When you envision farms, images of pristine green fields, towering stalks of corn, and expansive blue skies likely come to mind. It’s a scene that suggests purity, sustainability, and nature in harmony.
Yet, beneath this idyllic surface lies an intricate web of potential pollution hazards. From unintended chemical runoffs to leaking storage containers, farms are not exempt from environmental challenges. For this reason, it’s more important than ever that farmers get financial protection from pollution events through insurance with pollution liability coverage.
In this article, we’ll dissect the nuances of Distinguished’s pollution liability coverage for farms, how it can help farmers, what it covers, and the benefits of partnering with Distinguished for all of your agricultural clients. This way, you’re equipped to help farmers understand how pollution insurance is a key way they can safeguard their livelihoods from unexpected pollution incidents.
Why Do Farms Need Specialized Pollution Insurance?
Chemicals have become a staple of modern agricultural practices. They’ve allowed farmers to kill weeds, improve yields, and so much more. However, when these chemicals end up where they’re not supposed to be, they can create pollution events that threaten water supplies, local communities, and other farms in the area.
These events represent a financial threat to farms that, unfortunately, are not covered by most standard Commercial General Liability (CGL) policies. So, if liquid fertilizer leaks from a storage container and impacts local groundwater, your client could be on the hook for cleanup costs and any litigation resulting from that event.
Other common claims we see from agricultural clients include:
- Accidental release of anhydrous ammonia
- Overspray of chemicals impacting neighboring communities
- Release of wastewater or sanitation chemicals from food processing operations or waste lagoons.
Any one of these incidents could result in huge liability bills for your clients. For instance, in May 2023, Tyson meat packing plants were forced to pay around $4 million in fines due to a series of ammonia leaks at their facilities.
These kinds of leaks are more common than they should be, and when they happen, they can result in inhalation injuries from third parties. These injuries can quickly amount to over a million dollars in bodily injuries and legal costs.
Without specialized pollution liability coverage, your client may be without insurance when dealing with these kinds of problems.
What Does Distinguished’s Farm Pollution Liability Cover?
At Distinguished Programs we can offer Farmers Pollution Coverage through our Pollution Legal Liability Plus program. With this kind of insurance policy, farmers may be eligible for coverage for exposures like:
- Business Interruption: Ensures compensation for income loss and related expenses when business operations are halted or hindered due to pollution-related incidents. This coverage includes contingent business interruption and delay costs for new pollution conditions.
- Emergency Cleanup Costs: Coverage that provides for immediate expenses related to urgent cleanup and remediation efforts after a pollution event.
- Disaster Management and Subpoena Expenses: Covers costs associated with managing a pollution crisis, including public relations efforts and expenses incurred when responding to legal subpoenas.
- Upset and Overturn Related to Transportation: Coverage specifically for incidents where transported materials cause pollution events due to accidents or other mishaps during transit.
- Non-Owned Disposal Site (NODS) Coverage: Protects against pollution-related claims that arise from waste disposal sites not owned by the insured party.
If you have any questions about the specifics of our coverages, please feel free to reach out to our support team or check out this article on our Pollution Legal Liability Insurance for more details.
Who Would Benefit From Distinguished’s Pollution Coverage?
Most farms will have some kind of environmental or pollution exposure that could lead to liability claims down the line. However, we find that the following kinds of farms are most likely to need this sort of policy:
- Controlled atmosphere storage operations
- Fertilizer and agricultural materials storage, distribution, and retail sales
- Orchards or other kinds of growers
- Farms involved in food processing
However, just because these are the most common farm related clients, we see doesn’t mean we won’t entertain other kinds of clients. To see whether your client would be a good fit for our PLLP program, feel free to reach out to our support team.
What Are the Benefits of Partnering with Distinguished?
When you collaborate with Distinguished for your farm related pollution liability insurance needs, you’re not only getting access to our comprehensive policies and programs, but you can also benefit from our:
- Expertise: Our team boasts seasoned underwriters with over 300 collective years in the environmental insurance sector.
- Swift Submission Turnaround Time: Our team prides itself on prompt response times, typically within 24 to 48 hours of submission receipt.
- Tailored Solutions: We craft specialized solutions catering to the distinctive needs of each farm and its associated risks.
- Dedicated In-House Claims Team: We know how much even a slight reporting delay in response to an environmental event can cost your client. That’s why speed and expertise are built into every stage of our claims process.
- 24/7 Emergency Support: In collaboration with Cura, we provide nationwide emergency response support for pollution-related emergencies.
Partner With Distinguished For All of Your Agricultural Clients
Acquiring our pollution liability coverage for your farm and agricultural-related clients is streamlined and hassle-free. To begin, register your agency to gain access to our online portal. After that, fill out the appropriate application form and send it to Doug Stepenosky at DStepenosky@distinguished.com.
With your application, make sure to include a current statement of values for all locations to be covered. This will help us get a quote back to you as soon as possible.
It’s worth highlighting that farm related pollution liability isn’t the only coverage we specialize in. Browse through the links below to see the other various environmental insurance solutions we could help you offer your clients:
- Environmental and Construction Professional Insurance Overview
- Owner’s Professional Protective Indemnity Plus
- Follow Form Excess Liability
- Contractor’s Pollution Liability Plus
- Contractors Pollution and Professional Liability
About Distinguished Programs
Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.