The agriculture industry is a key pillar of the United States' economy and an indispensable part of our food supply system. That's why agribusiness insurance is absolutely critical for protecting feed manufacturing operations, grain warehousers, growers, packers, shippers, and other commercial agribusinesses from liability or losses related to extreme weather.

In 2023 alone, natural disasters, including drought, excessive heat, wildfire, flooding, and hailstorms, caused more than $21.94 billion in crop and rangeland losses, the American Farm Bureau Federation reported.

Agribusiness insurance solutions can help guard against the business impacts and liability from:

• Loss of buildings, stored commodities, or livestock

• Fire, smoke, and explosions

• Damage to equipment and agricultural infrastructure

• Business interruption

• And more

The Need for Commercial Agribusiness Insurance

The agriculture industry must follow the Food Safety Modernization Act, which aims to keep our food system safe and ensure that agricultural operations remain healthy and sustainable. Due to federal law, business operators must employ best practices, hazard analyses, and risk prevention measures.

However, even when feed manufacturers, grain operators, and other commercial agribusinesses are compliant with regulations and best practices are followed, each season can bring its own challenges and setbacks.

Some exposure scenarios agribusinesses may face include:

• Claims Against Over-the-Road Vehicles

  Whether they manufacture feed, store grain, or deliver nursery products, agribusinesses need to transport their products to or from their property. These typically large and expensive vehicles can cause serious financial damage and bodily harm if there is an accident. Without the proper insurance coverage, such a mishap could have an adverse business impact.

• Wind, Hail, and Tornado Damages

  Severe weather events like strong winds, hail, and tornadoes can cause serious damage or destroy buildings, vehicles, and machinery, resulting in financial loss. Securing the right agribusiness insurance can help businesses avoid long-term repercussions if a big storm comes their way.
  
  Note: Tornadoes and strong winds can also cause water damage to property, so it is important to also consider PHLY Flood Coverage.

What Commercial Agribusiness Insurance Coverage Is Right for Your Operation?

Each agriculture operation has its own unique set of liability exposures, so business owners need an insurance policy tailored to their business. However, there are several important coverages of which agribusinesses should be aware and consider when evaluating their insurance needs, including:

• General Liability - General liability insurance covers a wide range of claims that can be brought against commercial agribusiness operators, including personal injury claims brought by third parties, property damage, and damage to products caused by things like fire or lightning, wind, hail, or flooding.

• Business Auto Liability - Every licensed vehicle utilized for agribusiness operations should have insurance. If employees are using their own vehicles for business purposes, they may require commercial auto insurance as well. Agribusinesses may also need cargo insurance to protect products being transported.

• Property Coverage - Agribusinesses need commercial agribusiness property insurance to protect commercial structures, business personal property, machinery, and more. Policies with a broad definition may also cover sewers, building foundations, underground pipes, flues, and drains.

• Theft and Crime - This coverage can cover losses related to employee theft, equipment theft, or credit card and identity theft.

Get to Know The PHLY Difference for Agribusiness Insurance

Philadelphia Insurance Companies (PHLY) has more than 60 years of insurance underwriting experience. PHLY offers flexible policies that can be customized with a wide range of enhancements to suit the needs of each agribusiness operation.

PHLY also offers a wealth of risk management resources, including safety program development, site surveys, and training, to help agribusiness operators avoid situations of liability exposure.

Visit PHLY's Commercial Agribusiness Insurance product page to learn more about our coverage options.