| Agritourism and Agritainment - What is it? | | | | The standard farm/ranch insurance policy is intended |
| Those of you who may ask what exactly an | | | | to cover risks associated with normal "everyday" |
| agritourism or agritainment venture is, it is simply | | | | farming exposures. This includes things like driving |
| using existing resources such as farm land or other | | | | your implement down the highway or protecting your |
| natural resources to increase the profitability of a | | | | new pivot system from toppling in the wind. Farm |
| farm or ranch operation. For example, the farmer | | | | policies are not a replacement for commercial |
| who owns 2,200 acres decides to advertise guided | | | | insurance coverage, and this is where the potential |
| hunting on his land for a per-gun or per-day fee. | | | | for a devastating loss occurs. |
| Many landowners in rural America have prime hunting | | | | When the farmowner or ranchowner enters a |
| habitat in the canyons and hills surrounding their fields, | | | | commercial venture that is outside normal farming |
| and allowing hunters to "pay to play" can be an | | | | operations, the farm policy is not designed to cover |
| added source of income for these farmers and | | | | the additional exposures. Specialized commercial |
| ranchers. Other examples of agritourism activities | | | | coverage must be purchased that in many cases can |
| include bed and breakfasts, a day on the farm, | | | | only be secured in the excess and surplus (E&S) |
| pumpkin patches, hayrack rides, horseback riding, | | | | lines market since most admitted farm insurers do |
| cabin rentals, native trail walks, bird watching, | | | | not provide the endorsements required to adequately |
| vineyard tours and more. | | | | provide coverage on the farm policy. The benefit of |
| Liability Insurance is Essential | | | | using a specialized carrier is the coverages may be |
| In my experience with farm and agricultural-related | | | | specifically tailored for your specific activity and |
| insurance coverages, I have had the privilege of | | | | underwriters and loss control will be experienced and |
| working with a premier agritourism marketing | | | | knowledgeable. The drawback is the higher cost of |
| company. This company provides not only an online | | | | surplus lines coverage. There is generally a higher |
| marketplace for agritourism and agritainment | | | | minimum premium associated with surplus lines policies |
| activities, but also analyzes the probability of success | | | | as well as specialized taxes on surplus lines policies in |
| of a new venture and makes recommendations to | | | | some states. |
| help ensure a successful venture. | | | | Conclusion |
| With all the planning and preparation that goes into | | | | Agritourism and agritainment activities are a great |
| starting an agritourism business, one of the most | | | | way to showcase the resources in many rural areas. |
| important pieces of the puzzle is the liability insurance | | | | Insurance coverage is a necessity to protect the |
| coverage for these activities. Many people assume | | | | assets of the landowner because as the saying goes, |
| they will have coverage under their current farm or | | | | 'A day in court can cost you a lifetime of work'. |
| ranch policy. The problem with this assumption is that | | | | Coverage is available for many activities, but your |
| they probably have very limited if ANY liability | | | | local insurance agent may not be the best source of |
| insurance coverage with an unendorsed farm policy. | | | | information concerning these specialized coverages. |
| Some companies do offer hunting and/or fishing | | | | Don't assume you have coverage and don't let your |
| endorsements to their policies, but these | | | | local agent misinterpret policy endorsements. If you |
| endorsements were not intended, nor do they | | | | have questions about your current policy coverages, |
| provide any coverage, for the commercial agritourism | | | | contact your insurance company directly and ask |
| business. | | | | specific questions about your coverages. |
| Your Current Coverage may not be Adequate | | | | |