What is

Farm Liability
Insurance?

In simple terms, Farm Liability Insurance covers the following: someone sues you, alleging that your negligence has caused them property damage or bodily injury. This coverage protects against these claims and the legal expenses of settling the suit.

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Here are just a few of the items covered by loss of farm income insurance:

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Visitor Injuries

If a visitor, such as a customer at a farm stand or a guest attending a farm event, slips and falls, injuring themselves, farm liability insurance can cover their medical expenses and any legal costs if the injured party decides to sue.

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Pollution Liability

Some farm liability policies may include coverage for pollution liability, which can help cover the costs associated with accidental spills of chemicals, fuel, or other pollutants that occur during farming operations and cause environmental damage.

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Contractual Liability

Coverage for liabilities assumed under contracts, such as agreements with suppliers, vendors, or buyers.

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Livestock Incidents

Coverage for incidents involving livestock, such as a horse kicking a visitor or livestock escaping and causing damage to neighbouring property.

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Legal Defense Costs

Coverage for legal fees, court costs, and settlements or judgments resulting from covered liability claims, regardless of fault.

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Product Liability

Protection against claims related to products produced on the farm, such as fruits, vegetables, dairy products, eggs, or value-added products like jams or honey. If a consumer becomes ill or suffers harm from consuming farm products, this coverage can help cover legal expenses and damages. An additional insurance endorsement is required for this coverage.

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Farm Events and Activities

For injuries or property damage that occur during farm events or activities, such as agritourism events, pick-your-own operations, or educational tours. An additional insurance endorsement is required for this coverage.

Liability coverage is a simple concept but involves a full and frank discussion. By identifying all the activities that the farm operation participates in, we’ll better understand all your farm operation’s exposures. With that knowledge, we can work with you to protect you and your farm operation against a significant financial burden.

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How much coverage is enough? This is a question that your broker will discuss with you, but ultimately, it’s your decision. You have worked incredibly hard to build, maintain, and grow your farm operation, often over many generations. We want to ensure that the farm operation can continue, even if someone were to sue you.

Our liability policy is designed to be comprehensive, covering not just you as the farm operator, but also your spouse, your children (while living in your household), and your employees (while doing the farm business’ work). It provides coverage for your legal liability for your personal actions, issues arising from your farm premises, and issues arising from your farming operations.

While our liability policy is comprehensive, there are certain liabilities that it may not cover. This is why we need to have a detailed discussion about your farm operations. It’s important to ensure that you and your operation are fully covered with respect to liability, which may require additional policies or extensions.

There are also options available for an umbrella liability policy. This policy provides liability coverage over and above the limits on your underlying policies, such as farm liability or auto insurance liability. It gives peace of mind knowing you have adequate coverage for whatever comes your way.

Your Excalibur Insurance farm broker will work with you to explain the different coverage options and liability coverage available. The essential consideration in building the right coverage package for you will be determining the risks to the future of your farm operation and getting the farm back to where it was before the loss.

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