Agricultural operations play a major role in today’s pollution concerns. They often discharge large quantities of agrochemicals, organic matter, drug residues, sediments and saline drainage, which could potentially impact nearby bodies of water and threaten aquatic ecosystems, human health and reproductive activities.
While some insurance policies offer protection for certain types of pollution-related events, many exclude pollution liability coverages. Such policies leave your agriculture clients to fend for themselves and attempt to adhere to the complex environmental regulations and requirements set forth by the government.
We encourage you to visit our agriculture resources below to learn about the impact environmental pollution exposures may have on your clients' farm operations and to discover the right coverage solutions for them!
Environmental Insurance for Agriculture FAQs
At Great American we understand environmental liability can be highly complex. To help you better understand these complexities and how your clients can obtain policy protection against them, our underwriting professionals have answered the following frequently asked questions!
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Why is environmental protection important for agricultural clients?
Environmental insurance is a specialized coverage for losses incurred as result of a discovery, third-party allegations, or regulatory actions arising from a pollution release at or migrating from an insured property, or because of contracting services performed for a third-party. Coverage enhancements include liabilities resulting from non-owned disposal sites, transportation, contingent business interruption and first-party diminution of property value.
Typical coverage addresses:
- Bodily injury
- Property damage
- Clean-up costs
- Defense costs
From chemical overspray to a leaking aboveground storage tank, your agricultural clients may not recognize the environmental pollution exposures lurking in their operations and the costly consequences they may have on their business.
In addition to obtaining farm insurance, why is environmental protection important for agricultural clients?
While some insurance policies offer protection for certain types of pollution-related events, many exclude pollution liability coverages. Such policies leave your agriculture clients to fend for themselves and attempt to adhere to the complex environmental regulations and requirements set forth by the government. So, in addition to obtaining farm insurance, why is environmental protection important for agricultural clients?
Environmental insurance fills the coverage gaps and supplements agriculture coverage by providing your clients with the proper protection. Many Farm policies will limit or exclude pollution coverage to losses at your client’s owned farm locations and only provide 3rd party off-site protection limited only to a sudden and abrupt release or escape of governmentally approved “agricultural chemicals, liquids or gases” which take place within a period no greater than seventy-two (72) hours. A standalone environmental policy from Great American can offer both on and off-site clean-up coverage on a gradual basis (not limited to sudden and abrupt releases) and transportation coverage (including mobile equipment) and includes a broader definition of pollutants which encompasses more than the limited “agricultural chemicals, liquids or gases” covered by a farm policy.
Which of Great American Environmental insurance coverages is most appropriate for agricultural operations?
Great American Environmental offers Premises Environmental Liability (PRE) protection that is uniquely designed to fill coverage gaps in policies that exclude pollution associated with typical agricultural operations. The experts at Great American Environmental take your clients’ portfolios to the next level by offering specialized coverage that can protect against complicated and often costly agricultural pollution risks.
Where do pollution conditions arise on agricultural operations?
For additional examples of real life situations that could easily affect your clients, visit our Claims Scenario Library and explore our Agriculture Riskopolis!
Ready to learn more? Download the full FAQ agriculture handout to discover how environmental insurance can help protect against the liabilities that may arise!
Check out the latest featured claims scenarios in the Environmental Insider.
Erin Mitton
Production Underwriting Specialist
Life is full of uncertainties. While not all types of loss are preventable, many can be mitigated through proactive action. We are proud to collaborate with Great American’s Loss Control Services to promote its new prevention platform – Safety Hub. Check out their farm loss and fire prevention resources for tips to share with your clients!
Environmental Insurance Products
Check out our revamped Product Summary Guide!