Mushroom Farm Insurance Policy Information
Mushroom Farm Insurance. The popularity of mushroom farms over the years has given rise to many people growing them at both the 'home-based scale and those who are doing it at an industrial scale. However, regardless of how many mushrooms are farmed, they still need to be insured.
In the past, insurance carriers were not familiar with the crop or the industry, for that matter. Once the industry took hold, insurers had to take a closer look at the business and recognized that mushroom cultivation isn't any more or less risky than growing fruit or vegetables. The result was that many insurance companies now offer farmers' liability insurance to those growing mushrooms both at home and on a conventional farm.
Today, a growing number of carriers offer mushroom farm insurance. It is a testimony to all the hard work done by growers, their representatives, and lobbyists in various parts of the industry.
If you are a mushroom farmer, not having insurance means that you are operating on thin ice. An insurance policy offers adequate protection especially if you are growing mushrooms commercially. The policies are designed to protect you, i.e., the business owner and your assets, i.e., the mushrooms and your business investment from natural disasters to lawsuits.
Mushroom farm insurance protects mushroom growers and farmers from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked mushroom farming insurance questions:
- How Much Does Mushroom Farm Insurance Cost?
- Why Do Mushroom Farms Need Insurance?
- What Type Of Insurance Do Mushroom Farmers Need?
- What Are The Most Popular Commercially Cultivated Edible Mushroom Species?
How Much Does Mushroom Farm Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small mushroom farms ranges from $47 to $69 per month based on location, operation size, claims history and more.
Why Do Mushroom Farms Need Insurance?
Indoor mushroom growing facilities are expensive to build and operate. Operating and maintaining environmental controls require specific technical expertise.
To make sure the harvested mushrooms are free from toxic contaminants, keeping things clean is is essential.
Pest control is also a consideration because some pests, like fungus gnats, can multiply in the environment that is good for growing mushrooms. Mushroom flies larvae eat mushroom mycelium after the flies lay their eggs.
There are several diseases of button-brown-portabella (agaricus) and other mushrooms. They include La France, verticillium, mildew, trichoderma, bacterial blotch, mummy, nematodes, and viruses.
If you grow mushrooms outdoors, you must always take weather into consideration. Mushrooms are greatly affected by light, temperature and humidity levels. A heat wave, cold snap or drought can reduce or destroy crops or created conditions for weed molds to grow. Bacteria can attack and destroy crops.
A large risk for mushroom farmers is being sued by a consumer who gets sick and accuses you of selling contaminated mushrooms. Agricultural waste products used for substrates can contain pesticides and other harmful chemicals that can be accumulate during recycling.
Substrates can also can contain toxic microorganisms like aflatoxin. Some fungi can produce deadly toxins.
While mushroom farms, like most other farms, aren't legally mandated to get mushroom farm insurance, not having it can be risky.
For instance, if your farm is sued, you could end up needing to pay for fees and compensation worth thousands of dollars at least. That's why having sufficient enough liability insurance is so important.
What Type Of Insurance Do Mushroom Farmers Need?
Insurers recognize that all businesses, regardless of their industry, are faced with risks that need to be covered with the right insurance policy. The most common of these policies is a general liability insurance policy.
Mushroom farmers who have a general liability insurance policy are usually going to be covered for:
- Damage to the property
- Bodily injury
- Legal judgment and defense expenses
- Medical expenses
- Personal injury
Even though general liability is the most essential type of coverage and also the most common, there are many other types of mushroom farm insurance policies you need to be aware of. Below is a brief list of the various types of insurance a mushroom farm owner will want to invest in:
Commercial Property Insurance
Most mushroom farms will usually need commercial property insurance for the buildings and their equipment. When you have property insurance, it also covers product inventory and supplies.
Mushroom farm owners should make sure that their policy covers the farm's buildings and their growing equipment. A well-designed policy will be able to cover grown mushrooms, too, since they become part of the inventory. However, make sure that it is stated in the mushroom farm insurance policy before you buy it.
Product Liability Insurance
As a mushroom farm owner, you stand the risk of being held financially responsible for any injuries that your product causes. When you have product liability insurance, it helps protect businesses from various product-related lawsuits if the mushroom harms someone.
Make sure that you have product liability insurance just because you can never be sure who has a bad reaction to them. Even something as minor as choking on the mushroom or getting indigestion can lead to a significant financial fallout.
Workers' Compensation Insurance
Mushroom growing is labor intensive. If you have employees, then the business will most certainly require workers' compensation insurance. It will cover various job-related injuries and illnesses. Also, depending on what your state's laws are, you most likely be mandated to have it.
Commercial Auto Insurance
Vehicles used by your mushroom farm will need to be insured. You need to be covered if there is a truck or multiple delivery vans operating by making deliveries to clients. Keep in mind that having a personal auto insurance policy will not cover driving a vehicle related to your business.
What Are The Most Popular Commercially Cultivated Edible Mushroom Species?
