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The Bearcats recent success, including going 10-1 in 2018, hasn’t gone unnoticed. 2019 is a redistricting year for Kentucky High School Football. Anderson’s relative enrollment trends have dropped the Bearcats from 5 to 4A.
It would seem logical that by dropping down a class would be a positive for Anderson County. Apparently, the folks at Max Preps agree as their Pre-season Rankings have the Bearcats ranked #8 in 4A, and #34 statewide.
Redistricting occurs every four years in Kentucky. It’s the States mechanism aimed to create fair Sports competition between Kentucky high schools. A Fair and Balanced approach aimed at leveling the playing field. But does it?
Following the redistricting, Anderson County finds itself in Class 4A District 5. A district that includes:
Lexington Catholic….Perennial Powerhouse 2 x State Champs (’05, ’07) Runner-up (’15) Ranked #6 Preseason Kentucky 4A, # 31 Kentucky Overall
Bourbon County State Champs (’97)
Anderson County Runner-up (’11)
WOW! Class 4A has 38 teams scattered over 8 Districts. In a Fair and Balanced World, on average each District would have 1.25 teams in the top 10. District 5 has 3, the #1, 6, and 7th ranked teams
In the last 22 years, the four combined have one 11 State Championships and pay in 14 Finals. Did someone say something about Fair and Balanced?
We’re insuring Kentucky, just not on Friday Nights.
If protecting one’s home isn’t complicated
enough, it appears that the soft, soothing glow of a candle’s flame may obscure
some dark problems. Specifically, the use of candles may result in:
reducing the internal air quality of your home
increasing the chance of fire losses
damages by particulate deposits on interior and exterior walls, carpets, furniture, appliances, window treatments, floors, and other surfaces
Further, the use of candles may
also contribute to health problems from inhaling particulate matter or
ingesting harmful chemicals.
Defining the Candle Problem
Today’s candles can be more of a hazard than an aid.
Actually, there are a number of
problems and they have been accentuated by a change in the market for candles.
The last few years have seen an explosive growth in the popularity of candles.
They are increasingly used for their traditional, decorative purpose, but the
true surge in use has been due to their being marketed as scented candles for
deodorizing and for a health-related purpose called aromatherapy.
In both of the above,
sales-boosting instances, candle-makers have had to offer products with more intense
scents. This is accomplished by adding scented oils into their wax mixture. The
increased oil content causes candles to burn improperly and generates a
substantially higher level of soot.
A Sooty Situation
It looks like soot, which is a
carbon residue produced by burning, can create a large, expensive problem.
Since soot is particulate matter that can be carried through the air, it can
seriously stain walls, carpets, and personal property. Studies show that
electronic and plastic components are also vulnerable to soot damage.
Unfortunately, soot produced by poorly burning candles bonds very strongly,
making it difficult to impossible to clean. Further, soot may contaminate a
home’s heating system, including ductwork. The soot can then be spread
throughout a home, creating widespread damage that is difficult to repair.
Property stained by soot may have to be cleaned by professionals and, often,
the property has to be replaced.
Troublesome candle ingredients
Do you know what’s in your candles?
You may have assumed that the only materials found in candles were the wick and some type of wax. Surprise! Here’s a list of ingredients which may either be found in a candle or maybe created during combustion:
Another surprise is that the candle-making industry is not required to tell consumers about the ingredients used in their products, including when a wick is used which contains a lead core.
Poor candle design or practices
Are candles with high flames or a lot of soot safe?
Besides the use of oils and
chemicals, candle-makers sometimes create problems because they commit other
mistakes. Candles may burn improperly (causing soot) because a candle’s wick
may be off-center or there may not be a proper amount of air in the candle
mixture. A candle may have a higher likelihood of causing a fire loss due to:
an improper candle mixture which results in intense heat or high
flames
improper holders (glass that shatters or spills flammable liquid)
wood holders that catch fire
flammable items imbedded in the candle mixture such as potpourri
Coverage Under
a Homeowner Policy?
Are you covered for losses started by candles?
