- Author: Chris M. Webb
This great piece of news recently came in courtesy of UC’s Small Farm Program.
The search for liability insurance to cover agritourism activities may have just become a little easier. The American Association of Insurance Services (AAIS) has created a new product, now approved for California insurance companies to offer as an option for farmers and ranchers who expand their operations beyond producing crops.
Traditional farm commercial liability programs usually exclude coverage for educational and recreational activities undertaken for compensation, but the new Agribusiness Commercial General Liability (AgGL) program covers B&Bs, mazes, tours, hunting and fishing, farm parks, and other activities offered by agritourism operators.
AAIS Vice President Debi Summerlin explains that the new program gives the insurance company tools to be able to charge premiums for these activities by providing ratings for many classifications of tourist activities. Most exposures to risk for agritourism activities are rated based on receipts earned, so an operator can pay a lower premium when starting small.
If you are interested in this new program, ask your current insurance agent to investigate how AgGL might work for your business. Your agent might need to contact AAIS to find a company carrying this product.
To find a local farm or ranch to visit, check out this previous post!