Here in Massachusetts a lot of attention is focusing on renewable energy firms and the 37,000+ jobs the energy sector has created. But we’ve been creating sustainable products and services for 300+ years here in the Commonwealth and throughout New England. We are a farming community!
The contemporary agriculture community of New England has several characteristics that have influenced family farming and garden centers throughout the US. Let’s take a look at some of these unique characteristics from a business risk perspective.
Greenhouses It is important to understand replacement value vs. actual cash value, how coinsurance works and how your business personal property coverage, including that set on crops is applied. With that said, many owners with greenhouses on premises are surprised at exclusions in their policies such as for wind and hail. Know explicitly what limitations your current carrier are applying to your situation and never take for granted this year will be like last year. There are carriers who focus in agriculture and agribusiness and who will deliver the comprehensive coverage required. Working with the right broker will ensure you are properly covered.
Agritourism Activities such as corn mazes, hay rides, petting zoos, etc. are not typically covered by many farm policies, as these activities may be excluded by the “Business Pursuits” exclusion. Discuss this with your broker. These activities are common here in New England. Your broker can help you package a commercial liability policy together with your farm policy to provide liability coverage.
Pick Your Own Farm policies can be endorsed to provide coverage for liability from “Pick Your Own” operations, farmers markets, and farm stands. Farm policies typically extend liability coverage only for produce grown on the farm and sold in an unprocessed condition. Once processed, you may need a separate commercial policy to provide protection. Discuss the scope of your activities with your broker. A commercial liability package policy, in conjunction with your farm policy, may provide adequate liability coverage. Never stop asking questions, ensure you are covered.
Bigger is not Better If you own a small rural farm or acreage, you won’t need the same kinds or levels of coverage a traditional or larger farm requires. But you will have your own unique coverage needs. There are some carriers who provide coverage for small farms that doesn’t compromise on coverage whether selling you short or requiring coverages that may be superfluous. This is where collaborating with the right broker will ensure you receive the right service.
Remember to empower yourself to understand how to mitigate your risks without compromising your business operations and customer experience, then purchase coverage to protect your farm and family. Thanks for sustaining us for 300+ years and counting!
Scott Graves is passionate about helping business owners. Tune in to his show ‘The No Boundaries Radio Hour’ with co-Host Dennis Mannone on the No Boundaries Radio Network. Meet him at the crossroads between strategy and innovation at scott@smgravesassociates.com or twitter @smgcreative.