Buyers such as chefs, food service directors, retailers, etc. can vary in their exact requirements for insurance coverage. Potential farm vendors should communicate with prospective buyers about their policy in terms of insurance coverage. Carrying product liability insurance is a reality for producers marketing to restaurants, retailers, and larger food service institutions. The investment you make in insurance helps protect both your farm's assets and the customers that are buying your product. The amount of coverage expected can range from one million to three million dollars in umbrella coverage, but don't let these numbers scare you. Have a conversation with your insurance agent to see what coverage works best for you and your buyer(s).
Check out our MarketReady Insurance Checklist. This checklist is intended as a reference point for self-examination of your business practices to evaluate readiness for commercial markets and as a checklist for communicating on expectations held by specific buyers.
Here, we have developed the most common questions and answers regarding Product Liability Insurance. Check out the write up here: Product Liability Insurance Importance & FAQ
To learn more about product liability insurance, check out this article from our friends at Penn State Extension.
This article from our friends at University of Missouri Extension covers farm liability insurance.
Take a look at multiple insurance coverage options for fresh produce growers in this publication from NC State Extension. This publication discusses general farm and product liability, recall insurance, and product contamination.
Check out these videos on insurance (crop insurance specifically) from our friends at the Kentucky Horticulture Council.
Discuss insurance requirements with buyers. Having an open conversation with your buyers about insurance requirements will prevent confusion and ensure that both parties are satisfying each other's requirements.
Communicate with your insurance provider regarding any changes you wish to make to your policy. Always ask for written conformation about important details regarding your policy.
Abide by the rules of the Food Safety Modernization Act (FSMA) whether you are required to or not. If you are unsure if FSMA applies to your operation, check out this Standards for Produce Safety flowchart. Find our more about FSMA in our Insurance FAQ write-up.
Be aware of the regulations around fresh items that are consumed raw or cooked, as well as value-added items. More information about fresh vs. value-added insurance coverage can be found in the Insurance FAQ write-up.
* Disclaimer: we are not an insurance agency. We are here to guide producers in the world of insurance, but we are not the end-all, be-all. For the most current, up to date regulation and coverage information please speak with your local insurance agent.