Agribusiness Insurance
What You Need to Know About
Agribusiness Insurance
Since 1956, RJ Ahmann Company has been a premier provider of insurance for agribusinesses nationwide.
Should your business be protected by agricultural insurance?
If you're an agricultural-based business, fighting the forces of weather, animals and the business world is all part of the job. High winds and early frosts may not matter much to a traditional retail business, but for an agribusiness operation, it could mean the difference between an extremely profitable year and bankruptcy. If you answer "yes" to any of the questions below, you should consider agribusiness insurance.
- Do you grow or pack produce?
- Are you a food processor or manufacturer?
- Do you operate a grain elevator?
- Are you an agricultural co-op?
- Do you operate a feed mill?
- Are you a dairy product manufacturer?
- Do you process meat or poultry?
- Do you own a wholesale nursery?
- Do you bottle beverages?
- Do you own a vineyard, winery or brewery?
What is agribusiness insurance?
Agribusinesses have all the typical coverage needs of any business – property insurance, liability insurance, workers' compensation – and more. In addition, the agribusiness community faces many unique risks. Agribusiness insurance helps protect your equipment, your crops, your livestock and your livelihood.
Finding the right protection is more than just buying coverage. Your insurance partner needs to understand the industry's inherent hazards and the requirements of regulatory and HAACP compliance. Without the right partner and insurance protection, your livelihood could be at stake.
Below are some important agricultural insurance coverage considerations:
- Food borne illness: One of the biggest liability exposures for agribusinesses is food borne illness. It seems like every month there are news stories of processors going bankrupt due to food borne illness. The well-publicized story about a fast food restaurant with an E. coli outbreak proved to be a very expensive lesson for the beef producer who contaminated the food chain. It's important for agribusinesses to make sure adequate insurance limits are in place and coverage is written properly.
- Product recall: Product recall is a major issue for agribusinesses, especially in relation to food borne illness. Product recall coverage has two components – first party and third party. For example, if you are a cheese plant that has to pull recalled product from grocery stores, your first party coverage would cover your own costs expended on recalling and destroying the cheese, and your third party coverage would cover the cost of reimbursing grocers and wholesalers for the costs they incurred.
- Equipment breakdown: When a key piece of equipment unexpectedly breaks on a production line, the business process can be interrupted for weeks or even months with devastating results. It's important to have the appropriate equipment breakdown and business interruption coverage in place.
- Pollution: Pollution insurance protects against animal waste and other pollution risks, such as fuel or chemical spills and dust, when the pollution incident originates from your site or your agricultural product. Pollution exposure carries into the biofuel arena as well. If your business involves biofuel production, make sure to visit our energy page.
- Animal mortality: For larger growers and processors, animal mortality coverage can be essential. Take the turkey business for example. Many companies do everything from hatching and growing birds, to packaging and marketing them, which provides many risk exposures. Animal mortality insurance covers the loss of an animal resulting from an accident, injury, sickness or disease, and can sometimes be extended to cover voluntary destruction for humane reasons.
- Weather: Weather insurance helps protect businesses from the volatility of nature. For example, if the rainfall is too great at harvest time, corn will be left in the field. RJ Ahmann can structure an insurance product to hedge against the financial loss caused by such weather risks. You may also find that off-premises power coverage is a smart tool to protect against production loss due to weather-related power outages.
A smart solutionIf you need agricultural insurance, or if you just want to learn more, RJ Ahmann can help. With specialized expertise and relationships in the agri insurance marketplace, we've helped hundreds of businesses grow with tailored agri business insurance protection. Our experienced agricultural insurance experts will help you obtain comprehensive, cost-effective insurance coverage – tailored for your business's unique needs.
To ensure that you get the strongest insurance protection at the best rates, we...
- Have deep experience in the agribusiness and food processing industry.
- Have access to agri specialty insurance carriers that most agencies do not have.
- Uphold preferred relationships with major environmental impairment liability insurance carriers.
- Are members of Midwest Food Processors Association.
Ready to Learn More? RJA is Ready to Help with Solutions for Agricultural Insurance!