The agriculture industry is a key pillar of the United States' economy and an indispensable part of our food supply system. Unfortunately, the possibility of extreme weather impacts and loss potential associated with the insureds products means that feed manufacturing operations, grain warehousers, growers, packers, shippers, and other commercial agribusinesses have a number of potential exposures to prepare for and mitigate. The New Food Economy estimates that in 2017, natural disasters cost American agriculture over $5 billion.

When disasters like these occur, commercial agribusiness insurance solutions can help these businesses guard against business impacts and liability from:

• Loss of buildings, stored commodities or livestock
• Fire, smoke, and explosions
• Damage to equipment and agricultural infrastructure
• Business Interruption
• And more

Why Do Agribusinesses Need Customized Coverage?

In response to changes in the global food supply system, congress has enacted the Food Safety Modernization Act. This puts into place a number of best practices, hazard analyses, and risk prevention measures that commercial operators must follow. These regulations are intended to make our food system safer, and ensure that agricultural operations remain healthy and sustainable.

However, even when feed manufacturers, grain operators, and other commercial agribusinesses are compliant with regulations and best practices are followed, any season can bring its own set of challenges and setbacks. Some exposure scenarios agribusinesses may face include:

• Claims against over-the-road-vehicles
  Whether they manufacture feed, store grain, or deliver nursery products, agribusinesses need to transport their products to or from their property. These typically large and expensive vehicles can cause serious financial damage and bodily harm if there is an accident. Without the proper insurance coverage, such a mishap could have an adverse business impact.
  
  
• Wind, Hail, and Tornado Damages
  Natural forces such as strong winds, hail, and tornadoes are some of the most common causes of damage to buildings, vehicles, and machinery. These storms can destroy your buildings, displace equipment, or render machinery inoperable, all resulting in financial loss. With the proper agribusiness coverage, you can avoid long-term repercussions of these otherwise destructive natural phenomena.
  
  Note: Tornadoes and strong winds can also result in water damage to property. To make sure your clients are protected, consider PHLY Flood Coverage.

What to Look for in Commercial Agribusiness Insurance

Each operation has its own unique set of liability exposures and business owners should get an insurance policy tailored to those needs. However, there are some pillars of agribusiness liability coverage to look out for. PennState Extension recommends including some form of the following coverage areas in your policy:

General Liability

General liability insurance covers a wide range of claims that can be brought against commercial agribusiness operators. Common liability coverage includes personal injury claims brought forth from third parties, damage to property, and damage to products for an array of reasons including but not limited to fire or lightning, wind, hail, or flooding.

Business Auto Liability

Any vehicle licensed by the state should be insured. In addition to civilian vehicles used for business purposes, agribusinesses will most likely need auto insurance for commercial vehicles. Cargo coverage may also be needed to protect commodities being transported.

Property Coverage

Property coverage for commercial agribusinesses protects your commercial structures, business personal property, machinery, and more. With a broad definition of property, policies can cover sewers, building foundations, underground pipes, flues, and drains. Seek an insurance provider that has additional endorsements available to protect the assets that are unique to your business.

Theft and Crime

Although theft and crime exposure is modest, it is still recommended to have this written into agribusiness insurance policies. For most operations, the largest crime risk is employee theft. This can include theft of equipment as well as credit card and identity theft. Theft and crime coverage should include protection from breaking and entering and vandalism.

Commercial Agribusiness Insurance with PHLY

Agents and their clients must understand whether or not their insurance program covers situations unique to their business. For example, will the policy cover equipment breakdown? Will it cover pre-owned and rented vehicles?

As Philadelphia Insurance Companies expands its more than 60 years of insurance underwriting experience into the commercial agribusiness space, we bring the opportunity for our agency partners to grow their business with a trusted insurance provider. Our flexible policies can be further customized with a wide range of enhancements to suit the needs of each operation.

Beyond providing robust coverage, we also offer a wealth of risk management resources to help agribusiness operators avoid situations of liability exposure.

Learn more about coverage options for commercial agribusinesses and farm operations by visiting our product page.