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Because the liabilities that you face with your farm operations are different from those that you face with other business activities, your insurance coverage should be different as well, according to a Nationwide Agribusiness Insurance official.

In the last issue of Buckeye Farm News, the article in this space focused on why your typical farm owners insurance policy doesn’t cover other business enterprises on your farm – even if those enterprises are related to your farm operation. This article should give you some tips on how to make sure you have the correct coverage for those other activities – like agritourism events or a large retail store.

Jerry Hillard, farm owner product officer for Nationwide Agribusiness Insurance, said your liability increases significantly anytime the public comes onto your farm. "Especially if that public includes children."

More farm owners are turning to agritourism activities like hay rides, petting zoos or corn mazes to increase their farm income. With that change, they should also take a look at their liability coverage and discuss those new business opportunities with their insurance agents.

Depending on the level and type of activity, in some circumstances the farm policy can be endorsed to provide the needed protection. For instance with a roadside stand or a pick your own berry patch with a modest income, Hillard said an endorsement can be written to provide coverage with the farm policy. For more intense activity, a commercial liability policy may be needed. If the farm owner is turning toward less typical farm production methods – like adding value to a farm-grown products right on the farm, the farmer should discuss commercial liability exposures with an insurance agent.

If an activity involves a volume of public access to the farm, like agritourism events, your Nationwide agent may want to turn to the Scottsdale Insurance Company, a wholly owned subsidiary of Nationwide. Scottsdale accepts commercial property and casualty risks most standard companies reject, according to information from the company’s Web site. The company opened its doors in 1982 with 12 employees. By its 20-year anniversary, it had grown to be one of the largest excess and surplus and specialty lines carriers in the nation, with 1,100 employees and annual sales in excess of $1.5 billion.

If your activity is a one-time event, you may be able to take advantage of special event coverage for the liability exposure you have from visitors to your farm during that event, Hillard added. Nationwide agents can access Scottsdale to help a farm owner meet those insurance needs.

There are some things you can have prepared before talking with an agent that would make the process easier. Most new business plans will include information like anticipated gross receipts and estimated consumer traffic.

"Make sure your agent is aware of all of your farm and nonfarm business activities," Hillard said. "That way, your agent will be fully informed and will be able to make the best recommendations possible for each situation."

For more information, contact your local Nationwide agent or visit the Nationwide Web site via a link at www.ofbf.org and OFBF Partnerships.