melloInsurance

Serving our clients, Serving our community

Lyndon Block

Farm Liability – Protect you and your farm.

Harvest is here. The most exciting & insane time – of the farming year. You’ve got sprayers spraying, swathers swathing, combines combining, truckers trucking and augers augering. #Poetic #SixGeeseALaying #StopEatingMyCrops. You’ve got so many moving machines, people going in a million directions and you’re fighting a timeline before things freeze or mother nature decides to bring a heavy rain or an early snowfall. You have to work around the clock to capitalize on the nicer weather. Unfortunately, there is no such thing as a free lunch in the farming world – which is ironic since they feed us all.

With all this commotion of people and moving equipment, plus working day and night; mistakes can be made. For example: You accidentally back the combine into your fuel truck parked behind you. You may take a corner too tight and hit a nearby power pole. You spray the wrong field. You spray during a windy day and accidentally overspray and kill your neighbours crop. There are so many things that “could” go wrong. That is why you carry Comprehensive Farm Liability. You never know what may happen, and even though you do not intend to do any damage; being sleep deprived or just zoned out, you can be negligent and cause a mistake.

Comprehensive Farm Liability is designed to protect yourself against such negligence. Most farm policies will automatically include $1 million liability on your policy (Which, of course, can be increased if required). You will likely need to declare the amount of acres your farm (Rent & Own) as this liability will extend to your entire farm operation. If you decide to do some custom work for other farmers, you may need to look into what limit your insurance carrier allows for this as that now becomes a commercial operation and may need to be reviewed. A little bit of work is usually included (as a neighbourly gesture) by most companies. However, if you plan on doing any custom work – make sure you contact us to make sure your insurance carrier is on board with the custom work, as this is a material change in operation and they need to be notified. 

If you are a landowner, but have wound down your farm operation, it is still important to carry Comprehensive Farm Liability. How the courts determine negligence is open to interpretation. So if someone trespasses on your land (even if it is marked) and are injured on your land. You may be found liable for injury or damage to that person based on the arguments in court. For example, a snowmobiler rides onto your property during the winter. They are zipping through the field and collide into an old set of heavy harrows that have been buried in the snow or an unmarked slough/dugout. The harrows and dugout were not flagged and therefore are the landowners responsibility. He may be found negligent and sued for damages.

This seems like an unfair situation affecting the farmer. However, scenarios that can be out of the farmers control, may still find their way into his responsibility. Again, this is why you carry Comprehensive Farm Liability to protect yourself against things that are out of your control. 

We would love to review this coverage with you and if you have any questions or concerns, please feel free to contact us. We are in your corner and want to serve you in any way we can. Our motto is “Serving our clients, Serving our community,” for a reason. We want to make sure you have a safe, secure and amazing harvest! Thanks for reading!

 

“Only You can prevent forest fires!”

Other than the fire burning inside you, and the one roasting your marshmallows, fire can cause a lot of damage. There are currently some serious wildfires in Alberta, BC and Ontario. Firefighters are working tirelessly trying to put these out and contain the wreckage. So, first of all, thank you to all those putting their life on the line for our safety. Your efforts are appreciated greatly! Next thing, what can we (a typical pencil pushing, hammer throwing, citizen) do to prevent these things from happening?

Well, fire prevention has been pretty fresh on many people’s minds for quite some time now. How our houses are built, the urban infrastructure, the fire departments; they are all designed on how to put out and contain fires as quickly and efficiently as possible. Even the cooking products we buy, and the stoves we cook on – all have been changed over the course of time with fire prevention in mind. That is an ‘A+’ in the “prevent fires” column in society, as a whole.

So, “what can I do about this?”

  • Be responsible – throwing your cigarette out your window, leaving a campfire unattended, or starting campfires in “no fire” zones. People do outrageous things without thinking and it can end up causing a lot of damage. Please use common sense and be responsible. If you see someone do something like this, speak up! We need people to understand that their actions can hurt others.
  • Maintain equipment & machinery – Keeping your equipment, machinery and electrical components clean and in good working order will go a long way in preventing workplace fires or fires at home. Make sure qualified people are the ones working on the equipment.
  • Good housekeeping – Clutter can be a problem in causing fire, spreading it or blocking exits if a fire occurs. Make sure you keep it to an absolute minimum.
  • Test fire alarms – Despite all the technology and fire safety equipment out there, malfunctioning equipment is still a problem in many homes and workplaces, which allows fire damage to start and spread. Please test your systems and make sure your equipment is serviced and ready.
  • Fire Insurance – This is the elephant in the room, but purchasing fire insurance will give you ‘Peace of mind’ if something terrible were to happen. Just because you follow all these tips to a ‘T’, doesn’t mean that something can’t happen. It may start somewhere else and spread. Make sure you do everything in your power to protect you, your family & your business.

