Think about how many workers are hurt on farms every year. Thousands. Many of those accidents involve heavy equipment that keeps farms operational. When that equipment injures someone it can destroy a business if it’s not properly protected.
Let’s talk liability.
Liability isn’t something to worry about after getting setup. To protect a farm operation (and keep employees safe) operators need to understand liability and cover their bases now.
In this article:
- How Equipment Selection Impacts Liability
- The True Cost of Agricultural Equipment Accidents
- Types of Liability Risks With Heavy Equipment
- Insurance and Coverage Needs
- Minimizing Liability On The Farm
How Equipment Selection Impacts Liability
Alright, let’s get into the good stuff.
The types of equipment used for an operation effects liability. Farm equipment manufacturing has improved drastically over the last decade. New equipment comes standard with safety features, ROPS, and auto-steer that minimize the chances of someone getting hurt.
Operators should look for trusted brands that have great safety records. When buying grain carts operators should look to brands they know and trust, like J&M grain equipment. Quality equipment that’s built to last is important when you consider the heavy use commercial agriculture will put a machine through. Using quality equipment isn’t just good farming, its good liability management.
The equipment used isn’t the only thing that impacts liability risk though.
Routine maintenance, comprehensive operator training, and clear safety guidelines are just as important. Equipment won’t injure someone because its bad… but inadequate maintenance and training programs combined with that bad equipment create a recipe for disaster.
The True Cost of Agricultural Equipment Accidents
Farming is dangerous.
No two ways about it. According to research recently published in the American Journal of Industrial Medicine, agricultural injuries cost $11.31 billion per year across the United States. And thats just nationwide.
Tractor overturns make up nearly half of all machinery-related incidents according to research done at the University of Illinois. Between injuries, legal fees, lost productivity, and possible settlements having heavy equipment involved in an accident is a massive liability concern for farm operations.
If someone gets hurt while operating equipment or that equipment injures someone it’s going to cost. How much will depend on insurance coverage (or lack there of).
Understanding and managing liability starts before anyone even turns a key on a tractor.
Types of Liability Risks With Heavy Equipment
Commercial agriculture operations have several different liability risks they should be aware of. Let’s take a look at some of the big ones:
Operator error is far and away the leading cause of equipment accidents. Workers that aren’t trained to properly use farm equipment should never be allowed to operate it. If a worker gets hurt because they were given the keys to a tractor without proper training the farm is liable.
Equipment failure is another leading cause of injury. If a piece of equipment isn’t properly maintained and that failure causes someone to get hurt… the operator is liable. If it can be proven that the equipment needed maintenance and those procedures weren’t performed it’ll be hard to argue against liability.
Most people think about injuries all the time but what about third-party property damage or injury?
A lot of farm equipment doesn’t spend all of its time in the field. That equipment has to be transported to and from fields to work sites. If that equipment causes an accident on public property the farm could be liable without the right coverage.
Did you know…
Environmental damage from farm equipment can also cause issues. If a fuel pump ruptures or chemicals spill while filling a sprayer the operation could be on the hook for liability costs.
Insurance and Coverage Needs
If heavy equipment is part of the operation there should be no farming without proper insurance coverage.
It happens to good operators every year. Farm equipment insurance is something every commercial agriculture operation needs but many aren’t aware of what their policy actually covers.
Minimum coverage should include:
- General liability coverage
- Equipment breakdown coverage
- Workers compensation
- Umbrella liability policies for large operations
From 2021 to 2023 the cost of new agricultural equipment increased by over 20%. With prices that high no one should risk being underinsured.
Operators should review their insurance coverage annually to ensure their equipment is properly covered at current values. Things change, farms grow, and equipment lineups expand. A policy that might have been sufficient 2 years ago may leave an operation completely exposed today.
Don’t forget that standard farm policies often only cover equipment while its not being operated in public spaces. A separate endorsement or commercial auto policy is needed.
Minimizing Liability On The Farm
Like most things in farming… managing liability starts with preventative maintenance.
Don’t worry though, it’s not just about servicing equipment. Here’s how to minimize liability on the farm:
Begin with operator training. Every single person that touches equipment should go through a training program before they are permitted to operate it. Make sure to DOCUMENT that training. Liability claims are easier to defend when there’s proof someone was trained.
Maintain equipment! Properly maintained equipment is less likely to cause an accident. Keep detailed records that show maintenance was performed at the correct intervals.
Operator safety policies aren’t a bad idea either. Write up some basic guidelines for safely operating equipment. How fast can operators travel on farm roads? Are there load capacity limits? Ensure every employee has access to these documents and understands them.
A few other things to limit liability risk:
- Perform regular safety audits of all equipment
- Install GPS tracking / telematics on farm machinery
- Physically block off areas with heavy equipment using proper signage
- Review safety policies twice a year at minimum
Don’t forget about records
Documentation can make or break an operation during a liability claim. Can the operation prove that all equipment was properly maintained? That all operators were trained? Good record keeping throughout is the best defence against liability.
Wrapping Up
Managing liability as a commercial agriculture operation is crucial but it doesn’t have to be difficult. Here’s the quick recap:
- Farming is dangerous and costs the US thousands of dollars each year due to injuries.
- Most common causes of injury are operator error and equipment failure.
- Proper training and maintenance are the first line of defence against liability.
- Using quality equipment and parts minimizes the chances of someone getting hurt.
- Have the right coverage, know what it covers, and review it annually.
Operate responsibly, understand the coverage, and keep the operation protected.
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