5 Surprising Reasons You Need Additional Liability Coverage for Your Ag Operation

Mistakes are made in every business, but when you own a farm or ranch, a mistake or an accident could be costly. Not fully latching a gate or forgetting to replace a machinery part could be all it takes for an accident that damages property — yours or someone else’s.

Your agriculture business is critical to your livelihood. Both farm and ranch liability insurance and business liability insurance are an important piece of protecting that livelihood. Without farm liability coverage, claims can pose a costly threat to your business.

The good news is that you can be prepared for any medical costs from injuries that you, your employees or your guests incur while on your farm. Carrying farm and ranch liability coverage with farm employer liability or workers’ compensation coverage keeps you protected. You know how possible it is that a fall or a wayward kick from your livestock could injure someone. The right coverage ensures that you’re not left with expensive medical bills.

Here are some reasons you might need additional liability coverage, and how you can prepare for whatever might happen.

5 Lesser-Known Reasons You Might Need Additional Liability Coverage

All ag operations are different, and special circumstances require special measures for safety. Luckily, there’s a variety of additional coverages that can be tailored to your unique situation.

1. You Transport or Use Manure and/or Chemicals

Farm and ranch pollution liability coverage can protect you and your ag operation if something goes wrong while you are using animal waste. For instance, a containment dike might rupture, or you may run into an issue applying the waste as fertilizer. This is also important coverage if you use chemicals in your operation, such as fertilizers or pesticides. Pollution liability coverage can help cover overspray into a neighbor’s field or accidents that may occur while using a sprayer or tractor with chemical tanks.

2. You Work Closely with Other Farmers or Ranchers

Working with your neighbors can be a great way to put your skills to use. If you are frequently hired out by other farmers or ranchers in your area to provide mechanical operations on their land, you are involved in custom farming. That’s considered a business. If you are paid to raise livestock on behalf of others, you are involved in custom feeding, which is also considered a business. In both of these situations, you would benefit from additional protection with business liability coverage.

3. You Have an Agritourism Business

Agritourism, sometimes known as Agritainment, is a popular way you as a farmer or rancher can expand and differentiate your operation. It can be fun and rewarding to welcome the public onto your property, letting them experience your operation first-hand or participate in some seasonal fun. But don’t forget: accidents happen, and you can’t predict when or how. If you open to the public for things like hayrides, pumpkin patches, corn mazes, hunting or U-pick operations, you may need General Liability coverage with your existing AgMax policy. It can protect your operation from the myriad of unknowns that come with inviting large groups of people onto your property.

4. You Sell Prepared Food Products

Many farmers sell delicious products to the public, straight from the farm. But if you have a roadside market, a farmer’s market stall or an online business where you sell prepared food from your farm — like jam, honey or pies — you owe it to yourself to protect your business. Business liability coverage can ensure that you’re adequately prepared if something goes wrong. For example, if there were bacteria in some berries used for a jam that makes people sick, or an ingredient in a pie causes an allergic reaction, you’d want to ensure you are protected. Business liability coverage will let you breathe easy and focus on making the best product you can.

5. You Run Additional Business From Your Property

Congratulations on being an entrepreneur! It’s wonderful to put your property to use. But remember, if you have additional business ventures on your property, such as selling firewood, breeding dogs, offering horseback riding lessons or running a daycare, then you need additional coverage to make sure your business is protected. Farm and ranch liability coverage, combined with business liability coverage, can help protect both your agricultural operation and your side business from issues that might arise.

Protection When You Need It

If you want to make sure your ag business and everything associated with your business are adequately protected, talk with a Farm Bureau agent about getting the right coverage for you.