I have purchased my agribusiness policy, now what do you mean I may need to add some endorsements? Endorsements are additions to your policy designed to help meet with the most common coverage needs of small to medium agricultural operations. Each endorsement can contain a variety of valuable coverage additions, extensions and increase limits needed by the policyholder.
A few beneficial coverages provided by endorsements can include: additional insured liability, website injury liability, spoilage of animal health products, farm products, supplies and tools away from premises, building ordinance coverage; and coverage for fences and custom entrance gates.
One area often overlooked is equipment breakdown. You spend thousands of dollars insuring buildings and property from perils like fire and theft, windstorm and weight of ice and snow, but what happens when the air conditioning unit servicing the building breaksdown? Is the unit on the roof and going to need a crane to change it out? What about equipment suffering a power surge? Is it covered under my base property coverage in my additional commercial operation on premises? No.
Equipment breakdown (EB) coverage is important to all businesses, whether you have office, retail, agribusiness, computers and other electronic equipment that could cause financial loss from serious interruption. EB fills gaps in coverage created by several typical property exclusions and covers five main types of equipment: electrical, air conditioning and refrigeration, boiler and pressure vessels, computer and communications equipment and mechanicals. Damage due to an “accident, including mechanical breakdown, artificially generated electrical current, explosion of steam equipment, internal loss or damage to steam and water heating equipment, can include certain additional expenses. Expenses caused by, additional cost to expedite a repair or replacement or hazardous substances causing additional cost to repair covered property because of contamination. Spoilage of perishable goods is another area, due contamination from the release of refrigerants.
Another area that can be easily overlooked for any type of business is service interruption endorsement. Any insurance provided for business income, extra expenses or Spoilage is extended to apply to your loss, damage or expenses caused by the interruption of utility services. Important coverage when you consider that most business go under due to an inability to continue operations and to generate income after a loss.
Discussions with your insurance provider should be open and clear as to the type operation (s) you have and are involved with, so gaps in your coverage can be resolved. If you put the risk of operation and coverage in line, the premium cost will come into line as well.
Chet E. Caldwell and Mickey Mace are agents with American National Insurance. Caldwell is located in Fayetteville, Ark., and can be reached at 479-443-2212. Mace is located in Bentonville, Ark., and may be reached at (479) 271-6223.
