Two main Wineries Insurance Coverage: Intellectual Property and Cyber Liability
Wineries work to process wine, sell wine and grow grapes but it takes a whole team to do this in a safe and legal way so it can be successful.
Wineries come in many varieties which involves the insurance agent to look further more than just growing grapes. Agents are involved in different activities and transactions.
Some of the problem a winery might have may not be obvious in the beginning but is it important to have in mind early insurance coverage such as Intellectual property and Cyber liability.
Agents make sure everything that is exposed is covered by insurance.
Exposure for Wineries to Consider:
Most wineries do not include intellectual property coverage in their winery policies. A problem with origins of the root stock could become a vicarious intellectual property claim. A winery that doesn't buy a licensed vine and violates a patent could trigger patent infringement coverage for vines, which is also not in a typical winery policy but should be considered.
Other coverages that should be consider are the arise from weather, vine infections, insects, fire, or flood etc... All of these could result in financial problems like the loss of income. Crops, flood, earthquakes, insects and contamination are just part of the danger that should be covered by agents in the process of covering wineries insurance.
Intellectual Property will cover winery in case if it is used by someone else for using an idea on its label or in case someone steals one of its ideas.
Tasting/Selling & More
Events, providing food, tour hours, rent out their space for other to use present a significant risks and exposures to needs to be addressed.
Winerries using the to market their wines, perform business transaction through their Web sites or store credit information online which all create a potential for cyber liability.
Market and Risk Management
Risk management is one way for wineries and agents to prevent any claims.
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Insurance agents and brokers will want to determine whether the rural dwelling on the property is a home or a ranch. It’s an important distinction, as there can be substantial differences in coverage. For example, a standard homeowners policy covers fencing, as well as the contents of ancillary buildings such as a tool shed. A ranch policy does not cover either unless they are specifically scheduled.
A farm insurance policy combines the standard coverage offered by a personal homeowners policy with commercial property and liability coverage. The benefit of a farm policy, is that it can be customize to the needs of the insured.
Making the determination:
The first question to ask is whether the property is within 1,000 feet of a fire hydrant. If the answer is no, that’s a clue that you need to ask more questions. You also need to ask the following questions if there are more than two or three acres that need coverage
Anyone riding or boarding a horse on the property must sign an equine liability release waiver. An attorney will review the waiver annually, as state laws may change.
Many people choose not to insure fencing. It is very costly and rare for a single incident to damage a massive amount of fencing. Tornados are about the only situation in which a large portion of fencing is damaged. Electronic gates, however, can cost $15,000 or more, and owners may want to insure them. Endorsements also are available for fencing if the owner desires.
Barns and Ancillary Buildings:
Barns and ancillary buildings if is not listed on the policy it does not have coverage for the building or its content. Usually Farm property contents are not covered automatically like a homeowners policy and needs to have a limit for each building.
Example: A horse stable that stores hay, and tack needs to have a limit for those items listed for the specific building or there is not coverage. Horses themselves should be listed under a livestock limit.
Establishing the replacement value of ranch buildings also can be challenging. The best method is to speak with the insured and with builders in the area. The broker should be able to help estimate replacement costs, but it’s always the ultimate responsibility of the insured to choose the limit. If the owner has an ongoing relationship with a contractor for additions and maintenance, the contractor will be familiar with the property. The regular contractor’s estimate can be the most accurate number in determining the replacement value.
If the property owners are selling produce, they need a product liability policy. Crop and hail coverage is available from specialty carriers, although it typically is expensive.
While farms and ranches might appear to have more risk, agents should not fear underwriting them. By asking the right questions and understanding the insured and his or her activities, agents can ensure their clients have the appropriate coverages.
This article is directed towards agents, we believe you should know these coverage rules so that you better understand your policies and if you need a homeowner or farm policy.
For further detail in each coverage Click here.
Pennsylvania will always be my first home and where I came to love the Agriculture Industry as a whole. My home states Dairy Industry has seen many ups and downs but because of their strength and determination found a way to continue what for most is their family heritage.
I have always known Pennsylvania as a dairy farm/producing state and I hope by the possibilities this article discusses we can keep making sure it is for future generations and their farms.
Pennsylvania the state of a large number of dairy farms near urban markets such as New York, Boston and Washington D.C. Dairy is a part of the rural fabric of Pennsylvania. The challenge for Pennsylvania Dairy is how to market itself. Pennsylvania is not seen as a state that produces Dairy throughout the country.
A dairy farmer in Pennsylvania has a variety of different channels. The state has more than 20 milk plants, not counting on-farm processing. It ranks in the top seven for cheese production, second in butter, second, in nonfat dry milk and third in ice cream production.
The different channels and possible change in marketing can affect the insurance PA farms and processors could need. Making sure the insurance coverage already provided and changing it, if need be, is what agents, agencies and insurance companies that specialize in these areas constantly do.
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