Why Farmers Needs Product Liability Insurance

As a farmer, you play an integral role in many key supply chains throughout the United States and beyond. However, as you and your fellow agricultural enthusiasts provide grains, fruits, vegetables, dairy products, meat and poultry to individuals, families and businesses, you must also consider the risk of something going wrong. Defects and inconsistencies in your goods and products can have dire consequences, making it necessary to secure appropriate insurance coverage.

What Is Product Liability Insurance?

As its name suggests, product liability insurance is a specialized form of liability coverage that may financially protect you and your farm if accused of providing inadequate goods. Your policy acts as a contract with your insurance provider; in exchange for your regular (e.g., monthly or quarterly) premiums, you’ll have the right to file a claim for financial aid following incidents involving your products. Product liability insurance is often included in general liability insurance, but it may also be available as a standalone policy.

Why Is This Coverage Important?

Product liability insurance can play a critical role in offsetting the monetary consequences of many common situations. While you may strive to avoid defects or inadequacies in the goods you sell, mistakes are inevitable. Fortunately, suitable product liability coverage could assist in your response to the following real-world scenarios:

• If a customer contracts a foodborne illness after consuming contaminated or spoiled goods that you distributed, your coverage may assist with their medical expenses.

• If a food distributor loses business due to your farm providing inadequate products, they may sue you. Product liability insurance can assist with resulting legal fees and losses.

Get the Right Coverage

Contact Wood Insurance Agency today to learn more about product liability coverage or to get a free quote for a policy tailored to your farm’s needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.