What Does a Standard Farm Liability Policy Usually Cover?
Standard farm liability policies usually cover anything define as farming that you generate revenue from while excluding things that would be considered a business pursuit in your insurance policy. It really hinges on if your activity is considered a business pursuit.
On a standard farm policy, farming is usually defined as operational agricultural or op agricultural enterprises. This generally includes roadside stands on the property if the products are principally produced by your farm. Beyond that, farming does not include retail activities aside from that and also excludes any kind of processing into another product. This can make taking your produce to a farmer’s market a gray area.
For example, if you run an apple orchard, you’re probably covered on a farm policy for selling apples. But, if you are selling apple cider, there is extra processing there and you’ve changed the product. So, the business exclusion is going to kick in and you may need a specific business activity endorsement on your farm policy or a commercial general liability policy to make sure that operation is covered.
In general, if you are selling your product on a wholesale basis where it’s going to be reused, it’s likely covered on a farm policy. But, if you are selling to end consumers, like a roadside stand, and are specifically providing a service or activity or providing a modified product, then you’re getting away from the traditional basic farming and getting more into a commercial exposure. In these cases, you may need a commercial ag policy or general liability policy in addition to your farm policy.