Whether you have a hobby farm or a large agricultural operation, you can likely benefit from liability insurance. Even if you’re simply selling produce at a local farmer’s market or offering private horse riding lessons, liability insurance can protect your assets if an expensive lawsuit arises from food sickness or injury. Here’s what to know about business liability insurance with OVD Insurance and why your farm can benefit from it.

Why Do I Need Business Liability Insurance for My Farm?

Business liability insurance covers things that your homeowner’s insurance won’t. It can relieve you from liability in the case of claims where, for example, the canned goods you sold to your neighbor accidentally caused them to become severely ill. Even though you’re not a commercial business and just looking to make some profit from your hobbies, you’re still exposed to risk when money changes hands – and therefore, business liability insurance can still protect you from significant financial setbacks.

What’s Considered Commercial?

Personal farms or ranches are typically covered under your homeowner’s policy. However, commercial activities produce income and thus can benefit from business liability insurance. For example, this might be offering berry picking, hosting a roadside stand, or selling hay. Anything that generates cash can be considered commercial under business liability insurance. Additionally, services can also be included under this category. If a neighbor pays you to board a horse, it would also fall under business liability insurance.

What Else is Protected By Business Liability Insurance?

Business liability insurance for your farm can also protect equipment and property you rely on for your commercial activities. For example, farming equipment that is damaged or stolen would fall under this policy, allowing you to repair or replace your equipment promptly so you don’t miss your next harvest. Homeowner’s insurance doesn’t always account for your time restraints, whereas business liability insurance functions under the understanding that you’re experiencing an interruption in your income.

What Isn’t Protected By Business Liability Insurance?

One thing worth considering is that this policy doesn’t always cover public visitors. If they visit your property for commercial purposes, such as picking fruit, interacting with farm animals, or purchasing goods, you might be exposed to risk in the event of an accident. An additional policy might be a good idea if your farm regularly hosts public visitors because it can provide extra protection against liability.

Agricultural Insurance with OVD Insurance

At OVD Insurance, we can work with your farm to find the best coverage for your specific risks. To get started, contact us today by calling or filling out our online form.