Farm Insurance for Small Maple Syrup Producers

[kboone1]

Good afternoon all!

I have been a member for a while and read a lot if things on here, but this is my first time to post anything, so I apologize if I am a bit unclear on what I am asking. I have read through the other insurance threads and got some good information, but my questions is a bit more specific, so here it goes.

I have made syrup the last 3 years (this is my 4th), getting bigger each year. This year I started a farm (sole proprietor) to try and recoup some of my investment moving forward and get the tax advantages of the costs. This year I built a sugar shack and added quite a bit of infrastructure to get ready for more growth in the future, as I am hoping to produce around 40 gallons or so. I called my insurance agent (currently only homeowners/vehicle/personal liability) and asked what we could do to add a farm policy to my current plan (Erie). He made some calls to the underwriter and they refused to add a rider to the policy since there would theoretically be "food consumption", so my agent is stating that I will have to open a full commercial policy including liability. Also, Erie states they will not renew my policy unless I provide proof of commercial coverage due to the increase in liability. The quote for $5,000 in contents (okay for now, will need raised in the future) and $300,000 liability is $530 per year, so needless to say I am a bit taken back since I am looking to gross about $3,000 this year.

If this is necessary, I will eat it, but I didn't know if you guys/gals had some similar situations that you may be able to shed some light on for me. Can I get a separate policy through another company out of my area? If so, any suggestions? Should I start shopping again for a total bundle?

I really appreciate any thoughts in advance! Sorry for the long post, I just am a bit set back here, and it is getting super close to go time here in WV! I included a picture for reference if that could help.

Kody

19184

[S.S.S]

I just took out a food liability policy $300 a year for 2 million dollar limit

[ALSMAPLE]

Good afternoon all!

I have been a member for a while and read a lot if things on here, but this is my first time to post anything, so I apologize if I am a bit unclear on what I am asking. I have read through the other insurance threads and got some good information, but my questions is a bit more specific, so here it goes.

I have made syrup the last 3 years (this is my 4th), getting bigger each year. This year I started a farm (sole proprietor) to try and recoup some of my investment moving forward and get the tax advantages of the costs. This year I built a sugar shack and added quite a bit of infrastructure to get ready for more growth in the future, as I am hoping to produce around 40 gallons or so. I called my insurance agent (currently only homeowners/vehicle/personal liability) and asked what we could do to add a farm policy to my current plan (Erie). He made some calls to the underwriter and they refused to add a rider to the policy since there would theoretically be "food consumption", so my agent is stating that I will have to open a full commercial policy including liability. Also, Erie states they will not renew my policy unless I provide proof of commercial coverage due to the increase in liability. The quote for $5,000 in contents (okay for now, will need raised in the future) and $300,000 liability is $530 per year, so needless to say I am a bit taken back since I am looking to gross about $3,000 this year.

If this is necessary, I will eat it, but I didn't know if you guys/gals had some similar situations that you may be able to shed some light on for me. Can I get a separate policy through another company out of my area? If so, any suggestions? Should I start shopping again for a total bundle?

I really appreciate any thoughts in advance! Sorry for the long post, I just am a bit set back here, and it is getting super close to go time here in WV! I included a picture for reference if that could help.

Kody

19184If Farm Family is in your area I've had good luck and reasonable prices with them.Never heard anything bad from anyone

[maple flats]

Check around, you can do better than that.

[Russell Lampron]

Find out if you can get Co-Operative insurance in your area. They specialize in farm and agricultural insurance. I have all of my policies through them and they are reasonably priced.

[Dennis H.]

Check around, I ran into the same thing.
My homeowners do not do food type coverage either.
So I looked around and found a good one for right at $300 per year.

[bmbmkr]

Check into the WV Maple Syrup Producers Association, They are a great resource, some have probably been in your shoes already- and will be glad to share info, too hard to do everything else in this industry by yourself.

I'm tappin and boiling in OH just across the river- but born and raised in Salt Rock WV down south of Huntington.

[NH Maplemaker]

If they are in your area check with Farm Family. Had them for years an they cover my whole farm with product coverage plus all my autos They paid on a couple of real bazaar claims here with no problem. one being a 1500 gallon poly sap tank rolling into the side of my pickup truck. Long story!

[maple flats]

When you find a company who does farm insurance think hard about your liability limit. If you ever had a claim, 300,000 does nothing. I carry 2 million. It should be enough to insulate you from liability. Just think about law suits you read about in the paper and see on the news. Like the "lady" who got burned because she put a cup of hot coffee in her lap while driving and got burned when it spilled. You need to realize that judges do not throw out enough cases when the one suing was just stupid. Like Forrest Gump said, you can't fix stupid.
You want to be protected so the one making the suit does not just go after you once the limit has been met.
On my 2 mil. policy I don't pay as much as you were quoted for $300,000. You will find also that the price between a $300,000 policy and $2 million will be very little. I have $2 mil liability and if that is used up, I also have a $2 mil blanket policy (and both combined total less than what your quote was). It is all based on what you have to lose. We are in different states and you will need to find a company licensed in WV.
You also need to realize that you do not even need to be at fault to be sued.

[kboone1]

Thanks, everyone! I will definitely check into Farm Family, as well as any leads I can get from the WV Maple Syrup Producers Assoc, I do know a few people very involved so that is a great call. I also will check into the Co-Op, have some Farm Bureau people close as well and will try them for any ideas.

Maple Flats, on the limits, I would never think a $300,000 limit as practical, but I was just showing how crazy I thought that was. I will be looking at a $2 million business alongside my personal 2 million. You are 100% correct, price differences just aren't that much, agree completely!

Thanks again everyone, this is a huge help in the right direction.

[kboone1]

Dennis H., was your find a local or regional? I see you are probably from PA? Thought it may not be a bad idea to check. Thanks!

[Dennis H.]

It is thru Erie Insurance.
I think it is for 2 Million liability. It will cover me if I do farmers market or events like that. I just need to add the name of the Farmers Market to the policy.

Funny thing with Erie is that when my wife had them as auto insurance that would not add me because I had a 88 ford mustang, a 4 cycle kind! SO we dropped them and went with someone else.
So when I was checking around for insurance for my maple operation I did not have very high hopes when I called the local erie agent I was expecting to get a quote and move on to another insurance company. But they had the best price and the agent was really easy to work with.