The North American Farmers Direct Marketing Association started to offer direct marketing liability insurance two years ago, and in that time, claims totaling a half-million dollars have been filed against 13 farmers. All of the injuries resulting in claims have occurred on farms, none so far at farmers’ markets.

The majority of the injuries have happened at entertainment farms, also known as agri-tourism businesses. Here are some of the larger ones:
•A Pennsylvania farm with a corn maze was doing a booming business last summer, and had to park excess cars in a field of corn stubble. Somehow the field caught fire, and 31 cars were destroyed. Payment is estimated at $390,000.
•A customer at a Wisconsin haunted house fell. Payment is estimated at $107, 997.
•A customer at a haunted farm in Montana fell off a fake bridge when a monster chased her. Payment estimated at $7,000.
•A child fell off a hay wagon ride at a New Mexico farm, was run over and was life-flighted to the hospital. The child has recovered, and the claim has not been filed yet.

In additon, there have been smaller claims by customers who fell and broke bones, or got involved in vehicle accidents entering or leaving the farm property.

Charlie Touchette, executive director of the NAFDMA, said that the number and amount of claims is not considered extraordinarily high. But enrollment in the insurance program has gotten off to a slow start, which means that losses at this point are higher in proportion to income than the insurance company was expecting. So the association has launched a campaign to make direct-market farmers aware of the insurance program in hopes of boosting enrollment and keeping the insurance company interested in providing the coverage.

Touchette says that the program covers some farming activities, such as corn mazes and haunted houses, that most insurance companies wouldn’t touch at all. And he says it offers lower prices and better coverage than is charged by insurance companies not familiar with direct farm marketing.

The policy costs a minimum of $325 a year plus $75 to be a member of the NAFDMA. That provides liability coverage of $1 million each occurrence, $2 million annual aggregate. It includes general liability and product liability. It covers farmers on the farm and away from the farm, such as at farmers’ markets and festivals. And it will pay up to $1,000 in money lost in a hold-up, on or off the farm.

For more information on the insurance coverage, call the association at 888-884-9270.