PLANING AHEAD
BY : LAURA PHILLIPS
As a farmer , you have many responsibilities and potential risks to manage . One often overlooked risk is the possibility of environmental contamination caused by farming operations . This can lead to costly cleanup expenses and property damage claims . To protect your farm from such events , it ’ s crucial to consider first-party pollution liability coverage .
What Is First-Party Pollution Coverage ?
First-party pollution coverage is an insurance coverage designed to protect you against expenses related to pollution cleanup and remediation efforts on your property .
WHY DO YOU NEED THIS COVERAGE ?
As a farmer , you face potential risks that could lead to environmental contamination such as :
• Chemical and Pesticide Usage : The use of pesticides , herbicides , and other chemicals is necessary for modern farming . However , these substances can also contaminate soil and groundwater , causing harm to the environment and potentially exposing you .
• Overturning of Farm Implements : If a tractor , spreader , or tanker containing fertilizer or manure had an overturning incident and fertilizer or manure was spilled , it could contaminate your soil .
• Fuel and Oil Spills : Accidental spills of fuel , oil , or other hazardous materials used in farm machinery can contaminate your property .
WHAT COULD A CLAIM LOOK LIKE ?
• Say you run a diversified farm with crops and livestock . You maintain your farm responsibly , but you experience an environmental contamination incident .
• While applying pesticides , an employee spills a large amount , contaminating your soil .
• You hire an environmental consultant who recommends soil removal and waste disposal .
• You face significant expenses for the consultant , soil removal , waste disposal , and remediation .
• Your first-party pollution liability coverage — part of your farm insurance — covers these costs .
This example shows the importance of first-party pollution coverage for farmers . Accidents can still occur despite precautions . This coverage can protect you from adverse financial consequences , allowing you to focus on farm operations and long-term success .
It ’ s essential to be aware of potential risks that could impact your livelihood . By securing first-party pollution coverage , you ’ re protecting your farm from the unexpected expenses associated with environmental contamination . Contact your Miller Insurance Broker today to discuss how this coverage can benefit your farming operation . +
First-party pollution coverage is essential for farmers , covering unexpected cleanup and remediation costs from environmental contamination — keeping your farm protected and financially secure .
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