What You Need to Know
New Opportunities and Risks for Montana Farms
Agritourism, or agritainment, is a growing trend in Montana, offering farmers and ranchers new ways to generate income while educating the public about agriculture.
Activities such as farm tours, pumpkin patches, petting zoos, and corn mazes provide visitors with a fun and educational experience.
However, these activities also bring unique risks, making Agritourism Insurance an essential part of protecting your farm and ranch.
What Is Agritourism Insurance?
Agritourism insurance is designed to cover the specific risks associated with inviting the public onto your farm or ranch.
Standard farm insurance may not fully cover the exposures that arise from agritainment activities, which can range from visitor injuries to property damage.
Standard farm insurance may not fully cover the exposures that arise from agritainment activities, which can range from visitor injuries to property damage.
Agritourism insurance ensures that your operation has the proper protection for these liabilities.
Common Agritourism Activities
Agritourism activities can vary widely, from casual farm visits to fully-fledged entertainment experiences. Common agritourism activities in Montana include:
- Farm tours and educational workshops
- Pick-your-own fruit and vegetable operations
- Corn mazes and pumpkin patches
- Petting zoos and animal interactions
- Wine tastings at vineyards
- Farm stays and rural accommodations
- Agricultural festivals and seasonal events
While these activities can bring extra income and community engagement, they also introduce risks, such as visitor injuries, property damage, and food safety concerns.
Why Do You Need Agritourism Insurance?
Inviting the public onto your property increases your exposure to liability. Without proper coverage, a single accident could result in costly lawsuits.
Agritourism Insurance protects against these risks by covering injuries, property damage, and potential business losses.
For example:
- Injury Liability: If a visitor slips and falls during a farm tour, agritourism insurance can cover medical expenses and legal costs.
- Property Damage: If farm equipment or structures are damaged during an agritourism event, your policy can cover the repair or replacement costs.
- Food Contamination: For farms that offer food or beverages (e.g., farm-to-table meals or wine tastings), coverage for foodborne illness or contamination can protect against related claims.
What Is Covered Under Agritourism Insurance?
Agritourism insurance provides coverage that extends beyond what standard farm and ranch policies offer. Here’s a breakdown of what’s typically covered:
1. Liability Coverage
Liability is the core of any agritourism insurance policy, protecting against claims of bodily injury or property damage. This coverage is critical when hosting events, farm tours, or other activities where visitors interact with your property and animals.
- Visitor Injuries: Coverage for medical expenses and legal costs if a visitor is injured on your farm.
- Property Damage: Coverage for damage to a visitor’s property while on your farm.
2. Property Coverage
This covers your agritainment property, including buildings, equipment, and supplies used in agritourism operations. Whether it’s a barn used for events or a corn maze, your agritourism insurance policy will ensure these assets are protected.
- Buildings and Structures: Coverage for barns, event spaces, and other structures used in agritourism.
- Equipment: Protection for tractors, wagons, and other farm equipment used for agritainment activities.
3. Food Contamination Coverage
Agritourism often involves food, whether it’s a farm-to-table event or selling goods at a market. Food contamination coverage can protect you if an incident of food poisoning occurs on your farm.
- Coverage for Medical Costs: Pays for medical tests and treatments for affected visitors.
- Income Loss: Covers lost income if your agritourism business is temporarily shut down due to contamination.
4. Extra Expense Coverage
Agritourism insurance can also cover extra expenses incurred during an interruption of your agritainment activities. For example, if equipment is damaged, your policy can help cover the cost of renting temporary equipment.
- Machinery or Equipment Breakdown: Covers rented or borrowed equipment necessary for agritourism events.
- Event Cancellation: If your agritourism event is canceled due to damage or loss, your insurance can help recoup lost income.
5. Designated Event Exclusion
Farmers and ranchers who host multiple events throughout the year may want to exclude certain events from their agritourism coverage. The Designated Event Exclusion allows you to specify which events you want to exclude from coverage, helping to control costs and tailor your policy to your needs.
Special Agritourism Endorsements
Many insurance providers offer specialized endorsements to address the specific needs of agritourism.
Many insurance providers offer specialized endorsements to address the specific needs of agritourism.
These endorsements can expand your policy to cover unique risks, such as:
- Agritainment Liability Endorsement: Extends liability coverage for agritourism-related activities and ensures proper protection for visitor injuries, property damage, and accidents.
- Agritainment Property Endorsement (FP 05 05): This endorsement offers coverage for property used in agritourism activities, including buildings, machinery, and vehicles. It can also cover livestock and other animals used in entertainment or educational activities.
Coverage Extensions and Additional Benefits
Agritourism insurance often comes with additional coverages and extensions to better protect your operation. These include:
- Refrigeration Breakdown Coverage: Up to $1,000 in coverage for spoiled products if refrigeration units used for agritourism fail.
- Credit Card Fraud: Up to $3,000 in coverage for theft or unauthorized use of credit cards issued to the insured.
- Record Restoration: Up to $2,000 for the cost of restoring lost records related to agritourism activities.
Common Exclusions in Agritourism Insurance
Like any insurance policy, agritourism insurance has its exclusions. Common exclusions include:
- Wear and Tear: Routine maintenance and general wear and tear are not covered.
- Intentional Damage: Damage caused intentionally by the insured or visitors is excluded.
- Contraband: Any property used in illegal activities is not covered.
How to Get Agritourism Insurance in Montana
Agritourism activities can transform your farm or ranch into a vibrant, community-focused business, but they also bring additional risks.
By working with an insurance agent who understands the unique exposures of agritourism, you can ensure your farm is properly protected.
At Armor Insurance Agency, we tailor insurance policies for Montana farmers and ranchers, including those offering agritourism.
We’ll work closely with you to evaluate your needs, identify potential risks, and recommend the best coverage options for your operation.
FAQs
What is agritourism insurance?
Agritourism insurance provides liability and property coverage for farms and ranches that host public activities like farm tours, events, and petting zoos.
Why do I need agritourism insurance?
Agritourism introduces new risks, such as visitor injuries or property damage. Standard farm policies may not fully cover these exposures, making specialized insurance essential.
What does agritourism insurance cover?
Coverage typically includes liability for visitor injuries, property damage, food contamination, and loss of income due to equipment breakdown or event cancellations.
Are my events covered under a standard farm policy?
Standard farm policies may not cover events or agritourism activities. You may need to add an agritourism endorsement to ensure full protection.
Can I exclude certain events from my agritourism insurance?
Yes, with a Designated Event Exclusion, you can specify which events to exclude from your coverage.