Specialty Farm Risks Insurance

Specialty farm risks insurance is a type of insurance that is specifically designed for farmers and their unique needs. This type of insurance covers a wide range of risks that are specific to farming operations, including crop damage, livestock loss, and equipment failure.

One of the key features of specialty farm risks insurance is that it is tailored to the specific type of farming operation. For example, a dairy farmer would have different coverage needs than a farmer who grows fruits and vegetables. This allows farmers to select coverage that is most appropriate for their operation, rather than having to purchase a one-size-fits-all policy.

Another important aspect of specialty farm risks insurance is that it covers a wide range of perils. This includes both natural disasters such as floods and storms, as well as man-made risks such as equipment failure and theft. This means that farmers can be protected against a wide range of potential losses, which can help to mitigate the financial impact of these events.

Another important feature of specialty farm risks insurance is that it can be customized to meet the specific needs of the farmer. For example, farmers may be able to choose between different levels of coverage, or add on additional coverage for specific risks. This allows farmers to create a policy that is tailored to their specific needs, which can help to ensure that they are fully protected against the risks that are most relevant to their operation.

Overall, specialty farm risks insurance is an essential tool for farmers. It provides a comprehensive level of protection that is tailored to the specific needs of the farmer, and covers a wide range of perils. This can help to mitigate the financial impact of any losses that may occur, and allow farmers to continue to operate their business with confidence.

As a farmer, it is important to take the time to understand the different coverage options available, and to work with an insurance agent to create a policy that is tailored to your specific needs. This can help to ensure that you are fully protected against the risks that are most relevant to your operation.

Agritainment and agritourism occurs when a farm opens itself to the general public for tours and events that revolve around farm activities. Common examples are hayrides, pumpkin patch mazes and corn mazes but the events can be much more elaborate and extensive. These activities were once covered as part of a farmowners policy, but as they increase in complexity, they are being excluded from the basic policy and must be separately covered.

Both the property and the liability exposures of anhydrous ammonia dealers are significant due to the potential for explosion. The primary legal use of anhydrous ammonia is to fertilize crops. Unfortunately, it also has several illegal uses, such as making explosives, methamphetamines, and freebase cocaine.

The farm-to-table interest has encouraged the raising of exotic breeds of animals or birds, such as bison, caribou, deer, llamas, and ostriches. These animals are exposed to a number of catastrophic hazards, such as floods, hurricanes, earthquakes, and drought. Coverage can be arranged for both property and liability hazards. These types of animals have much higher values than cattle, sheep, or hogs.

Animal Mortality is life insurance on domestic animals, livestock, and zoological animals. It covers death from any cause that is not excluded as well as voluntary destruction of animals for humane reasons when certified by a veterinarian. See Bloodstock Insurance for coverage on horses, Livestock Mortality Insurance for coverage on other livestock, and Birds (Exotic) Insurance for coverage on birds such as parrots and ostriches.

Aquaculture operations or marine farming is similar to other farming operations, but it has some unique and unusual exposures. Flood and windstorm coverage is available through various insurance pools, while private insurers provide other property and liability coverage. Unique exposures include disease and contamination of fish, shellfish, and shrimp crops during cultivation.

Arborists are tree specialists. They frequently consult and provide advice on the type of tree to plant and where to plant it. These decisions can have impact on power lines, sewer systems, and fire exposures. Arborists often provide tree-related services such as planting, trimming, removing, and spraying. Some arborists own nurseries.

Bloodstock insurance is animal mortality coverage for horses. It is usually written on valuable racing horses, thoroughbreds, standardbreds, quarter horses, or prized show horses such as Arabians, Palominos, and Tennessee Walkers. It is available for both stallions and brood mares. Rates vary based on factors such as the horse's age, use, value, sex, and the coverage provided. All insurers require a veterinarian's certification that the animal is healthy and free of illness or disability.

This coverage is properly classified as a specialty aviation insurance coverage. It applies to insureds that use aircraft (including drones or UAVs) to dust or spray insecticides or herbicides on crops or other vegetation. The hazards for these operations are greater than those associated with normal aircraft operations because the chemicals the aircraft applies may be dangerous to animal life or neighboring crops which requires that the aircraft operations be performed at low altitudes. The three types of liability coverage available are third-party liability coverage without chemical damage coverage, third-party liability coverage including protection for damage caused by using insecticides, and liability protection for damage from all but a few chemicals. Coverage applies to both bodily injury and property damage. Prior loss experience, the operator's financial condition, the number of pilots and their experience, the use of UAVs or drones, and the types of chemicals sprayed are key factors in underwriting this business.

