the major source of fuel for an explosion. Gases can build up in wet grain, resulting in spontaneous combustion and a fire that is accelerated by the grain dust. Ventilation, dust control and removal systems, use of moisture probes, and proper attention to housekeeping to reduce dust accumulations on exposed surfaces such as floors can reduce the exposure.
Ignition sources include extensive electrical wiring for grain processing equipment, such as conveyor belts and grain dryers. Electrical wiring, motors, belts, and other equipment must be grounded to prevent static buildup and discharge, and be inspected and maintained on a regular basis. All electrical wiring and fixtures should be conduit and be explosion-proof. Smoking should be prohibited throughout the facility.
Grain elevators may be targeted by vandals. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Business income exposure is very high due to the seasonality of operations and the unavailability of temporary replacement facilities.
Inland marine exposure comes from accounts receivable if the grain elevator bills customers, bailees, computers for tracking inventory, contractors' equipment, and valuable papers and records for customers' and suppliers' information. Duplicates must be kept of all data to permit easy replication in the event of a loss.
If the elevator holds grain for others, there will be a high bailees exposure. The equipment used to process the grain may require contractors' equipment coverage. Goods in transit coverage may be needed depending on when the title of purchased grain passes to the buyer as the elevator may be responsible for the goods until delivered to the purchaser.
Crime exposure is from employee dishonesty. Pre-employment background checks, including criminal history, should be performed on all employees handling money. Grain elevator operations involve a number of transactions and accounts that can be manipulated.
Loading docks should be supervised to minimize employee theft of goods. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements.
Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Receipts must be provided for all payments and compared to money received.
Business auto exposure is limited because most grain is delivered by the farmers, and pickup is by the buyers or by rail. If the elevator contracts delivery with outside providers, a certificate of insurance should be kept on file verifying liability coverage. If vehicles are owned, all drivers must have a valid driver's license with acceptable MVR. Vehicles must be well maintained with records kept at a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4221 Farm Product Warehousing And Storage
- NAICS CODE: 493130 Farm Product Warehousing and Storage
- Suggested ISO General Liability Code(s): 95455 Grain Elevator Operations
- Suggested Workers Compensation Code(s): 8304 Grain Elevator Operation & Local Managers, Drivers
Description for 4221: Farm Product Warehousing And Storage
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 422: Public Warehousing And Storage
4221 Farm Product Warehousing And Storage: Establishments primarily engaged in the warehousing and storage of farm products. Establishments primarily engaged in refrigerated warehousing are classified in Industry 4222.
- Bean elevators, except sales
- Cotton compresses and warehouses
- Farm product warehousing and storage, other than cold storage
- Grain elevators, storage only
- Potato cellars
- Tobacco warehousing and storage
- Wool and mohair warehousing
Grain Elevator Insurance - The Bottom Line
To find out what kind of grain elevator insurance coverage you'll need to fully protect your granary, speak with a skilled commercial broker who specializes in business insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Warehouse And Storage Insurance
Learn about small business warehouse and storage insurance - which protects storage and warehouse facilities and protects their inventory from property damage from fire and weather, vandalism and theft and liability coverage as well.
The purpose of your operation is to store & secure and other businesses' property, your also have to protect your own. Warehouse and storage commercial property insurance, you can protect your buildings, their contents and other people belongings, and other structures from damage due to fire, weather, smoke, theft, and other causes of loss.
Warehouse business property insurance protects your assets, including office equipment, computers, furniture, tools, and equipment.
And Like other warehouses, you may also need warehousemen legal liability insurance. Warehouse legal liability insurance, which should be carried by every 3rd party warehousing company, says that the facility or plant is responsible for the safe storage of your goods and products - and they must provide "reasonable care" to your goods while under their care.
Warehouse legal liability coverage is special because it protects the physical products and goods that belong to someone else, under the storage facility's care, custody and control.
Warehouses should also have a commercial general liability insurance policy. CGL protects against third-party bodily injury & property damage and the legal costs associated with defending against lawsuits.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Contractors' Equipment, Valuable Papers and Records, Warehouse Operators' Legal Liability, General Liability, Employee Benefits, Umbrella, Hired and Non-Owned Auto and Workers Compensation
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Goods in Transit, Cyberliability, Employment-related Practices, Environmental Impairment, Business Automobile Liability and Physical Damage, Stop Gap Liability and U.S. Longshore and Harbor Workers Coverage