As a farmer or rancher, you should consider four primary areas of liability:
You may be held responsible if someone is injured or sustains property damage as a result of the physical condition of your farm or ranch. A common example is a visitor who slips and falls on your property.
You may also be held responsible for injury or property damage caused by some aspect of your farm or ranch operations. A prime example is an incident caused by farm machinery on a roadway.
This is liability for injury or property damage that results from the escape of pollutants directly from your farm or while in transit. Government regulations also consider you responsible for pollution cleanup.
Insurance coverage options vary by state and jurisdiction. In most states, optional coverage is available to provide protection for some of your pollution exposures.
Product liability applies when injury or property damage occur as a result of the use of one of your products. One example would be bodily injury caused by the consumption of an edible product.
AgriChoice® provides general liability protection (subject to exclusions and policy conditions) for premises and operations liability. It also provides some limited coverage for product liability.
Umbrella insurance provides broad coverage above your standard farm and ranch insurance. An umbrella policy gives you additional liability coverage and higher coverage limits for all policies that fall underneath it. It can be a cost-effective way to provide you with additional protection against the liability risks you may face.
Make sure your agritourism business is protected
One area of premises liability that deserves special consideration is agritourism. Generally, activities that go along with agritourism are not covered by your farm or ranch policy. Nationwide offers coverage supplemental to your farm or ranch policy that can provide protection for most types of agritourism.
Talk to your agent about all of the activities that take place on your farm or ranch to make sure your operation is properly covered.