Buyers such as chefs, food service directors, retailers, etc., can vary in their exact requirements for insurance coverage. Growers and producers should communicate with buyers about their requirements for insurance coverage. Carrying product liability insurance is a reality for anyone marketing to restaurants, retailers, and larger food service institutions. The investment you make in insurance helps protect both your farm's assets and the customers who are buying your product. The amount of coverage expected can range from one million to three million dollars in umbrella coverage, but don't let these numbers scare you. Have a conversation with your insurance agent to see what coverage works best for you and your buyer(s).
Insurance
Important notes about Insurance
Helpful Insurance Tools
- MarketReady Checklist for Insurance | UK MarketReady. This checklist is intended as a reference point for self-examination of your business practices to evaluate readiness for commercial markets and as a checklist for communicating expectations held by specific buyers.
- Product Liability Insurance Importance & FAQ | UK Center for Crop Diversification. This publication discusses the purpose and importance of product liability insurance, along with frequently asked questions.
- Product Liability Insurance | Penn State Extension. If you are adding value to or direct marketing all or a portion of your crop, this document contains information for your operation.
- Farm Liability Insurance | University of Missouri Extension. This guide is intended to help farmers review their farm’s general liability insurance policy to determine if it covers all the actions and consequences that are crucial to the business’ viability.
- Check out these videos on insurance (crop insurance specifically) from our friends at the Kentucky Horticulture Council.
- Six Steps to Determining the Right Insurance Plan | Agri-Services Agency. If you are considering working with a new insurance provider, these steps can help you find a plan that is right for you, your family, and your operation.
MarketReady's Best Practices for success
- Discuss insurance requirements with buyers. Having an open conversation with your buyers about insurance requirements will prevent confusion and ensure that both parties are satisfying each other's requirements.
- Have the necessary product liability that applies to your farm operation and products.
- Communicate with your insurance provider regarding any changes you wish to make to your policy. Always ask for written confirmation about important details regarding your policy.
- Abide by the rules of the Food Safety Modernization Act (FSMA) whether you are required to or not. If you are unsure if FSMA applies to your operation, check out this Standards for Produce Safety flowchart.
- Be aware of the regulations around fresh items that are consumed raw or cooked, as well as value-added items.
* Disclaimer: We are not an insurance agency. We are here to guide producers in the world of insurance, but we are not the end-all, be-all. For the most current, up-to-date regulation and coverage information, please speak with your local insurance agent.