Farming is a rewarding but complex business, and with that complexity comes risk, but farm liability insurance can provide protection. From heavy machinery to livestock and chemicals, accidents can happen, and when they do, the financial consequences can be significant. That’s why liability insurance is a necessity for farmers.
“Farm liability insurance is crucial for farmers because it provides financial protection against claims or lawsuits that may arise from accidents, injuries or property damage related to farming operations when the farmer is found negligent,” says John Grant, commercial/ag manager at COUNTRY Financial.
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Farms are busy environments where accidents and injuries can occur. If someone is injured on your property, farm liability insurance helps protect your assets when you are found negligent, helping you avoid large out-of-pocket expenses. Farm liability coverage also provides for medical coverage and legal defense. It offers protection against property damage, such as chemical overspray or livestock escaping and damaging neighboring land.
Unfortunately, lawsuits can also result when accidents occur. Even if you’re not at fault, they can be expensive.
“Farm liability insurance typically includes coverage for legal defense, reducing financial strain,” Grant explains.
Additionally, farmers are often contractually required to carry liability insurance to engage in certain activities, such as cash renting ground or selling at farmers markets.
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Coverage Considerations
Farm liability coverage provides personal protection for your premises, farm products, structures and equipment, as well as certain nonbusiness activities. Farmers should work with a qualified insurance representative to assess their liability needs and select the appropriate amount of coverage to ensure proper protection.
However, farm liability coverage typically doesn’t extend to business activities associated with the farm operation. Business liability coverage covers premises and operations liability, products liability for processed goods and completed operations for services provided.
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Avoiding Common Gaps
Policies have limitations and exclusions, so working with a knowledgeable representative is key.
“Direct-to-consumer sales often blur the line between traditional farming and a business and may not be covered automatically,” Grant notes.
Farmers should also talk with their insurance representative about workers’ compensation requirements and exemptions.
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Expert Guidance
Farm Certified Representatives are uniquely equipped to help farmers navigate these complexities.
“They have invested their time in agriculture-specific curriculum designed to educate them on coverages and products farmers need,” Grant says.
As farming evolves, so do the risks. COUNTRY Financial continually monitors the industry and makes product updates as needed. For peace of mind and protection against the unexpected, liability insurance isn’t just an option; it’s a necessity. Visit countryfinancial.com/farm for more information and to find a COUNTRY Farm Certified Representative near you.
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Business insurance policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois. Farm policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois. COUNTRY Financial is a marketing name for COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company® and their respective subsidiaries, located in Bloomington, Illinois. COUNTRY Financial serves about 1 million households and businesses throughout the United States and offers a wide range of insurance and financial products and services.
