Commercial General Liability
Commercial general liability policies combine liability insurance with property insurance. This might meet the needs of farms that process foods, sell flowers, non-edibles, or have the public on the farm. This policy can have an “event endorsement” that will cover any injuries or mishaps that occur when you invite the public onto your farm. activities such as on-farm stands, U-Pick crops, farm tours, or other agritourism related events should all be well defined within your coverage.
Product, Premises, and Limited Liability
Product Liability Insurance: Provides coverage against injury or illness resulting from ingesting your farm products.
Premises Liability: Cover the farm or ranch in the event of an accident or physical injury to anyone visiting.
Limited Liability: Coverage for products that your customers are ingesting. The recommended amount of coverage for property and liability is based on the farm'e net worth and five year's earnings.
Multiple Peril Crop Insurance (MPCI)
MPCI covers crop losses, including lower yields, caused by natural events, such as:
- Destructive weather (hail, frost, damaging wind).
- Disease.
- Drought.
- Fire.
- Flooding.
- Insect damage.
MPCI is federally supported and regulated, and is sold and serviced by private-sector crop insurance companies and agents.
More than 90 percent of farmers who buy crop insurance opt for MPCI. Both the cost of insurance and the amount an insurer will pay for losses are tied to the value of the specific crop. MPCI is available for more than 120 different crops, though not all crops are covered in every geographic area.
MPCI policies must be purchased each growing season by deadlines established by the federal government—and before a crop is planted. If damage occurs early enough in the growing season, the policy may include incentives to replant—or penalties for not doing do.