Farm & Life Insurance - How Much is Enough to Cost?

Transcription

1 Personal, Farm & Life Insurance: How Much is Enough? Executive Women in Agriculture December 2, 2011

2 Emily Keggan CPCU, AFIS, AINS Regional Sales Manager CT, DE, MD, NY, PA & VT

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4 Nationwide Agribusiness Who should I do business with? Understanding your Farm Insurance Policy Inviting the public on your Farm ACV vs. RCV and Co-insurance Risk Management Annual Farm Review Life Insurance

5 Welcome to Nationwide Agribusiness NWAG History #1 Ag Writer 100 th Year NW Board Members

6 Nationwide Agribusiness- Then & Now

7 What is Covered? Dwelling, Contents & Detached Garages Farm Personal Property Farm Outbuildings & Run-in sheds Liability

8 What is Covered under Liability? Bodily Injury or Property Damage Personal and Advertising Injury Medical Payments Property Damage of Others

9 Covered Causes of Loss- BASIC - Fire/lightning - Wind/hail - Explosion - Vehicles - Aircraft - Riot/civil commotion - Smoke - Collision Causing - Sink hole collapse - Damage to Farm Personal - Theft Property - Vandalism - Volcanic Action Collapse may be added to certain types of structures

10 What Basic Cause of Loss?

11 What Basic Cause of Loss?

12 What Basic Cause of Loss?

13 What Basic Cause of Loss?

14 What Basic Cause of Loss? Sinkhole 700 across & 250 deep Houston, TX May 2008

15 What Basic Cause of Loss?

16 What Basic Cause of Loss?

17 Covered Causes of Loss-BROAD Falling objects Weight of ice/snow Freezing Breakage of glass Accidental discharge or leakage of water Accidental shooting Drowning from external causes Collision causing death Earthquake loss Flood loss to livestock Sudden damage from Electrocution artificial electrical currents Attack by wild animals or Accidental tearing apart dogs (excludes sheep) Loading/Unloading accidents

18 What BROAD Cause of Loss?

19 What BROAD Cause of Loss?

20 What BROAD Cause of Loss?

21 What BROAD Cause of Loss?

22 What BROAD Cause of Loss?

23 What BROAD Cause of Loss?

24 Covered Causes of Loss- SPECIAL Includes everything unless it is excluded in the policy.

25 SPECIAL Cause of Loss

26 SPECIAL Cause of Loss

27 SPECIAL Cause of Loss

28 SPECIAL Cause of Loss

29 Types Of Farms

30 Innovative Farmers

31 Types of Agritourism covered by Nationwide Agribusiness Corn Maze Pumpkin Patch Petting Zoos Hayrides & Farm Tours Bed & Breakfast Christmas Tree Haunted Attractions Cider Presses Pick Your Own Fruit & Veggies Hunt & Trap Club Farmers & Flea Markets Roadside Stand Maple Syrup Corn Crib Classroom Outfitters & Guides Climbing Walls

32 Points to Ponder Agritourism & Direct Marketing

33 Three Classes of Visitors 1.Trespasser refrain from willing or wanton injury 2. Licensee - enters with owners consent but without financial benefit to farm owner. 3. Invitee - enter property for benefit of property owner

34 Roadside Farm Stands Traffic entering and exiting stand Clearly identify hazards (use a lot of signs) Parking areas Trip and fall hazards Keep farm equipment away Child play areas!!!!! Processed foods

35 Products Liability Farm Policy Primarily covers wholesale Some Retail Sales Included Produce grown on the farm Unprocessed Some Retail Activities can be endorsed onto the Farm policy Pick Your Own Farm Stands Farmers Markets Retail may require an additional General Liability Policy

36 ACV vs. RCV

37 RCV Valuation Building Valued at $100,000 Life span of Roof 30 Years Damage to Roof $50,000 Age of Roof at time of loss 15 Years If Insured for RCV (Farmer is paid) $50,000

38 ACV Valuation Building Valued at $100,000 Life span of Roof 30 Years Damage to Roof $50,000 Age of Roof at time of loss 15 Years If Insured for ACV (Farmer is paid) $25,000

39 Co-insurance Co-insurance provision limits the amount of loss paid ITV= Insure to Value OR Its to Valuable

40 Total value of property $1 Million Coinsurance percentage needed 80% Limit of Insurance $350,000 Deductible $1000 Amount of the loss $150,000 $1,000,000 x 80% (the minimum amount farmer agreed to carry) $350,000/$800,000 = 44% $150,000 (amount of loss) x.44 = $66,000 $66,000 - $1000 (deductible) = $65,000 ITV example

41 Risk Management 101 Definition of Risk Management ARTSR Avoid Retain Transfer Share Reduce

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45 Can you find the electrical box?

46 Safety Issues LP tanks Fuel tanks

47 Fire Extinguishers Will they work when needed?

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49 Nationwide Agribusiness Choose a Farm Agent & Farm Insurance Co Understand What is Covered Evolving Farm Insurance Co Proper Building Valuation Risk Management Annual Farm Review Protect Your Life, Family & Farm

50 Q U E S T I O N S?