As an agritourism business owner, you take on a certain level of risk when you invite visitors onto your property. While you may not have an accident on your farm or ranch, you need to consider how you will manage the risks associated with your agritourism activity.

Layers of Protection

There are seven layers of protection that can be used to manage the risk of an agritourism business.

·         Common Sense
·         Statutory Protection (The Agritourism Registration process)
·         Warning Signage
·         Waivers/Releases
·         Business Entity (such as LLC, C-Corp., etc.)
·         Contracts
·         Agritourism Liability Insurance

Purchasing Liability Insurance

It is important to discuss the various activities that you plan to host at your agritourism business with your insurance agent. This will allow your agent to create a package that will work best for you. In addition, your agent can offer advice and strategies to help minimize your risk and make your property safe for guests. In doing so, you demonstrate your commitment to the safety of your guests while educating your agent about your agritourism business.

What is liability insurance?

Traditionally, the standard farm liability policy will not cover the activities of an agritourism business. Liability insurance is a part of the general insurance system of managing risk. It is designed to offer specific protection against third party claims. In general, damage caused intentionally is not covered under liability insurance policies. When a claim is made, the insurance carrier has the right to defend the insured.

Who needs liability insurance?

Every business should have liability insurance to help protect property and assets. The Kansas Insurance Commissioner’s office notes, “Liability Insurance is valuable coverage, because it protects your business from financial loss because of injuries, deaths, or property damage caused by your products, business operations, or employees.”

Limited Liability Protection through Warning Signage

As a registered agritourism operation, you are afforded limited liability protection on your property through the posting of appropriate warning signage. This is not an insurance policy; but it is one of the layers of liability protection. The sign reads as follows:

    Under Kansas law, there is no liability for an injury or death of a participant in a registered agritourism activity conducted at this registered agritourism location if such injury or death results from the inherent risks of such agritourism activity.  Inherent risks of agritourism activities include, but shall not be limited to, the potential of you as a participant to act in a negligent manner that may contribute to your injury or death and the potential of another participant to act in a negligent manner that may contribute to your injury or death.  You are assuming the risk of participating in this registered agritourism activity.

For additional information about the warning signage, click here. Signs may be ordered from the Kansas Horse Council or manufactured by a sign company.