Damage to a home or personal
property due to soot can create serious problems for both an insurer and a
homeowner. Losses involving soot can create thousands of dollars in damages.
Depending upon the details surrounding a loss and the wording of the particular
homeowner policy, coverage for the damage may not be available. Why? Because the source of loss might be considered the result of
pollution which may be excluded. Another reason for rejecting a claim
may be an assumption that the damage was gradual instead of sudden, so it
wouldn’t be considered accidental and sudden damage. A claim could even be
affected by the knowledge of the insured. For instance, even if the policy
covers soot-related losses, a claim could be denied if a homeowner knew that
the type of candle they used could cause damages.
Since the damage is caused by
matter that is invisible to the naked eye, it could be difficult to prove that
the loss was sudden. Tests can be used to determine the cause of stained or
discolored property, but the testing can be expensive and the cost may have to
be handled by the homeowner.
What To
Do?
It’s all up to you. You might wish
to ask more questions about the type of candles you use or curtail your use.
You can also discuss whether coverage is available under your homeowner policy
with an insurance professional. If you do use candles frequently, you may also
want to check your home thoroughly for any stains or discoloration, including
any contamination of your heating system.
COPYRIGHT:
Insurance Publishing Plus, Inc. 2016
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rights reserved. Production or distribution, whether in whole or in part, in
any form of media or language; and no matter what country, state or territory,
is expressly forbidden without written consent of Insurance Publishing Plus,
Inc.
This article briefly discusses how a homeowner policy responds to
coverage for exchange students. Please be sure to read the companion article,
“Exchange Students – Automobile Coverage.”
You have an Exchange Student, Now What?
Note: Check
with your exchange student program coordinator to see what kinds of coverage
are automatically provided for the child. But don’t take anyone’s word; get
copies of documents that prove the coverage situation.
An exchange student in your care who is younger than 21 years is automatically insured under a homeowners policy, treated as if the child were a relative. An exchange student’s property is covered while located at or away from your home. Off-premises coverage is normally limited to 10% of your policy’s Personal Property limit, subject to a minimum of $1,000. On-premises, the policy’s full content limit is available. If your homeowner’s policy had a $70,000 limit for Personal Property, up to $7,000 would be available to handle damage or loss to an exchange student’s property while it’s away from your home, say while at a summer camp. Liability coverage that applies to your family also applies for damage and bodily injury caused by an exchange student who is younger than 21 years of age.
how to prepare for an exchange student.
If the exchange student is older than age 21, then the policy treats the student as a guest. A policy owner can volunteer to extend his insurance coverage to include a guest’s property while at your residence premises or even while you and the guest are at some other location. However, it is sometimes difficult to determine whether an older exchange student is a guest or a tenant – someone who is paying you a reasonable rent for staying in your home.
Hosting an exchange student creates questions you should discuss
with an insurance professional who can help make sure your coverage needs are
met.
COPYRIGHT: Insurance Publishing Plus, Inc. 2017
All rights reserved. Production or distribution,
whether in whole or in part, in any form of media or language; and no matter
what country, state or territory, is expressly forbidden without written
consent of Insurance Publishing Plus, Inc.
Is Roofers Insurance expensive? Top tips for saving.
How
much do Roofers pay for insurance?
A lot!
Even compared to other high-risk occupations, their insurance seems high. Workers Comp rates for roofers can be as much as eight times that of Fire Fighters. They also have higher General Liability rates than other contractors.
The steeper the workplace the steeper the premium. Ask a Roofer!
Why
is insurance so expensive for roofers?
If you own a roofing business, then you know that roofing is a precarious business. Roofing is reported by many to be one of the five most dangerous occupations. As a result, insurance companies pay out more and higher claims. To offset the high losses, carriers must charge risky occupations higher premiums.
Gravity
or Gravity
Why is roofing so risky? The term “What goes up, must come down,” maybe the best answer to that question. Enhancing roofer safety starts with identifying how gravity increases risk. The following are a few of the more difficult issues to overcome:
Roofing is a Risky Business
·
Roofers perform a labor-intensive job in unusual work-spaces
·
A floor that has a 25 to 40 Degree slope, and even steeper
·
Working as much as 80 feet off the ground
·
Falling items can accelerate to a speed of 25 to 30 MPH.
