I promised to answer a question regarding wind drift and overspray of agricultural chemicals from other farms. I contacted the folks out in Napa who run one of the programs we offer and I also checked on the federal crop insurance website. The crop program does offer a product that will cover any variation in yields from one year to the next. As I mentioned on Tuesday, we are not yet certified to offer crop coverage so I would recommend contacting the agent you work with for crop coverage regarding this exposure. Standard property insurance polices would treat this as a pollution event that would be excluded from coverage.
Obviously, if you are able to determine the source of the chemicals, you could potentially file a claim against whoever is responsible. You may be able to seek coverage from the "at fault" farm if they have coverage for Wind Drift and Overspray. Attached is a sample endorsement for this coverage that we offer for wineries. Similar endorsements are typically available for other farm operations. If they do not have this coverage extension then the only option may be to file suit and fire up the lawyers. This endorsement modifies the Pollution Exclusion to extend third-party coverage for overspray and wind drift damage to crops.
As an aside, they also recommended that if this is an ongoing concern and exposure you may want open up some dialogue with farms in your area, possibly through the farm bureau, to educate and make the other farmowners aware that certain chemicals they use may be detrimental to vineyards.
Please let me know if you have any questions about any of these issues.
E.Stephen Burnett, CIC, ARMExecutive Vice President
No comments:
Post a Comment