In Florida’s dynamic agricultural landscape, risk is part of the job. From unpredictable weather to equipment breakdowns and labor challenges, agribusinesses face a wide range of exposures. But while many operations carry basic insurance, coverage gaps can leave you vulnerable to devastating losses.
Here are five common insurance gaps that could impact your farm, ranch, or food production business—and how to close them before it’s too late.
1. Inadequate Equipment Coverage
The risk: Tractors, harvesters, irrigation systems, and processing machinery are essential—and expensive. Many policies don’t fully cover mobile or specialized equipment, especially when it’s used off-site or leased.
The fix: Ensure your policy includes scheduled equipment coverage and equipment breakdown insurance. Review limits annually to reflect current asset values.
2. Gaps in Business Interruption Coverage
The risk: A hurricane, fire, or supply chain disruption could halt operations for weeks. Without proper business interruption insurance, you could lose revenue while still covering payroll, loans, and overhead.
The fix: Add business income and extra expense coverage tailored to your operation’s downtime risks. For food processors, consider contingent business interruption for supplier-related losses.
3. Lack of Pollution or Environmental Liability
The risk: Fertilizer runoff, chemical spills, or fuel leaks can trigger costly cleanup and legal action. Standard general liability policies often exclude pollution-related claims.
The fix: Consider environmental liability insurance to cover cleanup costs, third-party claims, and regulatory fines. This is especially critical for operations near water sources or residential areas.
4. Incomplete Workers’ Compensation or Labor Coverage
The risk: Agricultural labor is physically demanding and often seasonal. If your workers’ comp policy doesn’t account for part-time, migrant, or H-2A workers, you could face compliance issues and uncovered claims.
The fix: Work with a broker who understands ag labor classifications and can ensure your policy reflects your actual workforce. Consider employer’s liability and occupational accident coverage where appropriate.
5. Product Liability & Recall Exposure
The risk: If your operation involves food production, packaging, or distribution, a contamination or labeling error could lead to lawsuits or recalls.
The fix: Add product liability and product recall coverage to protect against legal costs, lost revenue, and brand damage. This is especially important for operations selling to retailers or exporting goods.
Conclusion
Insurance isn’t just a safety net—it’s a strategic tool. By identifying and addressing these common gaps, you can protect your operation, your people, and your profits.
Want to know if your agribusiness is fully protected? Schedule a free risk review with IMCG, Inc.—Florida’s trusted P&C advisor for agriculture and food operations.