[Market-farming] how much insurance?
kakerby at aol.com
Sun Apr 27 02:50:20 EDT 2014
We were getting ready to attend an orientation next week on a new farm
product sales venue opening up near us. It's not a farmers' market per se,
but one of those new food hubs that are starting to sprout up. We worked
with them a few years ago when they were under different management, which
went smoothly We were getting ready to do so again this year, until we
heard they were going through a reorganization. Hmm. So we got the info
packet to see what had changed in the reorganization. Amongst other things,
they have a new list of "qualification criteria", and one of those items was
liability coverage for farm products. No problem, we've got it and we've
had it for years. But then I read the fine print - we need $2 million per
occurrence, AND we need to add that venue as an additional insured on our
policy. Excuse me?
I have already called my insurance broker to find out what that extra
insurance would cost us, and what the implications would be to add that
venue as an additional insured on our policy. I've been doing some reading
tonight on what other farmers' markets and the like are requiring. More and
more markets are requiring some kind of liability insurance, but the
per-occurrence rates have been a lot lower in the few instances where I
could find specific numbers listed. One market for instance, wanted
$100,000 per occurrence, another wanted $1 million aggregate but no specific
per-occurrence, a third wanted $500,000 per occurrence, etc. None of them
said anything about being listed as insureds on the individual farmer's farm
So now I'm wondering if I'm just not seeing a true representative sampling
of the range of requirements, or if this new venue is perhaps setting a high
bar in anticipation of what's to come down the pike in the near future, or
maybe they're just really out of touch with what everyone else is doing.
Frankly, I'm not sure we'll bother at this point with that new venue. There
are some other hoops they want us to jump through which I remember thinking
"well, hmm, that's a little odd but OK..." But if this additional insurance
is going to really boost our yearly premiums, I'm going to have to think
long and hard about whether it's worth it. So I'm very interested in what
other folks are seeing in their markets and/or other marketing venues, in
terms of required insurance and at what levels. Thanks all....
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