liability protection for maple producers

[ascutneymaple]

I was wondering what people do in the maple industry to protect themselves from the liability of supplying a food product to customers. Is there some type of insurance? Say someone gets sick and blames it on the maple syrup that they ate, how are we protected from a situation like that?

[georgie]

Somewhat may depend on your State. I suggest you have a long chat with your insurance agent.

[PapaSmiff]

I don't have the insurance yet, but have talked to several people about it - except my insurance agent. It seems that most people with farms have it added to their home owners policy and it doesn't seem to be very expensive for as much as $1 Million in coverage. They also seem to have their insurance through companies that specialize in farm insurance.

But talk to your agent.

[happy thoughts]

I was wondering what people do in the maple industry to protect themselves from the liability of supplying a food product to customers. Is there some type of insurance? Say someone gets sick and blames it on the maple syrup that they ate, how are we protected from a situation like that?


Well, I'd think they'd have to prove it and have a good enough case to even get it to trial. But I'm no insurance agent or lawyer. That said, I think the best insurance is having high standards and good quality control.

If I were a commercial producer, I'd probably have more insurance nightmares about having an open house. No knowing what a visitor will go and do to themselves :o

[Kev]

my insurance agent (illinois) said coverage for covering liability for the coffee I roast is substancialy less than covering the liability for people coming in a store front i considered leasing. less than 100 per year for the coffee.
To put it in perspective the same dollars of coverage when my brothers and I trimmed houses was up over a thousand per year and that has been over a decade ago.

[Dill]

Yes you want to talk to an insurance agent. There are a few big areas to cover, your equipment and sugar house. Your basic farm liability, to cover slip falls, dog bites, burns, mainline decapitations etc. Then you are also going to want product liability.
Some companies with small operations will add an incidental farming endorsement onto your homeowners policy. My take is if your selling more than 1k dollars of product you need a true farm policy. Also the coverage for your equipment will probably not be there with a homeowners policy.
If your selling at a farmers market they will be looking for a million of liability coverage including products. So 1 mil, is generally the min that we sell.

[happy thoughts]

If you're really worried about product liabilty, here's a terrific guide from the Ontario Ministry of agriculture, food and rural affairs. It leaves nothing out, from lot management to syrup production and equipment cleaning. There are also suggestions for a lot tracking system and many types of forms for record keeping.

Even if you don't live or sell in Canada, I think this is worth a read through because of it's best practices approach. No one produces more syrup than Canada, nor do they have as much to lose if something damages the reputation of the maple syrup industry.

https://ospace.scholarsportal.info/bitstream/1873/2366/1/260382.pdf

[vtmapleman]

I would hope that anyone that advertizes their sugarhouse as open to the public would carry Liability insurance not to mention product liability insurance. The cost is minimal considering the ramifications if someone was to get injuried or god forbid sick. Forget about proving who was at fault the cost of hiring a lawyer at $200 per hour can set you back a bunch of money.

[markct]

very well put, someone told me once its not the fact that your could be proven guilty, its that you can go broke defending yourself! i am insured thru farm family insurance, they have a great package sorta tailored to the hobby farmer as most of us are

[PerryW]

We use Farm Family Insurance Company. I forgot the specifics, but they seemed to cater to small (and large) farm operations.

[WESTVIRGINIAMAPLER]

I have worked in insurance for 15 years and would recommend you carry some type of liability insurance. Yes, I know odds are low anything would happen but in the event it does, .......... I have a commercial policy that has 43k on building, 15k on contents, 15k on tractor and high completed products liability. I costs me just under $ 700 yearly and I don't like paying it but better safe than sorry. The high liablity I carry covers people helping me and customers coming to sugarhouse and on property.

[SeanD]

Hey Brandon,

Is that in addition to your homeowner's coverage or included?

I'm in the process of changing companies and I'm adding the new sugarhouse to the policy. I already have personal and medical liability coverage on my home. That would cover anyone who gets hurt in the sugarhouse or anywhere else on the property, right?

I'm not a farm or a business, but I will have the scouts and other people over.

Thanks,
Sean

[WESTVIRGINIAMAPLER]

I do have a state business license(agricultural) and I have a commercial policy that is totally separate from my homeowners policy. My sugarhouse is close to 30 minutes from where I live, thus the separate policy.

[SeanD]

Got it. Thanks.

Sean

[gmcooper]

I see some of the posts keep refering to adding coverage to homeowners insurance. I'm not sure if any companies will actually add coverage for maple syrup or any ag production to a homeowners policy any more. Some agents may try to add to a policy to keep a long time customer happy (including our old one) but the company probably will not actually provide coverage. As soon as a product is sold most homeowner policies will not cover anything related to it. Over the past year people we know from around the country have lost their insurance for things like selling the extra eggs from 6 chickens, kids selling surplus veggies from the garden, selling a horse they don't use so they can buy a better one(agent saw the forsale ad). So I would imagine the response if they knew someone selling 25 gallons of syrup they would hesitate to inform you that you are not covered. Hiding the fact you sell maple syrup or other ag products from your insurance company will not get you coverage if someone files a claim against you.
The insurance topic has been a huge issue with several ag commodities we deal with and everyone seems to be struggling to get coverage.

[PapaSmiff]

I recently contacted a local insurance company that specializes in farms. I will be leasing most of my trees, since I do not have a farm or any wooded property. I'm not sure it's actually ADDED to your Homeowner's policy, but they package it all together. Here is the response from the agent.

"Leasing the property is not a problem. You would need to join the MA Farm Bureau for $180/year membership. You can join through our office.
We offer a comprehensive farm package which would cover your home (replacing Homeowners policy), outbuildings, equipment, and products and supplies if you so choose, and liability including product liability.
Depending on what is covered, annual premiums may range from $800 - $2,000. In order to give you a more accurate quote I would like to meet with you at your convenience to design an insurance plan that will fit your needs. "

[gmcooper]

Papasmiff,
Thats the best way to get the coverage you need. Farm Family or Farm Bureau insurance. Arcadia Ins is now specialzing in farm policy in northeast now as well. I'm sure there are others out there. Many times they can put a package together to cover everything, auto, farm, home, small business, liability at a decent rate.

[maple flats]

If you can not afford the insurance you can't afford to make syrup.
I carry insurance, building, equipment, liability on premesis, product liability and fire. I buy through Farm Family and it is very reasonable. I am also covered for people being hurt on my blueberry farm, u-pick operation. They also insure my vehicles, rental properties, homeowners and all.
Just consider what you would lose if just one lawsuit was filed, even if you win the case you lose. Lawyer fees will kill you. I also insure my leased bushes for liability. The certificate says "name (landowner) also insured" The policy protects you and the landowner from lawsuits in case of an injury or worse.

[WESTVIRGINIAMAPLER]

For your syrup, you need what is referred to generally as "COMPLETED PRODUCTS AND OPERATIONS" coverage.

[TroutBrookSH]

I have a Farm Family policy that covers home, farm, and products. Thanks to maple flats, I'll get language added for the leased bush too. For NY producers, join NY Farm Bureau and you get a discount factored in.

[Dill]

NH and VT members of their maple association get their discount through CO-OP insurance.
One thing to make sure if that your covered for completed products. Some companies automatically cover them, and some companies charge an extra fee. But you want the product liability.
For leased bushes I usually add the location and the bush owner as an addtional insured.