The simple explanation of liability insurance is this; someone sues you alleging that your negligence has caused them property damage or bodily injury. Excalibur will work with you so that, if this lawsuit does happen, that you will be defended and covered. The harsh reality is that it is very easy for someone to sue you. It doesn’t cost them anything and even though you may not feel you have done anything to cause the issue the lawsuit can still come.
How much coverage is enough? This is a question that your broker will work through with you as it depends on a multitude of factors. You have worked extremely hard to build, maintain and grow your farm operation, sometimes through multiple generations, we want to make sure the farm operation survives should someone sue you.
As noted above liability coverage is a simple concept but in practice it involves having a full and frank discussion about all activities that the farm operation participates in then we know all the exposures that your farm operation has. When we know knows what exposures you have we can work with you to be certain that you and your farm operation are protected against the possibility of a significant financial burden.
It is common for the liability policy to cover the farm operator, spouse, their children (while living in their household) and employees (while doing the farm business’ work). Coverage is normally provided for your legal liability for your personal actions, issues arising from your farm premises and issues arising from your farming operations.
There are types of liability that are not covered by most farm liability policies. Examples of liability not covered are; recreational vehicles (owned and not owned); watercraft (owned and not owned); trailers (farm and residential); damage to a neighbours crop caused by own spray drifting off; leakage of fuel oil, pesticides, herbicides, manure onto neighbouring property; your custom farming operation; your spouse’s “non farm” business; riding lessons and trail rides; and road stands.
The examples above can all be covered properly with extensions or other types of liability policies. These issues are why we need to have a full discussion of your farm operations to make sure you and your operation are fully covered with respect to liability.
There are also options available for what is known as an umbrella liability policy. This is a policy which provides liability coverage over and above the limits on your underlying policies, such as farm liability or auto insurance liability. This coverage provides peace of mind knowing you have adequate coverage for whatever comes your way.