Its not uncommon to experience a spill on a farm. Whether its fuel, oil, chemical, or fertilizer, these substances can have an impact on the environment. In some instances, you could be liable for the damage, and the cost to restore the area of the spill could be yours to bear! Whether you are travelling down the road with a full tank of liquid fertilizer, a slip tank full of fuel, or refilling your oil tank for your furnace at home, you need to be aware of the impact you are having on the environment should a spill occur.
As farms are being sold and operations are growing larger, the odds of experiencing either a spill or having an environmental assessment done on a property that is being sold are increasing. Regulations are tightening and the public sector is watching agricultural practices closer than ever. Should you suffer a spill, what would you do?
Fortunately, there is insurance that you can buy to protect you from the liability associated with these risks. Should you accidentally spill a damaging substance during transport into a neighboring property or onto crown land, you can rest assured that the damages will be covered. Further, losses as a result of a crop over-spray can also be insured.
Typically this coverage is sold with a basic limit of $100,000 worth of coverage, but some companies have recently increased this limit to $250,000. It is important that you carry the right amount of pollution liability that is in line with the size of risk that you pose to the environment. If you haul around a 100 gallon slip tank, chances are good that the $100,000 limit will be sufficient. However, if you are hauling around 4,000 gallons of liquid fertilizer in your seeding unit, and there is a spill, the cost to contain the spill and clean up the mess could be substantially higher.
One of the most critical components to this coverage is the necessity to immediately report any pollution losses to your insurance company. Most times companies have a 120 hour period where you can claim the loss and have them respond. If you wait longer than this time frame, your claim could be denied.
If you are concerned about pollution claims, or if you want more information about these types of losses, please don’t hesitate to get in touch with your insurance professional to discuss the options to have this insured.