Gravity is also defined as something extreme or seriousness. The Gravity of insuring roofers lies with their work-space.
Roofing businesses attempting to reduce the cost of insurance need a plan. The best place to start is with better risk management. The following areas provide a good starting point:
·
Roofers pose a threat to non-related individuals on the job site at the same
time.
·
Regardless of weight, falling objects can lead to serious, even
life-threatening injuries.
·
Potential for increased frequency and magnitude of liability and Work Comp
claims.
Is
it possible to reduce the cost of roofers insurance?
Yes, it is, and this post aims to point you in that direction. If you think that you can’t save money on insurance for your own roofing business, your wrong. First of all, there are a handful of insurance companies that do a better job with the industry. As a result, they often have lower premiums that their competitors. Actions on your part can also have a substantial impact. Risk Management offers another route for roofers to save on insurance. Taking an active role in the process will eliminate or reduce certain risk. The long term impact should reduce insurance claims. There is also a positive impact on the roofing business via lower-cost insurance.
The nature of the industry demands attention to detail. Ongoing risk awareness is critical. Business owners should leverage this knowledge into constantly improving safety protocols. Failure to do so will increase the potential for injuries and property damage. As a result, there will also be upward pressure on your insurance premiums. Poor Risk Management is negative for any business. But for industries considered to be high-risk, like roofers, the impact is even worse.
Insurance
is only one part of risk management
Five
primary strategies which Individuals and Business use to manage risk:
·
Risk Avoidance More attractive than practical, this effort attempts to
eliminate risk.
· Risk Transfer Insurance: Insurer indemnifies consumer in exchange for a premium.
· Risk Reduction Limiting risk by altering
processes, procedures, or equipment.
· Risk Retention Consumer retains all or a
portion of the risk.
· Merged Strategies Combining two or more of
the above.
Buying high deductible insurance combines risk transfer and risk retention.
Insuring everything isn’t an option for most. Even for those that can, it isn’t the most optimal solution. It is often more cost-effective to manage risk using one of the other risk management strategies. One example of this has been a dilemma that roofers have been faced with.
In
recent years, Kentucky Roofer’s insurance claims have been higher than
expected. The weather played a role but in this case, discrepancies go beyond
the actions of Mother Nature.
The
culprit: Nail Guns!
As roofers have transitioned from hammers to nail guns, problems soon followed. Shingles were blown off shortly after new roofs were installed. Often under fairly modest wind conditions. A growing stream of adverse reports followed. With product lives nowhere close to advertised, the problem had to be found. In the end, the finger of blame was pointed at roofers. Specifically, those using nail guns.
Problems with nail guns were soon seriously scrutinized by everyone. From Insurance companies to Angie’s List. The issues were simple. Should roofers use nail guns? If so, then what could roofers do to reduce losses?
There is little doubt that there was a strong preference for the use of nail guns. At least from the vantage point of roofers. There has also been awareness of the losses. Especially by those in the insurance industry and dissatisfied homeowners. What would be done if the rising loss trend could not be turned? If not and if roofers continued using guns, would insurance costs rise for roofers?
How
much would insurance premiums go up for roofers?
The answer. The roofing industry would soon see tremendous rate increases for General Liability Insurance.
Insuring the risk associated with the use of nail guns was not an optimal solution. To continue using them, the industry had to rein in claims associated with nail guns.
The Answer, a Risk Management Process
Risk
Management Process
1.
Research and Identify Risk
2.
Risk Analysis and Evaluation
3.
Risk Remediation
4. Ongoing Monitoring
Nail missed shingle
The
risk identification and analysis indicated the following issues:
•
Proper nail gun pressure-DO NOT tear through the shingle
•
Nails must be driven through the tar line.
•
Nail flush to the shingle
•
Adjustments to equipment settings for inter-day changes in the ambient air
temperature.
•
Experience is always important. We become more discerning when insuring roofers
using nail guns.
