General Liability Carriers

[Herkster]

Hey everyone

I'm struggling to place a large custom crop spraying operation. I've only been able to obtain one quote, which was through Scottsdale, and am looking to find other markets. I'm curious if someone here can point me in the right direction?

Oh, and when I'm talking large, something like 35,000 acres and $300k in gross receipts. The quote I got back was $32k, which doesn't seem terribly out of line, but a bit high. Using classification 91606

Thanks!

 

[DivineFoodie]

Crop Insurance Of America
Also, I'd go to MyNewMarkets.com - Insurance Markets Directory and Search Engine, type in a search for crop insurance and see what companies come up.

 

[Herkster]

Crop Insurance Of America
Also, I'd go to MyNewMarkets.com - Insurance Markets Directory and Search Engine, type in a search for crop insurance and see what companies come up.

Not a whole lot came up when I did the search. I've reached out to a couple other people as well to see if they can point me in another direction. Right now, we have it quoted through Scottsdale as Allied didn't want it because it wasn't incidental to their farming operation, which is understandable.

 

[DivineFoodie]

Sorry there wasn't more on the mynewmarkets website. I don't know anything about crop insurance. Hopefully your other contacts will have additional information.

 

[Herkster]

Sorry there wasn't more on the mynewmarkets website. I don't know anything about crop insurance. Hopefully your other contacts will have additional information.

This isn't for actual "crop" insurance, which is a federal program. I'm looking for a general liability carrier that will take on a large crop spraying risk. My quote came back at 32k based off of 300k in gross receipts. Not terrible, but higher than I expected.

 

[DivineFoodie]

Gotcha! Hopefully you can find something a bit less expensive from another insurance carrier.

 

[cottonland]

Where is it located?

 

[reedrhoden]

If you're still trying to place this risk I can help. I'm a broker with a national wholesaler.

Sent from my iPhone using InsForums

 

[billlacombe]

Where are you located? There are plenty of small business insurance carriers out there, try a few by getting some online quotes and seeing how they compare. I bet you can find cheaper. If you are interested, you can get a quick, business quotes here: workcompforless(dot)com but only if you are on the West Coast. Hope you find something though!

 

[Herkster]

Where are you located? There are plenty of small business insurance carriers out there, try a few by getting some online quotes and seeing how they compare. I bet you can find cheaper. If you are interested, you can get a quick, business quotes here: workcompforless(dot)com but only if you are on the West Coast. Hope you find something though!

There isn't any small business insurance carrier that is going to take on this risk. This is a custom crop spraying and side-dressing operation with several chemicals that leaves the prospect with the chance to kill anywhere from $100,000 to a couple million dollars in crops for the person they are spraying for.

If he was to spray 35k acres of corn, and all somehow ended up incorrect, the loss would look something like this..

35,000 acres x 180 bu per acre x $4.62 (bu per acre price off 2014 spring multi-peril insurance)
Comes up to something like 29 million dollars of claim payment if they were to burn every acre they spray. Very good likelyhood that this would never, ever happen, let alone burning down a quarter section. But that's the kind of liability risk involved in such an operation.
The only company I could find to quote it was Allied General, which was high to say the least. None of my standard or preferred companies or even my brokers could find a place to put this.

Now, if he farmed 1000 acres himself, had 100 head of cattle, I could probably get it written with Nationwide Ag because the custom spraying is then a sideline of his primary income (farm), but as of now, he works off the farm and does the spraying seasonally when required.

I appreciate the thought though!