The costs to repair the damages from these fires, unfortunately, is still going up. It begs the question as to how this is happening, especially if the number of claims is going down? The answer, well, it’s two things really. First, the costs to rebuild & repair have never been higher. Materials and good fair labour is getting more expensive all the time. The fires that do occur, are so large that the amount of wreckage is astounding. The damage that the Slave Lake and Fort McMurray fires amounted to is approximately $10 Billion. Yes! With a ‘B.’ That is not a small number. Live video footage of Fort McMurray fire below. 👇🏻

Fire is amazing, brilliant and mesmerizing, but it can be extremely destructive if not handled with care. Please make sure you take all precautions to prevent any uncontrolled fire and if one occurs, be prepared and have the equipment and the knowledge to stop it from spreading. This may be grabbing a nearby fire extinguisher, or grabbing a co-worker off the floor and running to the nearest fire exit. Be prepared, be safe and be smart.

 

Farm Coverages that you may have forgotten about


During the farming season, there are many things going on. When it’s spring, you are getting the harrows, drills and rest of the equipment ready to hit the fields, along with the seed and fertilizer. Then after that is in the ground you have to get the sprayer and chemical ready. Then you have a short window before the peas are yellow and you are starting the harvest.

There are so many variables to running a farm and the season is so busy and hectic that something like your insurance policy can fall through the cracks. Generally the big items are remembered: The house, Shop, Bins, Barns, Equipment, Grain, Cattle, Etc. However, we want to touch on a few items that may be forgotten.

If you have a dairy or poultry farm, a big coverage is Farm Expense & Farm Income Coverage. This coverage pays for your expenses if you have a claim that results in a devastating loss which causes your farm to be inoperable and unable to generate an income because of the claim. For example, your milking parlour burns down and you are unable to milk your cows or your cattle have been lost in the fire. You may need to transport your cows to another farm to milk your cows while you rebuild your parlour. There are many different kinds of extra expenses that can be covered under this endorsement. It is a farm version of a “business interruption” policy. You may still have mortgage payments and payroll to keep employees, but you may not be making as much income or any at all. This plan is here to protect you from such a loss.


Another forgotten coverage is Debris Removal. Many people think of the replacement cost of a shop or barn, but they forget on what it would cost to tear down, excavate and haul away damaged materials and buildings. This my be a large job if you don’t have the equipment and manpower to handle the project. Most insurance companies recommend you add a minimum of 5% of the replacement value onto the building value to include for these costs.

Equipment Breakdown (also known as Boiler & Machinery Insurance) can be purchased on your farm policy for your farm outbuildings. Equipment breakdown coverage is not Machinery breakdown coverage. This is not designed to cover your farm machinery, but rather the fixed equipment in your farm outbuildings. This would be like: Boilers, Aeration Fans, Automatic Scrapers, Milking Parlours, Automatic Ventilation Slides, Compressors, Air Conditioners, Electronic equipment, etc. This coverage would apply to any sudden and accidental electrical or mechanical failure to that equipment fixed to the buildings. This coverage is important to cover the loss of any equipment in the claim, but it also removes any loopholes typical to an insurance policy. For example, you have a sudden mechanical failure in your heat exchanger in your furnace. The furnace catches fire and the shop burns down. The shop would be normally covered on your farm policy for the value it was insured for, however, they would exclude the damage to the furnace caused by the mechanical failure. This could still end up costing $5000 or whatever it would cost to repair or replace that furnace. By having this equipment breakdown coverage, the entire claim would be paid for, and you would only have to pay one deductible.

There are many little coverages that we recommend, but you may not have seen value in them when you first purchased your policy, but may now be relevant to you. A few of these are: Loss of use coverage (Farm Machinery), Volunteer Fire Fighting Coverage, Pollutant Clean-up and Removal, Tack Equipment, Vet supplies, Milk Contamination, etc. 

Please give us a call if your operation has changed, or if you would like to review the other farm coverage operations related to your farm operation.