Risk
Reductions, a Path to Reducing the Cost of Insurance
Incorporating the Risk Management Process leads to a positive outcome. It created a path for the continued use of roofing nail guns. Raising awareness of the associated problems, roofers could implement effective new work processes. These changes would put the industry on a path to significantly reduced claims.
With shingles under control, customer satisfaction should notably improve. Better roofing jobs will also get the attention of the insurance industry. With fewer claims, it’s fair to assume that losses are declining. In a vacuum, reducing losses should put downward pressure on insurance premiums.
We started this winding path with roofers trying to use roofing nail guns. Roofers using nail guns were aimed at increasing efficiencies and reducing cost. A noble goal. A goal achieved by understanding that insurance isn’t the only tool for managing risk. An achievement delivered when industry partnered with insurance to create a common goal. An achievement born by the willingness to reduce risk has improved an industry. Roofers and insurance working together have increased efficiencies and cost savings a reality.
As a lucky owner of a
timeshare arrangement, you may have a special coverage need. While insurance is
readily available for individually owned seasonal or secondary residences,
buildings, vacant land, or personal property; a timeshare arrangement may not
be handled by standard homeowner coverage forms. Coverage gaps may exist
because typical timeshare arrangements involve:
real property with multiple owners
living units that are often furnished with personal property that may be jointly or severally owned
living units which are occupied by several individuals or families who have control of all of the property during their time of occupancy
special agreements or stipulations that govern the property’s use.
Here are some steps to
prepare for a discussion of your coverage situation:
Do you need insurance for a Timeshare?
1.
Collect all of your timeshare-related paperwork, especially the contract that
describes your ownership interest and obligations in the timeshare property.
2.
Be open to securing more than one policy to cover the jointly owned property,
any personal property that’s located at the residence, the joint liability
exposure and any special assessments or liability assumptions agreed to under
any contract.
3.
Be reasonable about coordinating coverage needs among the timeshare’s other
owners. Doing so will help make certain that all needs as met at the time
coverage is initially purchased and later, should coverage circumstances
change.
4.
Be flexible. Proper coverage may have to be provided by a specially modified
personal insurance contract or even some form of commercial coverage may be
necessary.
Since coverage needs can
vary substantially from one arrangement to the next. It is important that you
discuss your current coverage needs with a qualified agent. Don’t leave the
meeting with any unanswered questions. Ask that any points be fully explained
to you in order to make sure that you’re protected adequately and affordably.
COPYRIGHT: Insurance Publishing Plus, Inc. 2016
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or in part, in any form of media or language; and no matter what country, state
or territory, is expressly forbidden without written consent of Insurance
Publishing Plus, Inc.
It’s quite likely that you face many demands…a job, family, hobbies, volunteer work, children’s school, and recreational obligations. Those items don’t cover chores, such as the lawn and garden, house cleaning, repairs and on and on. Like many of your peers, you might find that you just don’t have the time to get all of it done. Also, like many of your friends and neighbors, you may be “outsourcing” some of your responsibilities. Increasingly, people are hiring others to either assist or to take over duties such as:
child-rearing
gardening
decorating
housecleaning
laundry
grocery shopping
personal errands
child-transport
minor home repairs
lawn maintenance
meal preparation
exercise
While such help used to fall under the auspices of butlers, maids, and nannies, today, individual specialists are providing similar services on either a part-time or full-time basis.
Personal Services and
Personal Liability
Many service providers have insurance
When personal services
are provided by employees of a commercial business, such as a limousine
service, laundry service or a lawn care company, there’s generally no need to
worry about being held liable for injury to another person or for damage to
their property.
Example: The Burlies never had time to take care of their
lawn. As their grass grew thinner and the weeds spread, Mr. Burlie decided to
sign-up for the “Green Thumb” package from Lucy’s Lawn Services. One
afternoon, a Lucky Lawn specialist arrived at the Burlie’s home, unraveled a
hose and began to spray weed killer. A few minutes later, Stevie, who lived
several homes away from the Burlies, came rushing by on his skates.
