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Wedding Events Bring Increased Risk For Agribusinesses Barns and farms are becoming popular wedding and event destinations, but owners must cover their risks before opening their doors.
Farm Weddings Take The Cake 18% of 2021 weddings were held at farm/barn venues, ranking behind banquet halls (20%) as the most popular venue type, and followed by historical buildings/homes (12%).
By David Espinoza
O
n-the-farm weddings have grown in popularity in recent years as couples seek rustic, unique places to tie the knot. Recognizing an opportunity to add a dependable secondary revenue stream in what can be a volatile industry, many farm, ranch and winery owners are hoping to cash in on the trend. According to wedding website The Knot, barns and farms were the second most popular wedding venue in 2021, behind banquet halls. For owners of such venues, that can mean between $6,000 and $12,000 on average per wedding in rental fees alone. Yet there are unique considerations owners must take into account before opening the barn doors to a wedding. In addition to costly upgrades to property — guests typically expect modern restrooms, for example — getting the proper permits and ensuring everything 50
InsuranceNewsNet Magazine » June 2022
is up to code takes time and money. Hosting special events also requires insurance coverage that isn’t included in most agribusiness policies. The current hard market for property/casualty insurance makes it even more critical to think through these considerations before launching into a new business venture.
Wedding Receptions And Live Events Pose Additional Risks
When deciding whether to host special events, property owners must first assess the potential impact on their primary business — whether it is farming, ranching or winemaking. Is the space where the event will take place located far enough from crops to prevent damage? Can guests be kept away from animals and farming equipment, or is access to livestock and tractors part of the attraction? Will hosting special events inhibit primary revenue streams, such as wine tastings or harvesting?
SOURCE: The Knot
Venue owners also must evaluate the potential impact on the community. How will hosting events affect neighbors’ access to their own property? Traffic, parking and noise are important issues that must be addressed up front. Finally, owners must decide whether they can handle the new line of business. How will they staff events? Who will run the day-to-day operations? Answering these questions will help determine the viability of expanding into the special-event space, and will help address some of the unique liability issues that farmers and other landowners face when hosting special events. The rise in the number of agribusinesses hosting weddings and other special events has brought about a commensurate increase in the number of lawsuits against property owners hosting such events. At the very least, agribusiness owners must expand their P/C policies to include special-events coverage, including general
