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(This is part of a continuing series on farm insurance from Nationwide Insurance and on farm income enhancement. Ohio Farm Bureau has sponsored Nationwide since 1926.)

So you’ve got a great idea to increase your farm income by inviting people onto your farm, and you think your regular farm insurance will keep you covered? Think again, according to an official from Nationwide Insurance.

Inviting the public to your farm for educational events or for agri-tourism opportunities can result in a lot of grief, especially if you don’t consider the risks associated with this kind of activity and don’t have the risk management tools to protect yourself against unforeseen events.

Farmers have unique liability concerns surrounding harm that could occur to farm visitors. Unlike visits to a typical residential property, farms have more land, dangerous equipment and machinery, electric lines, bodies of water, storage facilities, livestock and other "exposures" unfamiliar to visitors. The novelty of the farm visit may even encourage visitors to behave differently than they would otherwise.

The workplace most farmers are accustomed to can be a hazardous or even a deadly site for people not familiar with safe, common practices of a farm operation. As a result, visitors increase the potential for injury to themselves, and raise the liability exposure for the farmer as owner, tenant or occupant of farm property.

In 2001, the agriculture, forestry and fishing industry had the second-highest occupational fatality rate according to U.S. Department of Labor Statistics, second only to mining.

"Anytime someone from outside the farm family comes onto the farm, especially for an educational or entertainment activity, there is increased risk of accidents and higher liability exposure for the farm owner," according to Doug Landphair, loss control manager at Nationwide Agribusiness Insurance.

"Nine times out of 10, there may not be a problem. But when one occurs, the farm owner usually is liable, the visitor may sue, and the farmer may not be financially prepared for the consequences," Landphair said. "This kind of situation can put assets at risk if adequate insurance is not in place."

Most insurers prefer farmers to limit their liability exposure by not hosting farm tours and entertainment. But insurers also recognize these activities are gaining popularity. "It’s just important for farmers to understand the additional liability exposure that comes when they invite outsiders to come onto their property," Landphair said.

Nationwide Agribusiness Insurance has guidelines for policyholders who allow farm tours. In many cases, the sponsoring organization’s liability insurance will cover injuries suffered while participants are on the tour, Landphair said. "But the fact that the sponsoring organization has liability coverage does not guarantee that an injured party or their guardians will not also include the farm owner in a lawsuit."

Landphair suggested farm owners discuss liability coverage with their agents as part of an annual review of insurance needs.

"Farm owners who charge for tours or events should purchase Event Liability Insurance to cover additional responsibilities to these visitors," Landphair said.