Insurance for Farmers Market is a program that provides financial assistance to farmers who sell their products at farmers markets. The USDA Rural Development State and County Offices administer the program in each state, with local offices providing technical support. Eligible producers must be enrolled as individual producers or part of a cooperative marketing association. In addition to insurance coverage, eligible producers receive other benefits such as training on how to run a successful business through CMA programs, access to loans from participating lenders, and information about financing options available to them.
Farmers Insurance Program
The Farm Service Agency administers this federal crop insurance program which covers most crops grown by U.S. farms. It also offers disaster relief payments after natural disasters like hurricanes, tornadoes, floods, droughts, etc., affecting farm operations. This program was created during World War II when it became clear that food production would need to increase dramatically if America won the war. Today, the FSA has over $20 billion worth of policies covering more than 80 percent of all farmland in the United States.
USDA Risk Management Agency
The RMA’s mission is “to provide risk management services to help ensure the safety and security of our nation’s agriculture.” They are responsible for administering several different types of agricultural insurance including:
Agricultural Credit Act –
Provides credit guarantees against losses due to weather-related events, livestock diseases, insects, plant pests, and certain other causes. These credits can be used to purchase insurance protection against these risks.
Rural Housing Loan Guarantee Program –
Provides loan guaranties up to 90% of the value of new housing construction financed under Title I of the National Housing Act.
National Agricultural Statistics Service
This agency collects data related to farming activities throughout the country. Their website includes statistics on many aspects of American agriculture, including:
Production & Supply
Farms & Land Ownership
Crop Production Costs
Food Consumption and many more
Should Farmers Market Vendors Carry Product Liability Insurance?
If you have been asked whether your vendors should carry product liability insurance, you probably already know the answer. If not, here is what you need to know.
Product Liability Insurance protects businesses from lawsuits resulting from injuries caused by defective products they manufacture, distribute, or service. A lawsuit could result from many things but usually involves someone being injured because of something wrong with the product itself. For example, a customer may slip on spilled milk while shopping at a grocery store. Or, a child might get hurt playing basketball because there wasn’t enough netting around the court.
Product liability claims can cost thousands of dollars to defend, so having adequate insurance is important. You don’t want to lose your amount just because someone got hurt using one of your products! Without proper insurance, you will likely end up paying out of pocket for legal fees and settlements.
Can I save money on farmers market insurance by simply hosting a safe, low-risk farmers market?
Yes, you can save money by choosing to host a safe, low-cost farmers market. However, you must understand how much coverage you need before deciding to go without insurance. The perfect way to do this is to contact an agent who specializes in insuring farmers markets. An experienced agent can tell you exactly what type of policy you need based on the size of your operation, the amount of time you spend selling produce each week, and where you sell.
How Much Does Farmers Market Insurance Cost?
Depends on which company you choose to insure your business through. Some companies offer discounts if you buy multiple policies; others charge higher rates when you add additional insured parties such as employees or contractors. It also depends on the level of coverage that you require. Most agents recommend purchasing comprehensive general liability insurance, covering most potential liabilities associated with running a small farm stand.
What if my market can’t afford farmers market insurance?
You are allowed to operate a farmers market even if it doesn’t have insurance. In fact, state regulations often will enable you to run a farmers market regardless of whether you have insurance. But, be aware that operating without insurance puts you at risk of losing all of your assets if you’re sued. This means that you’ll either have to pay out of pocket for damages or close down until you’ve recovered financially.
Farmers Markets – What’s Next?
Now that you know more about why you need farmer market insurance, you can start looking into different types of policies available today. Visit www.insuranks.com/farmers-market-insurance today to know more about our services and find out how we can help you against unexpected risks.