Coverage is available to insureds that perform, under a written contract or agreement, farming or harvesting operations for others. Because unendorsed farmer's personal liability insurance or farmowners policies provide only incidental coverage for this exposure, additional coverage must be purchased when the insured's receipts exceed $5,000, which is the maximum, allowed under many farmowners policies.

that handle feed, fertilizer, seed and farm supplies make up a specialized class of retail or wholesale businesses that serve the agribusiness and farm market. Some dealers that sell fertilizer also contract with farmers for its application, which can significantly add to the exposure. Seed and grain silos are subject to explosions. Feed and seed mixing can present significant product liability exposures. Theft of liquid and solid fertilizer is a significant property exposure.

Farm implement dealers are similar to automobile and recreational vehicles dealers but with some important differences. The equipment they handle is often larger, more expensive, and may be deadly if not properly safeguarded. This equipment is built to last many years and is often serviced by the farmer with the dealer providing service on difficult repairs. These dealers may also sell used equipment.

These contractors recruit and employ farm workers to harvest crops for others. They are responsible for all labor-related human resource issues, including compliance with the Migrant and Seasonal Agricultural Worker Protection (MSAWP) Act. The contractors provide transportation to and from the fields and often provide housing, clothing, protective gear, food, and other services to the workers.

Farmers markets are open-air markets where farmers and others display and sell their goods. While the primary draw is the fresh produce, vendors may sell baked goods, fresh fish and meat, prepared items, and crafts. Food concessionaires may also sell various types of restaurant food and drinks. The local market committee and local regulations determine the type of vendors that are permitted.

Farms and ranches have always been considered a specialty line of insurance. Some major carriers have separate divisions to underwrite farm, ranch and/or agribusiness risks. Dwellings, farm buildings, equipment, and livestock at one location can expose significant values to a single loss. Most farm properties are unprotected and do not have readily available water or paid fire department service. Policies written on farms and agribusinesses often combine both personal and commercial property and liability exposures. Larger farms and corporate farms are usually underwritten as commercial lines while family farms are underwritten as more personal lines.

Insurance companies that specialize in writing agribusiness risks insure grain elevators, feed processing plants, flour mills, and similar or related plants and equipment. Both property and liability coverages are available. Explosion is the most significant exposure for both coverages. Large terminal elevators present values that require significant limits. Port elevator risks, while equally large, are less desirable.

This coverage indemnifies owners of growing crops or tenant farmers who have an interest in such crops for loss or damage caused by hail. It is subject to a written application and payment of premium before coverage takes effect. Coverage usually applies from late spring or early summer to when the crop is harvested or until the expiration date. Claims are paid based on the maturity of crops at the time of loss.

These coverages are for owners of stables or farms where horses are boarded for others. The horses may be available for only their owners to ride or may be rented to others to ride. Some stables provide stud and breeding services. Coverage provided for these operations includes care, custody, and control coverage on the breeder's behalf and other coverages to protect its liability with respect to the horses being bred.

Farms that specialize in raising show or race horses have significant livestock and liability exposures. In addition, horse farms that provide boarding and breeding activities or the ones that offer training and instruction have unique liability and property exposures. Property coverage applies to barns, stables, tack, other equipment, and farm machinery. Commercial general liability insurance covers various exposures connected with horses.

Insurance programs for horticultural risks target florists, garden centers, nurseries, landscapers, fruit and vegetable farms, greenhouses, farmers markets, and pick-your-own operations. In addition to property and general liability coverages, other optional coverages available include florists or horticulture errors or omissions; payment of damages for the insured's negligent acts, errors, or omissions; pollution liability for pesticides and fertilizers; and pollution cleanup. Other optional coverages include increased business personal property seasonal limits, accounts receivable, and different money limits before and after holidays. Errors and omissions coverage is usually subject to a deductible.

This is life insurance coverage on livestock that consists primarily of cattle, hogs, and goats. It indemnifies the insured for loss due to the animal's death from natural causes, fire, lightning, accident, acts of God, acts of men other than the owner or employees, and necessary destruction of animals for humane purposes. Different coverage approaches apply to horses and poultry.

