Insurance is very important to farm operations

By Gary Sliworsky
OMAF/MRA Rep.

It may not be a topic you like to talk about, but insurance is very important to your farm operation. It is imperative that you have a full and frank discussion with your insurance agent or broker about your farm liability insurance.
The agent or broker should be advised of all activities that the farm operation participates in. He/she needs to know what activities (“exposures”) you have to be sure that you are adequately protected against the possibility of a significant financial burden.
Today’s farm business is no longer isolated from the public, from the view of visitors to the farm, the products you produce and activities you undertake away from the farm. Any of these activities may result in a “third party” alleging that through your negligence you have caused them to suffer Bodily Injury or Property Damage. Claims of this sort are on the rise in Ontario and hence, liability insurance is extremely important.
It is common for the liability policy to cover the farm operator, spouse, their children (while living in their household) and employees (while doing the farm business work). Coverage is normally provided for your legal liability for:
-occurrences arising out of your personal actions;
-occurrences arising out of your premises;
-occurrences arising out of your family activities.
The insuring company will defend the insured against civil actions and assumes the right to make negotiations and settlements, as it deems expedient.
Due to the high liability payouts by the courts, everyone is encouraged to carry more than the $1 Million Liability Insurance (basic farm liability limit). Discuss this cost with your agent. However, adding an additional $1 or $2 Million coverage is relatively cheap. Also, it is possible to buy umbrella liability insurance, at a reasonable cost, that is on top of the basic automobile and farm or other liability coverage.
Sadly, the highest demand for insurance may be at a time when you feel you can least afford it or after something has happened to you or your family. Careful study of your options, use of appropriate deductibles, additional endorsements etc. and the advice of your agent/broker will hopefully create an affordable package to provide the protection that you need or should have.

Events to Remember
Mar. 29 - Emo and District Lions Club annual Farmers Night,
Barwick Community Hall, social begins at 5 p.m. with dinner at 6:00p.m.