Farm liability insurance is a critical component of protecting your farm. No matter how careful you are, accidents can and do happen.
Liability insurance can help protect your assets from lawsuits. Which can help save you from losing your business, home, property or investments.
As a farmer or rancher, you should consider the different types of liability insurance. Just keep in mind that an AgriChoice® farm policy provides general farm liability coverage for premises and operations liability.1 It also provides some limited farm product liability coverage.
You may be held responsible if someone is injured or has property damaged 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.
One area of premises liability that deserves special consideration is agritourism. Generally, activities that go along with agritourism aren’t covered by your farm or ranch policy. But we offer additional coverage 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.
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.
While your farm policy provides some product liability protection, this coverage only applies to produce that you grow on your property, then sell in an unprocessed condition. For instance, if you’re selling apples to the public that you grew in your orchard, your general farm insurance policy would provide product liability coverage if a child breaks a tooth when biting into one of your apples.
On the other hand, if you use those apples to make apple cider, apple butter or some other processed product, you’d need additional commercial liability coverage written as a complement to your farm policy.
Pollution liability insurance covers injuries 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.2
Umbrella liability insurance
An umbrella liability policy gives you additional farm 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.
An umbrella policy is particularly useful if your farm or ranch vehicles are already insured with us. That’s because umbrella liability insurance can be added to your Nationwide agribusiness liability policy as an additional layer of liability protection. It’s usually less expensive than higher-limit liability policies. Ask your farm insurance agent for a cost comparison.