Agritourism businesses need specialized insurance coverage

BY KATHY DIXON

Berry-picking season is almost here, and with ripe berries come eager farm visitors.

If you’re a farmer who operates a U-pick farm or agritourism business or are thinking of starting one, now’s the time to make sure you have appropriate insurance coverage.

“Farmowners get excited about starting an agritourism operation and having people come out and visit their farm. That’s the fun part,” noted Scott DeNoon, senior farm product and underwriting manager for Virginia Farm Bureau Mutual Insurance Co. “But don’t get so caught up in the excitement of inviting guests onto your farm that you forget to get adequate insurance coverage. If something unforeseen happens, you don’t want to be stuck without it.”

Many property owners falsely assume that a farmowner policy will cover liability claims on an agribusiness operation. But that’s not the case, DeNoon said.

An agritourism endorsement needs to be added to an existing farmowner policy to cover additional pursuits that involve the general public. “We have the ability to insure 74 different agritourism events,” DeNoon said.

Among the covered agribusinesses are bed-and-breakfast establishments, hayrides, farm tours, U-pick operations and wedding/event venues.

Policyholders can add an agritourism endorsement any time during the year, but DeNoon advised that farmowners make sure the policy is in place before each activity season begins.

Family-owned Richlands Dairy & Creamery in Nottoway County sells homemade ice cream and offers hayrides and other family activities. They have carried an agritourism endorsement since they opened in 2013.

“We are excited about agritourism and love to show transparency in agriculture,” noted Brittany Jones, one of the farm’s owners. “The public loves to get outside and learn about our farming operation from cow to cone. However, accidents can occur at any time, and allowing the public on our farm creates an added level of risk.

“We plan to continue farming and allowing the public to learn about agriculture for years to come, which is why having the appropriate agritourism coverage is crucial.”

An agritourism endorsement will cover accidents or injuries that happen to visitors while on the property during the activity. “When you invite the public onto your premises, as the owner of the business, you owe them the highest degree of care,” DeNoon said.

The cost of an agritourism endorsement varies depending on the type and size of the operation. A basic rule of thumb is that the more visitors you have on the property, the more expensive the coverage will be.

Anyone who currently is operating an agribusiness or anyone considering adding an extra element to the farm should contact their insurance agent. “Our agents and underwriters are well-versed in agritourism coverage,” DeNoon shared. “We want to help our farmers, and we support agritourism operations.”

Agents can visit farm properties and assess the agritourism component before giving farmowners a quote on the endorsement. “We want to make sure your insurance agent knows what’s happening on the property, and the best way to do that is to show them.”