June 2009

Consider your insurance coverage before holding events on your farm

If you’re planning or continuing special activities on your farm to which the public is invited, make sure you have the proper insurance coverage.

“Any time you invite the public on your property you should contact your insurance agent,” said Scott DeNoon, underwriting and brokerage manager for Virginia Farm Bureau Mutual Insurance Co. “Legally, customers are seen as business invitees, and you owe them the duty of keeping the premises safe and free of hazards.”

Activities for which you should contact your insurance agent include the following:
• hay rides;
• craft and other festivals;
• petting zoos;
• pony rides;
• farm and winery tours; and
• pick-your-own and cut-your-own operations.

Depending on the activity, coverage may be available by either endorsing the standard farmowner policy or purchasing a general liability policy through Farm Bureau. If the activity is one that cannot be insured under a Farm Bureau policy, your agent can still help you find coverage with the assistance of Farm Bureau’s brokerage unit.

“Our brokerage underwriters are very good at tailoring coverage to address the needs of our members” DeNoon said. “In those cases where Farm Bureau is unable to provide coverage for a certain activity, we will work hard along with our agents and brokerage partners to find the needed coverage through another market.”

If you already have an agribusiness operation in place and have added an activity, you might need special coverage. When discontinuing an activity, you also should inform your insurance agent.
“It’s a good idea to contact your agent at least once a year and give them an update on your operation to make sure you have the proper coverage,” DeNoon said.

“Contact your agent when you’re in the brainstorming stage of an event. They can help you decide what coverage is needed and address the cost of the coverage, which should be a consideration in the business plan.”

Farm Bureau Safety can conduct an on-farm safety review to ensure that your operation and activities follow proper safety procedures. Your Farm Bureau agent also can make a personal visit to discuss coverage.