Most farm/ranch policies either limit or exclude coverage for items used in a business.
- Items used exclusively for agritourism activities may be defined as “business personal property” and may not be covered under typical farm/ranch policies (e.g. jumping pillow, cotton candy machine, barrel train).
- If items are used in the farming operation, they may be covered if used occasionally for agritourism activities (e.g. tractor used to pull wagon rides during fall festival, but used most of the year for crop production).
- Some farm/ranch policies provide a small amount of business personal property coverage, check to ensure the limit is high enough to cover items that may be considered business personal property.
- Ask your insurance agent how your items are insured and ask questions specific to items that are not traditional to farming like a cotton candy machine. Much like liability concerns, find out if they consider your agritourism activities to be “business”.