MONDAY, APRIL 28, 2014
Do you own a farm or maybe you have a large garden and sell at the Farmers Market. If that is the case, be sure to check with your farm insurance policy or homeowners insurance policy to make sure coverage extends to the market. Below is a great article from State Auto Insurance Companies farm underwriter Susan Chivoitti. The best course of action if you don't know, is to contact your agent to make sure that you are properly covered.
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 What is Community Supported Agriculture?
by Farm and Ranch Underwriting Manager Susan Chiovitti
There has been a noticeable shift in the demand for locally grown, seasonal products and the avenues to access local produce have expanded in response to this demand. It's not uncommon for a farmer to set up a farm stand on the farm premises to sell the fruits and vegetables they've grown. Often times the stands are unattended and rely on the "honor system." There is coverage for this exposure in the unendorsed Farm and Ranch policy as long as the farm products are produced by the insured and there is no additional retail or business activities taking place. What if the insured also participates in farmers' markets off premises? Coverage is available for farm products raised on the insured location and sold off premises by adding the Incidental Business Activities endorsement for farmers markets. There is a premium charge for this exposure based on receipts.
Another increasingly popular avenue for the insured is the CSA or "community supported agriculture." Simply stated, this is a shared risk between the farmer and the member. Typically the member pays up-front for a share of weekly produce throughout the growing season. The contents and amount vary week to week depending on what is in season and growing conditions with the understanding that there is some risk involved. Some CSAs will accept labor in exchange for money for a weekly share. Once the growing season is in full swing, shares are either picked up at the farm by the customer or delivered to a specified location for pick-up. How does the Farm and Ranch policy respond? There is coverage in the unendorsed Farm and Ranch policy when shares consist solely of the insured's unaltered farm products and they are picked up at the farm by the members. If the shares are supplemented with products of others, processed farm products and/or delivered by the insured, the policy will need to be endorsed with Incidental Business Activities.
There are many variations of community supported agriculture so it is best to contact your agent to ensure there is proper coverage on the farm and ranch policy.
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