If you are in the process of obtaining or starting an agricultural business or you are currently in operation, business agriculture insurance should be the first step in a risk management analysis and strategy. Although you can manage risks through production diversification, business structures that are tax positive, and strong, targeted marketing approach, insurance takes some of the risks that you face and places them with your insurance provider.
Exposing the Liabilities
When planning your approach to insurance, the experts at Arroyo advise on four areas that present the biggest liabilities.
- General liability. This policy would cover instances of bodily injury, personal injury, property damage, and product liability. These are paid if the situation occurs during the coverage term.
- Property Insurance. Businesses are in need of property coverage, and this policy can protect your farming operations. Some of the areas of loss include vandalism, theft, wind/hail, fire, or lightning.
- Workers Compensation. Before you hire help, check on the requirements for offering workers’ comp coverage. Most farm owner’s policies won’t cover injuries on the job without a workers’ comp endorsement.
- Vehicle Coverage. Any licensed vehicle needs insurance. You may have commercial vehicles, or you may have animals transported in a truck or trailer.
Check on the inclusions or exclusions of your policy before you assume your liabilities are covered. You may need to invest in supplemental policies to cover any gaps.