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Environmental Insurance for Agriculture
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Endorsed by the National Association of Wheat Growers (NAWG)
Although farming and agriculture operations do not appear to pose a significant environmental risk,
in reality there are inherent exposures that are typically not addressed by standard insurance
programs. The reason: most farms have a coverage gap in their property and liability insurance
coverage created by the absolute pollution exclusion. Due to this exclusion, the standard property
and liability insurance policies do not cover claims associated with pollution incidents. These are
some of the environmental exposures associated with farm operations:
- Fertilizer and pesticide application may generate cleanup costs, property damage, and
bodily injury claims from off-site receptors such as other farms, residences, or commercial
facilities. Generally the exposure pathway is surface water or runoff caused by a rain event.
- Aboveground and underground storage tanks may be the source of a sudden/accidental or
nonsudden/gradual release of fuel or chemicals into the soil and groundwater. Cleanup costs,
property damage, and bodily injury due to tank exposures are not covered by standard commercial
policies.
- On-site landfills and boneyards may cause pollution conditions both on-site and off-site.
Many farms have areas where historic dumping may have occurred of which the current owner may not
be aware. Unfortunately, not knowing does not excuse the site owner from financial responsibility.
- Farms with livestock operations have waste lagoons and waste water generated from the
livestock. Livestock waste may have an impact to off-site receptors due to lagoon liner breeches
or storm events.
The solution to this coverage dilemma is Pollution Legal Liability (PLL) Insurance. PLL insurance is
designed to fill the coverage gap left by the absolute pollution exclusion. Intercorp’s specialized
environmental program for growers and farmers, endorsed by the National Association of Wheat Growers,
includes many coverage extensions at no additional cost to the insured. The program is not limited to
members of NAWG. The National Association of Wheat Growers endorsed PLL program features:
- On-Site Cleanup Coverage for Pollution Conditions.
- Off-Site Cleanup Coverage for Pollution Conditions.
- Third Party Liability for Bodily Injury and Property Damage for Pollution Conditions for
On-Site Exposures.
- Third Party Liability for Bodily Injury and Property Damage for Pollution Conditions for
Off-Site Exposures.
- Legal Defense Costs.
- Pollution Conditions Resulting from Transportation of Products and Wastes (option).
- Cleanup and Third Party Bodily Injury and Property Damage for Pollution Conditions Resulting
from Non-Owned Disposal Sites (Superfund Liability) (option)
- Underground Storage Tank Coverage (option).
 Click here
for an application for coverage, or contact us if you would like
additional information.
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