4 Reasons Why Agricultural Consultants Need Business Insurance

Question: What do you do if you love all things farming and business? Answer: Become an agricultural consultant. In this role, you’ll be able to help farming and farming-related institutions with your expert analysis and keen eye. After all, farmers themselves don’t always have the time to crunch complex numbers.

You’ll need a few things to make this career dream a reality, including a four-year degree and/or a Master’s Degree in a related specialty like animal science, economics, finance or agronomy. You’ll also need agricultural business insurance to protect your financial outlook. Here are four reasons why.

You cause property damage on a walk-through

Your job will entail bouncing back and forth between your office and your client’s land. With so many moving parts (watch out for that tractor!) you have to be diligent and follow all necessary safety standards. But nonetheless, there are a lot of ways for accidents to happen. Tripping on a loose rock can send you careening, arms outstretched, into the delicate greenhouse wall. If it shatters, you’re on the hook for the bill—likewise with client-owned vehicles, structures, animals, fences and crops.

Luckily, commercial general liability insurance (CGL) covers costs associated with any bodily injury or property damage that you inflict on others while working.

A farmer blames your advice for a bad crop

An accident is one thing. But what if you cause your client to sustain a financial loss based on your professional advice or services? That’s a different story, and you need a different type of insurance to cover it. In this case, let’s say you recommended the client plant a certain crop in a certain area and treat the soil accordingly. It’s all going well—until a summer of continuous rainfall washes away everyone’s high hopes. It’s not a bumper crop… it’s a bummer crop.

Professional liability insurance, known as errors and omissions, protects your consulting business financially in case a client alleges that you’re responsible for their financial loss through:

-Negligence

-Misrepresentation

-Violation of good faith and fair dealing

-Inaccurate advice

-Violation of your contract

You depend on electronic correspondence and file storage

The tools you use to manage your clients continually get more advanced. According to a brochure from the American Society of Farm Managers and Rural Appraisers, “It is common for a consultant to be responsible for 20-50 or more operations at one time.” That’s a lot of emails, tax forms and contracts for one person to handle, to say the least. You may make use of a cloud storage system combined with apps and email.

While this is great for convenience and organization, it may open your consulting business up to the possibility of a cyber-attack. Unfortunately, hackers can and do exploit individuals and SMBs with phishing scams, malware, ransomware and more. Cyber insurance is a solid backup plan against the financial losses that result from data breaches.

Your work truck collides with a deer in the country

Country life… it’s unpredictable to say the least. You’re on your way to visit a client when a buck jumps out in front of your truck. You do your best to slam on the brakes and swerve, but, unfortunately, it’s a head-on collision. Your windshield is toast, your front fender is crumpled and you’re stranded on the side of the road. A commercial auto insurance policy with comprehensive coverage generally covers colliding with wild animals, so at least you’re not alone in paying for the damages.

Ready to enroll in agricultural business insurance? Discover the best deals and policy options with CoverHound today!