Stevie didn’t see the hose until it tangled his wheels and sent him
headlong onto the cement sidewalk. In this instance, Lucky’s Lawn Services
would be responsible for the injuries.
However, as individuals
are hired by Joe and Jane America to perform personal services, the
responsibility for injuring other people or damaging the property of others may
begin to fall upon Joe and Jane. In these cases, will Joe and Jane have any
help in paying for damages or injuries?
Homeowners Insurance to
the Rescue
Homeowner’s Insurance
A person who employs the services of another may be held legally liable should the “employee” cause an accident. Can the average person who is guilty of nothing more than trying to make their lives a little less hectic depend upon their homeowner’s insurance for protection? Well, coverage depends upon the details surrounding an event. Generally, a homeowners policy will exclude coverage for losses that are related to the covered person’s (insured’s) business or when other coverage, such as workers compensation or disability insurance, should apply to the loss.
Handyman
Example: Molly Kelp really likes her neighbors’ son,
Peter, who is home from college. Molly knows that Peter is struggling for money
to keep attending school, so she occasionally hires him to do jobs around her
home and yard. One day, she asks him to trim the branches of a tree that is in
the front of her home. The branches are low enough to disturb traffic in the
street. Peter jumps down from the ladder he’s using for the job at the same
time that a car is passing by. The ladder tips over and crumples car’s hood as
well as smashes out the windshield. The driver slams on his brakes and is
severely cut-up in the process. In this case, Molly’s homeowner policy may
apply to the damage and injury caused by Peter. Why? Because the work was
strictly related to maintenance of Molly’s residence and premises. If Peter
caused an accident while carrying a ladder to paint Molly’s law office which is
housed in a converted bedroom of Molly’s home, the loss would be excluded from
her policy.
Do Your
“Homework” On Personal Services
If you’re not sure about
what happens when a person you hire causes a loss, you need to do your
homework. Discuss the details with an insurance professional and bring a copy
of your insurance policy. Between the two of you, you should be able to make
sure that your needs are covered.
COPYRIGHT: Insurance Publishing Plus, Inc. 2015
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rights reserved. Production or distribution, whether in whole or in part, in
any form of media or language; and no matter what country, state or territory,
is expressly forbidden without written consent of Insurance Publishing Plus,
Inc.
Insuring Mobile and Manufactured homes can be a challenge.
Insurers commonly
provide coverage for mobile/manufactured homes by modifying a conventional
homeowner policy with provisions called endorsements. The endorsements change
key definitions and other elements of a conventional policy to fit a mobile or
manufactured home situation. The result is a modified homeowner package that
protects the home, outbuildings (unattached garages, sheds, etc.) and personal
property. They also provide insurance for personal liability. Regardless of the
type of home you own or live in, it is important that you learn about the coverage
options that are available. You may find that different policies vary
considerably in coverage and price.
Coverage for
mobile/manufactured homes is generally offered using two approaches. Some
policies include a laundry list of items (or perils) that may cause a loss.
Other policies protect your home against everything EXCEPT for a host of
specified perils. Either approach includes liability coverage that protects you
for injuries or losses to others which you accidentally cause.
Property Insurance Needs
Any coverage option you
choose is likely to reflect the fact that mobile homes are, well, mobile.
Therefore coverage is affected by the fact that mobile homes:
are able to move under their own power (or are capable
of being easily transported);
are more susceptible to wind damage,
tend to lose value with age.
Can your house be insured at multiple locations?
The mobility of such homes creates a special need to protect the financial interest of the business that lent the money to purchase the home. For example, a mobile homeowner who lives in Ohio decides to drive his home to Arkansas. The soon-to-be Arkansas resident “forgets” to mention his plan (and his new address) to his Ohio Mortgage Company. The Ohio lender would be out of luck if the policy didn’t include protection for this whimsical act. Another way in which mobile or manufactured homeowner policy differs from conventional homeowner coverage involves coverage for unattached buildings. This coverage is usually minimal for, say, $2,000. Such a provision helps keep the premiums for policies lower by avoiding paying claims on very low-value structures. The coverage is likely to be offered on an actual cash value basis. Unfortunately, mobile and manufactured homes tend to lose value over time.
