Though the term might seem unfamiliar to many seeking out farm insurance, agritourism as it is described is probably familiar to all.
These business ventures, which combine agriculture with features designed to attract the public to the farm, can be creative and fun for all involved.
They also present a unique set of risks for business owners.
As such, farm insurance agencies find that operating a safe and successful agritourism business requires a clear understanding of what businesses fall under this category and the types of protection that are required.
What Is Considered To Be Agritourism?
Agritourism is defined by farm insurance agencies and the agricultural industry as a business that combines agriculture and tourism.
Businesses that fall under this classification include pick-your-own produce farms, cut-your-own Christmas tree farms, on-farm dining establishments including ice-cream stands and the like, wine tours and tasting, rides on motorized equipment, animals, or wagons, petting zoos, living history and educational farms, and others.
Properties used for hunting, fishing, camping, or lodging also fall under this classification.
How Does Agritourism Differ From Ag Businesses?
The main difference between agritourism businesses and standard agricultural businesses is that the public is invited to the farm or property in agritourism while only employees come to the property otherwise.
With so many options in this category, agritourism is growing continuously, year after year, especially as the desire for more child-friendly, local activities keeps growing.
These types of add-ons to traditional agricultural operations can bring in much-needed additional income, too.
How Is Insurance Handled?
Insuring these unique businesses requires a farm insurance policy that is just as unique as they are.
Liability policies are the main requirement, but along with those, farm insurance agencies must add additional protections where necessary.
On-farm activities can classify agritourism enterprises as commercial businesses that must be covered under a general commercial policy.
Product liability insurance is required anywhere that products are made or produce is sold directly to the public.
General liability insurance to protect against injury and other damages is also required, as are any additional policies that protect against risks specific to the business or location.
In Summary
Overall, farm insurance policies for agritourism businesses must be written carefully by experienced farm insurance agencies that understand the uniqueness of this sector of the agricultural industry and how to assess the risk level present on any tourist-welcoming farm.
To purchase the most appropriate protection for these and other types of agricultural businesses, farm owners should seek out the expertise of a reputable farm insurance agency that will pay a visit, assess their operation, then advise them on all the types of protection their business requires.