Button, oyster, and shiitake mushrooms make up around 70 percent of the world's production. Following is a list of some of the highest demand mushrooms that are commercially cultivated (courtesy of https://en.wikipedia.org/wiki/Edible_mushroom):
- Agaricus bisporus: dominates the edible mushroom market in North America and Europe, in several forms. It is an edible basidiomycete mushroom native to grasslands in Europe and North America. As it ages, this mushroom turns from small, white and smooth to large and light brown. In its youngest form, it is known as the 'common mushroom', 'button mushroom', 'cultivated mushroom', and 'champignon mushroom'. Its fully mature form is known as 'portobello'. Its semi-mature form is known variously as 'cremini', 'baby-bella', 'Swiss brown' mushroom, 'Roman brown' mushroom, 'Italian brown' mushroom, or 'chestnut' mushroom.
- Pleurotus: species are commonly grown at industrial scale.
- Lentinula edodes: the Shiitake mushroom.
- Auricularia auricula-judae: the Jew's ear, wood ear or jelly ear mushroom.
- Volvariella volvacea: the paddy straw mushroom or straw mushroom.
- Flammulina velutipes: the enoki mushroom, golden needle mushroom, seafood mushroom, lily mushroom, winter mushroom, velvet foot, velvet shank or velvet stem../li>
- Tremella fuciformis: the snow fungus, snow ear, silver ear fungus and white jelly mushroom.
- Hypsizygus tessellatus: aka Hypsizygus marmoreus, the beech mushroom, also known in its white and brown varieties as Bunapi-shimeji and Buna-shimeji, respectively.
- Stropharia rugosoannulata: the wine cap mushroom, burgundy mushroom, garden giant mushroom or king stropharia.
- Cyclocybe aegerita: the pioppino, velvet pioppini, poplar or black poplar mushroom.
- Hericium erinaceus: the lion's mane, monkey head, bearded tooth, satyr's beard, bearded hedgehog, or pom pom mushroom.
- Phallus indusiatus: the bamboo mushrooms, bamboo pith, long net stinkhorn, crinoline stinkhorn or veiled lady mushroom.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0182 Food Crops Grown Under Cover
- NAICS CODE: 111411 - Mushroom Production
- Suggested ISO General Liability Code(s):
- Suggested Workers Compensation Code(s): 0035 Farm - Florist & Drivers
Description for 0182: Food Crops Grown Under Cover
Division A: Agriculture, Forestry, And Fishing | Major Group 01: Agricultural Production Crops | Industry Group 018: Horticultural Specialties
0182 Food Crops Grown Under Cover: Establishments primarily engaged in the production of mushrooms or of fruits and vegetables grown under cover.
- Bean sprouts grown under cover
- Fruits grown under cover
- Greenhouses for food crops
- Hydroponic crops, grown under cover
- Mushroom spawn, production of
- Mushrooms, growing of
- Rhubarb grown under cover
- Seaweed grown under cover
- Tomatoes grown under cover
- Truffles grown under cover
- Vegetables grown under cover
Mushroom Farm Insurance - The Bottom Line
As a mushroom farm owner, it pays to be covered with multiple insurance policies. You also should make sure that there aren't any gaps in the policies; if there are, they should be patched up.
To find out more about the mushroom farm insurance coverages you'll need as a mushroom farmer, speak with an reputable and experienced insurance agent who specializes in commercial farming 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 Agribusiness Insurance
Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.
- Insurance Farming Terms Glossary
- Aquaculture Fish Farm
- Commercial Fishermen
- Dairy Farm
- Equine & Horse Farm
- Farm And Ranch
- Farm Equipment Dealers
- Farm Labor Contractors
- Livestock & Cattle
- Mushroom Farms
- Nursery And Greenhouse
- Nut Farm
- Orchards & Groves
- Poultry Farm
- Sheep & Goat Farm
- Swine, Hog & Pig Farm
- Tobacco Farm
- What Are Farm And Ranch Insurance Endorsements?
Farming is, and has always been a tough business. There are many uncontrollable factors for farmers to deal with - like the weather, vermin, or other natural catastrophes. Any of these can destroy cash crops, such as corn, cotton, soybeans, and wheat, and put the farmer in a very bad financial situation.
Insurance for agribusiness falls into three general categories:
The first is property insurance on the buildings and the usually substantial amount of business personal property made up of machinery, livestock, equipment and other stock.
The second is liability for both premises and products.
The last is protection for worker injuries. Commercial auto insurance should be written if the operation owns vehicles and especially if it transports its own products.
There are a wide variety of agribusiness insurance options that are available to farmers. These policies allow them to to receive compensation in the event of a poor growing season, dropping prices, cattle disease or catastrophic natural event.
Loss of crops or livestock can financially ruin an agribusiness operation. The crop insurance agrees to indemnify the farmer, rancher or grower against losses which occur during the crop year. Losses have to be caused by things which are unavoidable or beyond the farmer's control - like a drought, freeze and/or disease.
Some policies offer coverage due to adverse weather events such as the inability to plant due to excess moisture or losses due to the quality of the crop.
Minimum recommended small business insurance coverage: Buildings, Business Personal Property, Crop Insurance, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Mobile Equipment, Valuable Papers and Records, General Liability, Environmental Impairment, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Business Income and Extra Expense, Earthquake, Equipment Breakdown, Farm Owners, Flood, Computer Fraud, Employee Dishonesty, Forgery, Money and Securities, Cyber Liability, Employee Benefits, Employment-related Practices Liability, Product Recall, Underground Storage Tank, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).