How can we be ready for the criminals of the 21st century?

Back in the 1800’s, if there was a crime, you walked out of the saloon and handled the matter in 10-step quick draw. “This town ain’t big enough for the two of us.” You gotta love those old westerns.

Crime itself hasn’t changed, we still have issues today. The difference is the way the criminals carry out the crime. Stealing by pick-pocketing or by stealing off the shelf is less common today as there are cameras everywhere to catch you in the act. Criminals have become more and more creative with how they think up and carry out their crime.

Some things you can do to prevent such issues from happening to you or your business is:

  • Lock everything up – Whether it’s the front doors, your tool trailer, the cash in the til, or any private documents or accounting information. All this information is valuable and can be used by criminals for identity theft issues or to steal financial information for their benefit. Locking up your belongings may be required by insurance companies to cover the theft claim. (Depends on the items that were stolen. Such as tools, jewelry, etc.)
  • Security System – Having cameras and motion detectors in your house or business can not only scare off people prior to entering, but can also set off alarms or catch them in the act to make sure they don’t do it again or prevent others from doing it again. By having a third party monitor your system, you can potentially receive a discount on your insurance premiums for taking these measures.
  • Computer Data Security – There is a ton of financial information available on our computers today with the ability to bank online or do any financial purchases online. It is important to understand your cyber security on your computers, make sure the websites you are using are secure and that you have good security and fraud protection on your credit cards.
  • Iron Bars – This is an old fashioned security measure. If you have a lot of glass in an area that gets broken into more often or you store goods that are more commonly stolen; putting steel bars in the windows can prevent criminals from breaking and entering if they cannot enter.
  • Good Lighting – Having your house and business well lit during the night, helps keep people away as well as they are less prone to break into a building in a bright light to avoid getting caught.
  • Removing Valuables – Storing valuables overnight can also create potential for break-ins. Removing them from the premises can also help avoid future issues.
  • Proper Insurance – It is always a good idea to carry insurance on your buildings and your contents / inventory. Theft and vandalism claims can end up costing a lot of money. You will want to prevent as much of the small issues as possible as you will not want to claim every situation. However, you will want insurance available if a major loss does occur.

Most of our insurance policies now include coverage for criminal issues such as theft, vandalism, riot, identity theft and cyber security. Cyber security coverage is a new to the insurance industry and may need to be added to your policy if you require this coverage for data intrusion or other potential cyber threats. As this is becoming more of an issue, we recommend you look into what exposures you or your business may have to these types of issues.

Crime will always be an issue in society. Despite our best efforts to see the good in all of our fellow men and women, we will always have problems. By taking a proactive approach you can prevent any future problems from occurring before they start. By carrying an insurance policy, you can be insured for the problems and claims that you weren’t able to predict and prevent. Contact us today for any questions or to look into how we can design a policy to meet your needs.

#AIM18 is the Agricultural Trade Show to remember!

We will be attending the exciting AG IN MOTION Expo on July 17 – 19, 2018. #AIM18 is located 15 minutes NW of Saskatoon between our two neighbouring towns of Langham & Borden. We are in the Ag Pavilion building. Come say hi! We have treats, prizes and goodies that are free! Here is an interactive map showing where the events are located.

If you have trouble getting to the event, we have pinned the location here. They also now have an app and field guide to help you navigate the expo. You can click here to get started.#AIM18 is designed for the modern farmer. Ag technology and advancements in innovation. Whether its GPS or Autonomous Equipment or Advanced biology in the crops and fertilizers or insurance and risk management solutions, there are a ton of exhibitors bringing loads of valuable information and technology.
Ag in motion 2018

Start the event off right with the complimentary Dairy Producer Brunch on Tuesday July 17th from 8:30am – 10:30am and Beef Producer Brunch on July 18th from 9:00am – 10:30am. These will be located in the Ritch Bros. Event Tent. They will also have John Gormley as a Keynote Speaker on July 18th at 2:00PM. Don’t miss it. For a full list of events, visit the schedule section on the website here.  Updates on the event and continuous information on upcoming events can be found on there facebook page @AginMotion.

We would love to see you guys attend this amazing farming experience. It is 3 days of chaos, learning and fun. Please make sure you attend and take in as much as possible.

