What Stinks?

What Stinks?

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Animal waste, farm pesticides, herbicides and farm fertilizers are a vital practice in many farm operations to sustain their businesses.

The need for pollution liability insurance is evident for farms whose business involves the application, transport and storage necessary for farm operations.

Many pollution liability policies built in your Farmowner policy will have some of the following reading.

The discharge, dispersal, seepage, migration, release, or escape must be instantaneous and take place at a specific time, place and date during a single 12 month policy period, and result in “bodily injury” or “property damage” within 180 days of the date of the discharge, release, or escape. The most “we” will pay for each “occurrences” regardless of the number of policy periods is $25,000.

The exclusion relating to any loss, cost or expense arising out of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, or in any way responding to or assessing the effects of a claim covered. Losses, costs and expenses must result from a loss away from the “insured premises” and the most  “we “ will pay for the total loss is $25,000 regardless of the number of losses or “occurrences”

Agriculture today is vulnerable to many situations where a pollution issue could happen. Chemical storage buildings could have a fire; a manure lagoon could over flow after extreme rain fall and run off to a neighbor’s property, a fuel tank could rust and seep into the ground.  Another major expense is the fines and penalties by the EPA and DEC. Most policies do not cover the expenses from the fines and penalties.

Environmental clean-up projects can cost millions of dollars today on top of the all too common lawsuits. Not all farms operate with the same needs and your insurance should be created with those needs covered correctly. Finding out you are not properly covered really stinks after a loss happens.  Having a discussion with your insurance agent about the pollution coverage that would be best for your farm may be a million dollar meeting.

 

By Heather Tabor

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