Liability

Laurie Hodges lhodges1 at unl.edu
Sat Mar 9 19:07:37 EST 2002


I am sorry to hear of your difficulty in getting farm liability insurance and
product liability insurance. It particularly surprises me since you are in
Iowa, not on either coast where everything is astronomical. 

Several growers here in Nebraska have reported getting product liability
insurance for $300-$500. One recently told me he got 6 months of product
liability up to $500,000 for $250 (he sells through several farmers' markets
and only needs product liability for the growing season). He also has other
insurance with the same company (which happened to be State Farm) so they may
have done a deal with a rider to his farm insurance. He said his policy also
included the loss of his product on the way to and from the market. Other
growers have had good experience with Farm Bureau insurance. Sometimes
independent insurance agents can develop a package that suits the market
farmer. We've had two speak with grower groups about insurance needs. At least
some of the Farm Bureau insurance apparently includes off-farm product
liability insurance in with the general farm insurance. I don't know what the
general farm insurance premium is for these guys, only what the product
liability insurance is as a rider on their policies. They are mostly
corn/soybean/cattle operations looking to diversify.  

Be sure to look into any and all types of "group" coverage that you might be
eligible for. I don't have any experience or anecdotes. Only that this is
often
recommended for those who need to self-insure. The AAA, various religious
denominations, fraternities, business or professional organizations offer
group
insurances. Mostly life and health, but it might be worth looking to see if
they also might have some home/farm insurance coverage. 


At 08:05 PM 3/7/02 -0500, you wrote: 
>
> In a message dated 3/7/02 9:45:30 AM Central Standard Time, lhodges1 at unl.edu
> writes:
>
>
>>
>> more than the $300-$500 liability insurance premium. As saying goes,"It's
>> not about you." It is about money
>
>
>
> I have been trying to find affordable insurance for our farm for a number of
> years, let alone product liability, I had to drop mine when the preimum
> reached $ 3600 for six months, just for liability for the farm.  We cash
rent
> the main farm out, 220 acres, and have kept the ground that no one wants to
> pay rent for, rough ground and timber.
> We happen to live on a very high traffic highway and would like to build a
> permit location on this highway for a marketing stand, but the insurance has
> been estimated at $1700 for a six months period, that is a lot of sweetcorn
> to pay for this.
>
> We have never had a claim of any kind on our farm or business but I have not
> been able to find affordable insurance.  I am a wit's end on this insurance
> issue,  I can not find anyone thaqt will insure us for this kind of sum.  At
> least once a month I have someone differnt figure a plan for us, it always
> come's around the area of $600 to $750 a month, take that times 12 and it is
> a lot money out of the household.
>
> Heath Insurance is also very bad for the self-employed our's run's around
> $3200 a year,  there has to be a limit as to how mush money can go out of a
> household for insurance.  We heat with wood so fire Insurance is out of the
> question, even though the furnace was put in by code, they still will not
> insure our house.  Last year only one house in Iowa burned by a
malfunctioned
> wood stove they claim that it is not safe to heat with wood. 
>
> Sorry got off the subject of market farming!
>
> Phil from Iowa. ---
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Laurie Hodges, Ph. D.
Vegetable Specialist, UNL
377 Plant Sciences
Lincoln, NE 68583-0724
402-472-2854; FAX 402-472-8650



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