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

Mar 22, 2021 2 min read

Farm/Ranch liability insurance and business liability insurance are critical when you want to protect your agriculture business. Without a plan, claims can be a costly threat to your business.

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.

When you have farm/ranch liability coverage with farm employer liability or workers compensation coverage, you are prepared for any medical costs from injuries you, your employees or your guests incur while on your farm. A fall or a wayward kick from your livestock wouldn’t be unheard of, and the right coverage ensures that you’re not left with expensive medical bills.

5 Lesser-Known Reasons You Need Additional Liability Coverage

There are also a variety of additional coverages that can be tailored to your unique situation.

1. You Transport or Use Animal Waste and/or Chemicals

Farm/Ranch liability pollution coverage can protect you and your operation if something goes wrong while you are using animal waste, such as if a containment dike ruptures or if there is an issue applying the waste as fertilizer. You can also get coverage if you use chemicals, such as fertilizers or pesticides. This can help cover overspray into a neighbor’s field, for example, or accidents that may occur while using a sprayer or tractor with chemical tanks.

2. You Work Closely With Other Farmers/Ranchers

If you are frequently hired out by other farmers/ranchers in your area to provide mechanical operations on their land, you are involved in custom farming, which is 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 Agritainment Business

If you open to the public for things like hayrides, pumpkin patches, corn mazes, hunting or U-pick operations, you need additional business liability coverage that protects your operation from the myriad of unknowns that come with inviting large groups of people onto your property.

4. You Sell Prepared Food Products

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 would benefit from the additional protections of business liability coverage. For example, if there was 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.

5. You Run Additional Business From Your Property

If you have additional business ventures on your property, such as selling firewood, breeding dogs, offering horseback riding lessons or running a daycare, farm/ranch liability coverage, combined with business liability coverage, can help protect both your agricultural operation and your side business from issues that might arise.

If you want to make sure your agriculture business — and everything associated with your business — is adequately protected, talk with a Farm Bureau agent about getting the right coverage for you. We know that every ag operation is different — even from your neighbor

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.