Liability I nsurance for Sm all Farm s Pat Sering, AINS, AIS Farm - PowerPoint PPT Presentation

Liability I nsurance for Sm all Farm s Pat Sering, AINS, AIS Farm / Crop Specialist

A bit about me… A bit about m e…and m y fam ily

Discussion Topics “Make sure your assets are protected”  Discuss types of activities and injury incidents  Discuss safety and health issues for farm operations and potential hazards  Discuss strategies to manage your risks  Discuss your legal responsibility and your liability insurance needs  Discuss Liability Waivers  Discuss Employee concerns

Farm Activities  Farmers Markets  Corn Mazes  Pumpkin Patches  Hayrides  Pick your own (U-pick)  Petting Zoo  Christmas Tree Sales  Equine Activities  Fishing/ Hunting  Wineries  Bed & Breakfast  Etc.

Headline New s…  Toddler Dies from Playground Incident  12 Hurt in Miniature Train Incident  Pumpkin Patch Petting Zoo Infects 3 Kids  Student Falls in Bonfire at Barn Dance  9-year-old Boy Injured at Pumpkin Patch  Swimming Hole is Deadly Trap  Visitor Injured in Zip Line Incident at Farm

Just I m agine… If one of these incidents happened at your farm… What would be the consequences?  Bad Publicity  Reduced Attendance  Increased Insurance Premiums  Lawsuits  Operation Closes  Bankruptcy?

W hy is safety im portant?  Unfortunately, these examples provided are not rare events…  Approximately, 14,000 children are injured each year on farms/ ranches  40% of injured children are visiting  It is the responsibility of the owners/ operators to ensure the safety & health of all guests

Your potential guest…  Unfamiliar with agriculture  Parents looking for a free babysitter  Easily distracted (cell phones)  Rules “don’t apply to me”  Common sense doesn’t exist

Americans are litigation happy !  Liability = Legal Responsibility ◦ The person or entity who owns or leases property is legally responsible for the well-being of visitors  There are inherent hazards in agriculture, but risk can be managed  You can take every precaution and still get sued

“Make sure your assets are protected!”

How can insurance can help manage your Agriculture Risk?

RI SK Avoid Reduce Accept Transfer (Insurance)

 Most farm/ ranch insurance policies are written to cover what an insurance carrier considers a “traditional” farm or ranch.  The insurance carrier may consider your agritourism activities as “business” – not farming and your policy may have exclusions or limitations.

 Do not assume information you received from one company is applicable to all companies (Almost every insurance company has different policy language.)  Some companies used standardized forms and some do not. And companies with standardized forms may deviate from them for unique risks like agritourism.

 Your insurance company may require a commercial insurance policy, rather than a traditional farm or ranch policy.  Every insurance company has a different “risk tolerance”. One company may express more concern over an activity than another company. For example, one company may be comfortable insuring a pumpkin launcher, while another may not.

I ssue Liability W aivers  A liability waiver asserts that your guests assume responsibility for certain risks  Does not absolve you of your responsibility for your guests’ health and safety  Is a legal document, valid in court, and highlights risk for your visitors  Check with your lawyer or insurance agent

Have the Appropriate Legal Structure Your choice will influence many components of your enterprise including management, taxation, and succession planning  Sole proprietorship  Limited proprietorship  General partnership  Limited partnership  Limited liability partnership  Corporation

 Meet with your insurance agent regularly to discuss: ◦ The activities you are providing. ◦ The property you are using for agritourism activities. ◦ The amount and type of coverage you need. ◦ Don’t be afraid to ask questions!  Be com pletely open and honest to avoid any surprises at claim tim e!

Em ployee considerations  Background checks on any potential employees who would come into contact with children  Follow good hiring practices  Orient and train your employees  Encourage, empower, reward  Documentation is very important  Provide safe and health conditions

“Make sure your assets are protected!”

Other Concerns…  Alcoholic beverages  Products Liability  Vicarious liability  Off farm liability  Medical Payments vs. Liability  Employers Liability vs. Workman’s Comp.  Business property coverage  Individuals requiring special needs

Americans with Disabilities Act (ADA) mandates any business serving the public meet specified accessibility standards including access to: ◦ Parking ◦ Restrooms ◦ Eating facilities ◦ Transportation ◦ Lodging

Think Ahead…  Information that needs to be communicated with Guests  Provide emergency manuals and checklists for employees  Role-play situations  Conduct Walkthroughs (using checklists)

There are many safety and health concerns for all agritourism operations; making sure proper risk management has been addressed and being prepared for the unexpected is key!  Additional Resources and materials are available: www.marshfieldclinic.org/ nccrahs www.safeagritourism.com/ Resources

Checklists

National Children's Center for Rural Agricultural Health Safety Checklists  Corn maze checklist  Farm Market checklist  Barriers and Fencing checklist  Food Safety checklist  Communicating with Guests checklist  Machine Safety checklist  Hayride Safety checklist  Large Animal Safety checklist  Play Area checklist  Petting Zoo checklist  Traffic and Parking checklist  Walkways and Structures checklist  Water and Attractive Nuisances Checklist

I n Conclusion… Agriculture is risky business Bringing members of the public onto the property increases the risk Farms and agribusinesses best protect themselves from liability by engaging in a proactive safety program To be successful, safety must form an important part of the day-to-day business!

 Indiana Farm Bureau is the Number 1 farm insurer in the state!  Farm Crop/ Specialist throughout the state  Over 400 agents with at least 1 office in each of the 92 counties.  Superior claims service with a claims representative in every county.  Innovation; the first insurer in Indiana to provide coverage for drones.

 Questions?  Comments? Discussion

Pat.sering@infarmbureau.com (765) 362-3624 ext. 2498 I t’s up to you... “Make sure your assets are protected!” Thank You!