The policy is likely to include a provision that requires you to get permission to move your home. Once granted, you’re likely to get thirty days of special transportation protection for collision; sinking, upset or stranding (a special, a higher deductible may apply during the move). Another common coverage feature is coverage for your attempt to move the home in order to prevent damage from an insured cause of loss. For example, you move your mobile home fifty feet to get away from a neighboring trailer that is on fire. IMPORTANT: coverage for moving endangered property usually has a modest limit (several hundred dollars is typical) because of owners who may be too heroic or clumsy for anyone’s good.
Liability Insurance
Needs
The liability protection connected with mobile or manufactured homes is, for all practical purposes, identical to the liability provided to conventional homeowners. Why? The likelihood of guests to be hurt at your home, or your probability of being sued, tends to be the same. The important thing to remember is that your agent is a tremendous source for getting the information you need to be sure that your home and property are adequately protected at a reasonable price.
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or in part, in any form of media or language; and no matter what country, state
or territory, is expressly forbidden without written consent of Insurance
Publishing Plus, Inc
DUI! What does that term
conjure up? Do you think of:
A person staggering out of a bar, car keys in hand and stumbling toward a car?
Some woman, standing alongside a police car while an officer watches her attempt to touch her nose?Â
A sober friend arguing with a drunken companion to surrender his or her keys?
A patrol officer sidling up to a car with sickly sweet smoke rolling out of a car as an obviously “high” driver lowers a car window?
DUI or DWI, the results are the same
Whether the term used is DUI or DWI, the assumption is usually that a driver is unable to safely operate a car because of alcohol or illegal drug use. Another assumption is that such drivers are fairly easy to identify. Unfortunately, there is another type of impaired driving that causes serious problems for everyone….Driving Under the Influence of prescribed drugs.
The proper use of
prescription drugs is a good thing. However, the problem is that prescription
drug users overlook an important consideration. Besides using the right dosage
and the correct intervals of use; instructions often include another item that is
ignored – avoiding driving after the legal use of medicine.
Impaired by Prescription Drugs? Don’t Drive!
Prescription drug labels include a warning not to operate vehicles or machinery when using the applicable drug. The warning is necessary because many medicines cause drowsiness, sleepiness or decreased awareness or reaction time. Naturally, being behind the wheel of a vehicle under such circumstances is dangerous to the driver, any passengers, other drivers, and pedestrians.
Drivers who are impaired
by prescription drugs are subject to the same serious legal consequences as
persons caught driving while drunk or under the influence of illegal
substances. However, they’re not as easily identified or caught. Being drunk or
high is typically accompanied by obvious signs, such as slurred speech or impaired
movement. The influence of prescription drugs is not as obvious; even though
the level of impairment is similar. Drivers influenced by prescription drugs
often lack the judgment and response levels necessary to safely drive on public
roads.
Operating a vehicle while legally drugged does not have the stigma of the influence of either alcohol or illegal drugs; yet it has the same, potentially lethal consequences. It is dangerous and irresponsible to endanger ourselves and others by driving a vehicle under less than ideal conditions……and doing so after taking powerful, prescription drugs are the antithesis of what is ideal. So take drugs as needed and as instructed and that includes following any orders to stay away from driving!
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Other than agribusiness ventures, farms are unusual because
smaller operations tend to face a mixed bag of loss exposures. Some exposures
are common to businesses while others are exposures that are often faced by
homeowners. This hybrid combination of exposures is due to the fact that
smaller farms are usually run by families that also live on the farm premises.
However, often only some of the family members are devoted full-time to their
own farm’s operation.