This special livestock insurance coverage form insures a livestock auction market's owner for loss or damage to livestock consigned to the market. Coverage begins at the shipping point and ends when the livestock is unloaded. Some forms also cover animals to be auctioned from the time they enter the auction market's premises until they are sold. A few coverage forms go so far as to cover sold livestock until they are delivered to their purchaser's premises or final destination.

This is a named peril livestock insurance coverage form for commercial feedlots. It is usually written on a monthly reporting basis. Coverage begins when the livestock reaches the feedlot.

Multiple peril crop insurance provides "all risk" type crop insurance against unavoidable losses due to the uncertainty of nature. A division of the federal agricultural department administers the program but is available through private insurers and licensed agents and brokers. It covers specified crops such as corn, soy beans, wheat, barley, and tobacco. Coverage applies to loss to crops caused by wildlife, insect infestation, plant disease, earthquake, drought, flood, hail, wind, frost, freeze, lightning, fire, excessive rain, snow, hurricanes, tornadoes, and any other unavoidable cause of loss due to adverse weather conditions.

This coverage protects individual poultry raisers, feed mills, and financial institutions for their investment in large flocks of poultry raised as broilers, breeders, or egg layers. Coverage is usually written on an "all risks" basis using coverage forms and policies designed for the poultry industry. Coverage usually includes death caused by climatic conditions, such as temperature and humidity, on the grower's premises or in transit.

This coverage protects seed growers, seed dealers, wholesalers, seed packagers, seed brokers, and other individuals or firms that handle seeds against claims that arise from errors or omissions in germination tests, failure to germinate, mislabeling of seeds, and similar claims. Rating is based on the types of seeds handled. A distinction is made between regular garden seeds and field seeds such as corn, wheat, oats, etc. Without this important coverage, there would be gaps in the seed handlers' products liability coverage.

These operations can be very large and generic or small and customized. All are labor intensive and involve significant workers compensation exposures from cuts, carpel tunnel, and disease. The slaughterhouse may own the meat it produces or others may own the meat and the slaughterhouse only processes it. Housekeeping, sanitation, and regularly testing the meat are primary underwriting considerations.

The market for terrorism coverage changed dramatically on September 11, 2001. Coverage availability and pricing varies significantly, based on geographic location and type of industry.

Following are some examples of Farm Risks Insurance claims and the corresponding insurance coverages that can help pay for them:

1. Liability Claim: A visitor may be injured on your farm due to a hazardous condition, such as a poorly maintained barn or machinery. They could file a lawsuit seeking damages for medical expenses, lost wages, and pain and suffering. Specialty Farm Risks Insurance can help cover the cost of the lawsuit by paying for legal defense and any damages awarded by the court, up to the limit of the liability coverage.

2. Product Liability Claim: If a customer becomes ill after consuming your farm product, such as eggs, fruits, or dairy, they could sue for damages. Here, Specialty Farm Risks Insurance can provide coverage for the associated legal costs and any damages or settlements, thus safeguarding your farm from potential financial burdens.

3. Environmental Liability Claim: If your farm activities lead to environmental contamination, such as chemical spills that contaminate nearby water sources, you could face a lawsuit from affected parties. Specialty Farm Risks Insurance can help cover the cost of cleaning up the environmental damage, legal defense, and any damages or fines levied by the court.

4. Equipment Breakdown Claim: Your farm's machinery may break down due to an unexpected event, causing a disruption in farm operations and potential loss of income. In this case, if someone sues your farm because they didn't receive their product on time, Specialty Farm Risks Insurance can cover legal costs and any potential settlements, plus the cost of repairing or replacing the damaged machinery.

5. Employment Practices Liability Claim: A current or former employee might sue for wrongful termination, harassment, or discrimination. In this situation, Specialty Farm Risks Insurance can help by covering the legal defense costs, any settlements or damages awarded, and potentially some public relations expenses to help manage your farm's reputation during the lawsuit.

6. Livestock Mortality Claim: If you are a livestock farmer and your animals die due to disease or a catastrophic event, it could lead to significant financial loss. If this leads to a lawsuit from customers or suppliers due to breach of contract, Specialty Farm Risks Insurance can provide coverage for the legal costs and any resulting settlement or damages.

Please note that the specific coverage will depend on the terms and conditions of the insurance policy, so it is crucial to understand what is covered and what is not when purchasing Specialty Farm Risks Insurance.