Each workday brings new surprises and challenges for farm owners and workers. Whether a farm is sized for commercial use or is on the smaller side, unexpected accidents and lawsuits remain a persistent threat. Luckily, proper farm and ranch insurance can help.
At a basic level, liability insurance protects against legal and financial implications resulting from damage, theft, or injury on farm property. This type of protection focuses on third-party visitors, customers, delivery drivers, and more. Liability insurance can cover the costs if a third party becomes injured or their property becomes damaged.
Here’s a guide for ranchers who want to protect their livestock and land with liability insurance and other coverages for the best protection.
Assessing for Risk Livestock And Land Liability Insurance Coverage
Because farms deal with varying risk factors, various coverage options are available for liability insurance. Farmers can begin with a risk assessment to determine which coverage plans best suit their needs.
Production risk is perhaps the most important aspect of risk to consider. Production risk refers to the possibility that weather, insects, and disease will negatively impact products that are sold from the farm.
Products that have been affected have the potential to harm consumers, necessitating liability insurance coverage to shield the ranch from possible legal fees and settlement costs. Product liability insurance is essential for farms that sell crops or other consumable products.
A local ranch will only need to look at events such as the mass recall of the Peanut Corporation of America’s products, which killed nine people and sickened hundreds more, to understand why liability insurance in this area is non-negotiable; the PCoA went bankrupt in the aftermath of recalling its salmonella-tainted items.
Specialized Livestock And Land Insurance Coverage Options
Along with the possibility of damaged products, several other risks can be covered under liability insurance. One aspect of liability protection that some farms and ranches may benefit from is agritainment and agritourism insurance.
This coverage addition is helpful for farms that offer activities such as hayrides, hunting, petting zoos, and more. Similarly, an equine operation is an available addendum to liability insurance that protects third-party participants who interact with horses on the farm.
Both are types of liability insurance that can assist with lawsuits or medical expenses that may result from bodily injury or other incidents. Another important aspect of liability coverage is pollution liability. Contamination is a possibility whenever farms deal with crops and livestock.
Pollution liability insurance can protect farmers if a lawsuit arises from claims of contamination or pollution of products. This contamination can come from the improper handling, storage, or disposal of animal waste, machine oil spills, and more.
Protection For Livestock And Land Employers And Employees
Although liability insurance typically applies only to third parties, some coverage options can protect those working on the farm. Injuries may occur because employees are often faced with potential hazards such as unpredictable animals, equipment, and harsh weather.
Employer liability insurance can financially protect farm owners in cases where an employee files a claim due to bodily injury. This applies to claims made by full-time, part-time, temporary, or seasonal workers who experience injuries on farm property.
Workers’ compensation may also apply if an employee files a claim against a farm for bodily injury. Employers’ compensation will lessen their financial responsibility by contributing to the injured person’s medical costs.
Injured employees can also have more peace of mind knowing they are not entirely responsible for medical expenses. Workers’ compensation can also ensure that employees continue to earn a wage while recovering from an injury.
Typical Exclusions Found In Livestock And Land Liability Insurance
Even though liability insurance covers many aspects of farm life, policies may not cover all the risks that a specific farm faces. Since different insurers offer different coverages and exclusions, farmers should check the specifics of their plan to ensure that they are fully informed about what is included and excluded.
Exclusions from liability plans are usually related to non-farm activities. This could include landscaping, snow removal, or custom farm work such as remodeling. Since liability insurance covers injury to another person, separate plans should be purchased to insure other assets. Farm vehicle, crop, and livestock insurance are important facets of complete coverage.
Protect The Legacy Of Your Farm And Ranch With Livestock And Land Insurance From Burton & Company
Proper protection is essential in the unpredictable world of farming. Liability insurance provides a shield against unforeseen events, financial protection, and peace of mind to farmers and farm visitors alike. The importance of liability insurance cannot be overstated.
From mitigating accidents involving visitors to safeguarding against legal claims arising from product issues, the experts at Burton & Company can help you explore liability insurance and other necessary additions. Contact Burton & Company to schedule an appointment.