As has always been the case, securing significant, steady income
and profits from farming is very difficult. Therefore, the farm family may
choose to supplement its main farm activity by operating other projects on
their premises. Some may be related to their farming such as:
·
Running a petting zoo
area with some of the farm’s livestock
·
Offering horse rides
·
Operating a gift shop or
produce stand
·
Performing canning
operations for other parties’ produce
·
Operating a repair shop
for small farm equipment
A farm may also involve other, non-farm projects, such as:
·
Operating a daycare
service
·
Fee-assisted aid to
other farmers on applying for grants and loans
·
Operating a small
accounting service
·
Hosting a subscription
newsletter service
·
Operating a pottery
studio in a converted farm barn
In most instances, the farm owner may be able to arrange for
additional coverage to be added to the farm policy in order to handle losses
connected to the given business operation. Typically, a precise description of
the business such as: “Johnson Family Produce Cleaning and Canning Operation”
is necessary. For an additional charge to the policy, the farm owner can be
protected against loss to property that is used in the described business, such
as a fire in a separate, converted barn that houses an accounting service run
by the farmer’s spouse. It may also offer liability coverage. Consider the
following:
Example: Sara “Granny” Smith owns a large apple orchard. She used to make cider and fruit juice manufacturing company. Since she still owns the building and equipment she used to make her own product, Sara begins a small operation (called “Granny’s Pressings”) to process the apples grown by several neighboring apple farmers. This “side juice from her own crop but she now has an agreement to sell all her apples to the region’s largest business” brings in about $7,000 a year, compared to the nearly $76,000 she takes in from selling her apple crop to the juice manufacturer. Sara’s cousin and insurance agent tell her that she won’t be covered for any damages resulting from “Granny’s Pressings” unless she adds additional coverage for this side-business. He convinces Sara by pointing out claim situations such as:
·
a neighbor who slips on
apple remnants while carrying a bushel of apples onto Sara’s property to be
pressed into cider;
·        child from a nearby town who becomes ill after drinking cider pressed at Granny’s that were contaminated with oil used to lubricate the manufacturing machinery;
·
Sara packages a
truckload of cider for a neighbor but the neighbor is unable to sell it to any
stores because the inferior plastic bottles developed hairline cracks.
If you happen to run a farm that also contains other business
activities, it’s important that you discuss the situation with your agent and
find the best option for covering the additional source of loss.
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whether in whole or in part, in any form of media or language; and no matter
what country, state or territory, is expressly forbidden without written
consent of Insurance Publishing Plus, Inc.
Farms and ranches differ from other business operations since, at least with small to medium operations, the owner both conducts his business and lives with his entire family on the same premises. Therefore, a farm or ranch has a combination of commercial and personal loss exposures that must be properly insured.
One coverage method
might be to use commercial policies to handle the business needs and personal
(auto, home, recreational vehicle, etc.) policies to tackle the personal needs.
However, such a combination of policies would be awkward and expensive.
Further, the method would allow a large number of coverage gaps and overlaps. A
much better approach would be to use a product that satisfies all potential
coverage needs in a single policy.
The differences among
various farm and ranch operations certainly complicate the task of finding
proper coverage. Successful farmers and ranchers tend to be specialists, yet
are flexible in order to run efficient operations. Fortunately, farms and
ranches have a number of elements that are common to all operations, so
products have been developed for this challenging market.
One standard farm
program uses a cafeteria approach to offer coverage. The owner of a farm or
ranch operation may choose to have only Farm Property and Farm Inland Marine
Forms to address the property coverages, but use the
Commercial General Liability Forms for the liability coverage exposures. They
may choose to use the Farm Umbrella or a Commercial Umbrella with a Farm
Endorsement. A Homeowners policy may be used on the dwelling but a Farm
property coverage form on everything else.
Options are an important
feature of a good farm program. The following, basic coverages
are widely available:
   The Farm Property Policy – covers farm-related buildings (residence, barns, sheds, silos, etc.)
   The Farm Inland Marine Policy – covers farm-related machinery and equipment
  The Farm Liability Policy – protects against damage or injury caused by farming/ranching activities
 The Farm Umbrella Policy – provides a higher level of liability protection
The Farm Combination Policy– offers a way to bundle stand-alone farm/ranch coverages into a single package
The more flexibility
offered by a program, the greater the chance that an insurance professional can
assist a farmer or rancher with developing an effective insurance plan.
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