Farmers are not immune to pollution claims, and these claims—such as discharges from manure pits and fuel leaks from storage tanks—are not covered by your typical farmowners policy. Pollution liability insurance provides farmers with protection against lawsuits for bodily injury and property damage that result from pollution conditions. In the event of a pollution condition, the insurance company will provide a legal defense and pay the cleanup costs and monetary damages for bodily injury and property damage.

Here are some real world examples of recent pollution claims against farmers:

• A leak from a dairy farm's manure holding tank released nitrates into the local groundwater aquifer which was used as the source of drinking water for the community. The cost to investigate and remediate the groundwater is estimated at $1.5 million dollars.
• A leak of diesel fuel from an underground storage tank at a farm contaminated the wells of nearby residents. The costs of providing bottle water and filtration systems to the residents and remediating contaminated soil at the site totaled more than $650,000. The insurance company is working with a consulting firm to build a pipeline to the residents to supply them with water from the municipal grid.
• A crop farmer applied carbamate pesticide using a truck-mounted boom. High winds caused the pesticide to settle on a neighboring farm’s crop of organic vegetables. The ensuing claim for more than $200,000 was based on the difference in price for selling an organic crop as opposed to a treated crop and the loss of use of the land contaminated with pesticides as an organic field for three years.

A Pollution Legal Liability or Contractors Pollution Liability policy will protect a farm's assets against lawsuits that arise from pollution conditions that are not covered under typical farmowners policies. Here are examples of the agricultural risks for which we have placed coverage:

• Manure Haulers and Crop Sprayers.
• Hog, Poultry and Dairy Farms.
• Citrus Groves.
• Fertilizer Distributors.

Contact Intercorp to discuss coverage needs and get an application.