Agribusiness Umbrella Insurance
Having the excess liability protection provided by commercial umbrella insurance could help save your agribusiness from potential financial devastation in the face of a major lawsuit.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Jeff Green has held several positions at life insurance companies, Wall Street firms, and distribution organizations over his 40-year career.
When your farm is both your home and your business, you've got a lot riding on it. Having the right coverage in place is key. Sometimes, that means having extra protection from a commercial umbrella insurance policy that can extend your business liability insurance coverage limits and help keep the tractors rolling.
Luckily, a local independent insurance agent can help you find all the agribusiness umbrella insurance you need. They'll get your business equipped with just the right amount of coverage. But first, here's a closer look at commercial agribusiness umbrella insurance, what it is, and why it's necessary.
What Is Agribusiness Umbrella Insurance?
Agribusiness umbrella insurance is a type of commercial umbrella insurance specifically designed to help protect businesses in the agricultural field. Umbrella insurance extends your existing liability coverage limits, such as those provided by a commercial general liability or commercial vehicle insurance policy, to $1 million or greater. This helps prevent your business from having to pay the hefty cost of lawsuits that may otherwise exhaust your liability coverage.
What Does Agribusiness Umbrella Insurance Cover?
An agribusiness umbrella insurance policy kicks in when the liability coverage limit on one of your business's other policies gets exhausted. Specifically, this coverage can apply to any of the following incidents and expenses:
- Host liquor liability
- Pollution-related claims
- Legal defense costs
- Bodily injury to third parties caused by your business's premises, products, or completed work
- Property damage to third parties caused by your business's premises, products, or completed work
- Seedsmen's liability
- Crop application liability
There are many things your agribusiness could get sued for. Having an agribusiness umbrella policy in place can help ensure you don't have to eat the costs of larger lawsuits out-of-pocket.
What's Not Covered by Commercial Agribusiness Umbrella Insurance?
There are a few exclusions under agribusiness umbrella insurance to be aware of. Expect that your policy will likely not cover any of the following:
- Intentional or malicious acts towards third parties
- Injuries to employees caused by the job environment or work duties (which would be covered by workers' comp)
- Damage to your agribusiness's property, such as buildings or equipment (which would be covered by commercial property insurance)
Understanding your policy's coverage exclusions can help you avoid filing unnecessary claims and find additional types of coverage your agribusiness may need.
Additional Steps to Take to Minimize Your Agribusiness's Liability Risk
In order to get the best and lowest premiums, insurance companies like to see that you take farm safety seriously. They want you to be as proactive in your business at minimizing risk as possible. The more risk you avoid, the more risk they avoid, and they'll reward you by offering lower premiums.
Risk-minimizing measures to take on your farm that could help you save:
- Hold regular safety meetings to educate employees on proper farm protocols.
- Have regular training both in the forefront and ongoing for employees.
- Have a designated safety officer to make sure rules are being complied with.
- Have only qualified employees operate farm equipment and heavy machinery.
- Make sure your farm isn't open to the public without supervision.
- Keep all equipment and heavy machinery locked and disengaged.
- Have security cameras around the premises.
- Make sure livestock is secured and in designated fields and areas.
An independent insurance agent can help provide more examples of measures your agribusiness can take to help potentially reduce the cost of its commercial coverage.
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How Much Does Agribusiness Umbrella Insurance Cost?
The answer is that it depends on your agribusiness's specifics, including what risk factors your farm has and what its operations are. The amount of coverage your agribusiness needs will also impact your overall premiums. Working together with an independent insurance agent is the best way to find the most affordable coverage in your area.
The Benefits of Working with an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. As your agribusiness grows and your needs change, they'll be there to help you adjust your coverage, to make sure you're properly protected without overpaying. Your agent can also help file claims for you as necessary.
https://www.nationwide.com/business/agribusiness/commercial-insurance/coverages/umbrella-policy