{"id":1308,"date":"2019-07-22T05:03:00","date_gmt":"2019-07-22T11:03:00","guid":{"rendered":"https:\/\/www.insuringky.com\/blog\/?p=1308"},"modified":"2019-07-17T14:21:06","modified_gmt":"2019-07-17T20:21:06","slug":"farms-and-incidental-business-2","status":"publish","type":"post","link":"https:\/\/www.insuringky.com\/blog\/farms-and-incidental-business-2\/","title":{"rendered":"Farms And Incidental Business"},"content":{"rendered":"\n
\"Incidental<\/figure><\/div>\n\n\n\n

Other than agribusiness ventures, farms are unusual because\nsmaller operations tend to face a mixed bag of loss exposures. Some exposures\nare common to businesses while others are exposures that are often faced by\nhomeowners. This hybrid combination of exposures is due to the fact that\nsmaller farms are usually run by families that also live on the farm premises.\nHowever, often only some of the family members are devoted full-time to their\nown farm\u2019s operation.<\/p>\n\n\n\n

As has always been the case, securing significant, steady income\nand profits from farming is very difficult. Therefore, the farm family may\nchoose to supplement its main farm activity by operating other projects on\ntheir premises. Some may be related to their farming such as:<\/p>\n\n\n\n

\u00b7        \nRunning a petting zoo\narea with some of the farm\u2019s livestock<\/p>\n\n\n\n

\u00b7        \nOffering horse rides<\/p>\n\n\n\n

\u00b7        \nOperating a gift shop or\nproduce stand<\/p>\n\n\n\n

\u00b7        \nPerforming canning\noperations for other parties\u2019 produce<\/p>\n\n\n\n

\u00b7        \nOperating a repair shop\nfor small farm equipment<\/p>\n\n\n\n

\"In<\/figure><\/div>\n\n\n\n

A farm may also involve other, non-farm projects, such as:<\/p>\n\n\n\n

\u00b7        \nOperating a daycare\nservice<\/p>\n\n\n\n

\u00b7        \nFee-assisted aid to\nother farmers on applying for grants and loans<\/p>\n\n\n\n

\u00b7        \nOperating a small\naccounting service<\/p>\n\n\n\n

\u00b7        \nHosting a subscription\nnewsletter service<\/p>\n\n\n\n

\u00b7        \nOperating a pottery\nstudio in a converted farm barn<\/p>\n\n\n\n

In most instances, the farm owner may be able to arrange for\nadditional coverage to be added to the farm policy in order to handle losses\nconnected to the given business operation. Typically, a precise description of\nthe business such as: \u201cJohnson Family Produce Cleaning and Canning Operation\u201d\nis necessary. For an additional charge to the policy, the farm owner can be\nprotected against loss to property that is used in the described business, such\nas a fire in a separate, converted barn that houses an accounting service run\nby the farmer\u2019s spouse. It may also offer liability coverage. Consider the\nfollowing:<\/p>\n\n\n\n

Example: Sara \u201cGranny\u201d Smith owns a large apple orchard. She used to make cider and fruit juice manufacturing company. Since she still owns the building and equipment she used to make her own product, Sara begins a small operation (called \u201cGranny\u2019s Pressings\u201d) to process the apples grown by several neighboring apple farmers. This “side juice from her own crop but she now has an agreement to sell all her apples to the region\u2019s largest business” brings in about $7,000 a year, compared to the nearly $76,000 she takes in from selling her apple crop to the juice manufacturer. Sara\u2019s cousin and insurance agent tell her that she won\u2019t be covered for any damages resulting from \u201cGranny\u2019s Pressings\u201d unless she adds additional coverage for this side-business. He convinces Sara by pointing out claim situations such as:<\/p>\n\n\n\n

\u00b7        \na neighbor who slips on\napple remnants while carrying a bushel of apples onto Sara’s property to be\npressed into cider;<\/p>\n\n\n\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 child from a nearby town who becomes ill after drinking cider pressed at Granny’s that were contaminated with oil used to lubricate the manufacturing machinery;<\/p>\n\n\n\n

\u00b7        \nSara packages a\ntruckload of cider for a neighbor but the neighbor is unable to sell it to any\nstores because the inferior plastic bottles developed hairline cracks.<\/p>\n\n\n\n

If you happen to run a farm that also contains other business\nactivities, it\u2019s important that you discuss the situation with your agent and\nfind the best option for covering the additional source of loss.<\/p>\n\n\n\n

\n\n\n\n
COPYRIGHT: Insurance Publishing Plus, Inc. 2017<\/strong><\/pre>\n\n\n\n
All rights reserved. Production or distribution,\nwhether in whole or in part, in any form of media or language; and no matter\nwhat country, state or territory, is expressly forbidden without written\nconsent of Insurance Publishing Plus, Inc.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Before beginning a search insurance, check your farm insurance policy.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[1499,435,1497,1490,1495,1496,1491,1492,1494,1493,436,840,1501,1502],"class_list":["post-1308","post","type-post","status-publish","format-standard","hentry","category-farm-insurance","tag-daycare-operated-by-kentucky-farmer","tag-farm-insurance","tag-horse-rides-kentucky-farm-insurance","tag-incidental-business","tag-insurance-for-fruit-stand-owned-by-farm","tag-insurance-for-fruit-stand-owned-by-kentucky-farmer","tag-insurance-for-incidental-business","tag-insurance-for-incidental-farm-business","tag-insurance-for-the-incidental-businesses-of-farmers","tag-insurance-for-the-incidental-businesses-of-kentucky-farmrers","tag-ky-farm-insurance","tag-ky-farmers","tag-what-is-insured-by-farm-insurance","tag-will-my-farm-insurance-cover-additional-businesses"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/posts\/1308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/comments?post=1308"}],"version-history":[{"count":1,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/posts\/1308\/revisions"}],"predecessor-version":[{"id":1312,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/posts\/1308\/revisions\/1312"}],"wp:attachment":[{"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/media?parent=1308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/categories?post=1308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuringky.com\/blog\/wp-json\/wp\/v2\/tags?post=1308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}