We would love to meet with you and discuss your insurance needs and how the insurance industry is changing its products for the better for the modern farmer. Our staff is rooted in the heart of the prairies and we know Agriculture. If there is anything we can help you with when it comes to your policy, coverage, claims or technology. We want to be your broker as we serve your needs first. We are licensed in Alberta and Saskatchewan, so if you farm in those provinces, give us a call, as we will design a policy to meet your every needs to make sure you are properly covered.

We hope you enjoy this event. Make sure you drink plenty of fluids as it is supposed to be a hot couple days. See you soon!

What are the steps in filing a property claim?

There was an interesting and quirky video we watched the other day about how insurance is like the reverse lottery. It would be nice to win a real lottery and obtain millions of dollars. However, the opposite could occur and you are hit with a bolt of lightning or a tornado relocates your house or barn. These are acts of god that can happen to anyone at any time. Most recently, we were hit in our local area by a terrible hailstorm. Golf ball sized hail that damaged hundreds of homes and vehicles. A plow wind up north occured this weekend as well, which tore down tons of trees that landed on peoples cabins, vehicles and trailers. People didn’t ask for these things to happen, and there was nothing they could really do to prevent or prepare for it. Park your vehicle in the garage and hold on tight.  

Once the unfortunate event has subsided, it’s time to clean up the wreckage and file a claim. How do we do this exactly?

First, contact your insurance broker.
We will be able to take down the information of the claim, review your policy and deductibles with you, and explain what insurance information the adjuster is going to need when they phone to confirm the claim.

What information is my adjuster going to need?
The adjuster will need the following information (sometimes at a later date):

  • Date of Loss – this is important, as you are alotted a certain amount of time to start a claim. Usually 6 months to 1 year. It is always better to call in sooner, rather than later.
  • List of property that was damaged – if items were stolen or burnt up, the adjuster is going to need to know what items were lost or damaged.
  • Contact Information – Which is the best way the adjuster can reach out to you. Cell phone, Email, Text, Twitter, Pinterest, etc.
  • Policy number
  • Location of Loss – Where did the loss occur? Your home, cabin, rented dwelling…
  • Any other people who need to be notified – If there are other parties involved in the claim. Such as a neighbour, relative, etc. That might need to be contacted, this will help with tracking them down.
  • Details of the loss – The adjuster is going to ask what exactly happened at the time of the loss. Be as accurate as possible so they can make sure the coverage is available on your policy.
  • Police Authorities – If the police were involved in a theft call, or other claim situation. Please let the adjuster know the police file number.
  • Quotes from Contractors – If a building or dwelling was damaged, you may need quotes from contractors to assess how much damage actually occurred. They will be able to give you a replacement value. It is important to use reputable contractors, as these contractors may be the ones doing the work.

What happens next?
The adjuster will take down your statement and based on the type of claim, they will schedule a date to come assess the damage. If it is a claim where they do not need to be on the premises, they will review the policy wordings and the coverage you have purchased to see if the loss is something that is insured on your policy. (This is where you hope you purchased the best coverage and not the cheapest.)

…if claim requires construction
After they review the coverage, and coverage is approved, they will proceed with the claim. If construction needs to take place, they may suggest which quote to proceed with. You may have the option to fix the damage yourself, however, this will be negotiated with your adjuster when you submit the contractors quotes.

…if claim is regarding equipment or machinery
If it is a machinery claim, you may need to have a service department appraise the damage in their shop or on the scene. If coverage is available, you will be entitled to either Replacement Cost Coverage or Actual Cash Value (ACV) – based on the value, coverage and age of the unit. Actual cash value is calculated by Replacement Cost minus depreciation (as machinery will wear over time).

…if claim is regarding your personal belongings
If the claim is simply for the replacement of your belongings, the insurance company will require a list of items that were damaged or stolen. If coverage is available, they will then give you an Actual Cash Value (ACV) settlement for those damaged items. Once you purchase the new items to replace the damaged ones, you can submit the receipts for those items to be reimbursed for the replacement cost on those belongings. Generally you have 6 months from the date of loss, to replace your belongings. This time frame can be negotiated if it is impossible to replace them in that time. For example, your house burns down and construction is delayed, so you have no place to put your new appliances.

What about a vehicle or trailer claim?
SGI handles all auto claims as they are registrable units. Please contact them at 306-683-2100 or you can file an SGI eClaim. If you are simply fixing a windshield, you do not need to proceed through this claims service. Please contact our office. We always recommend carrying an auto pak policy to insure the unit while unlicensed and in storage.

Wrapping things up
Each claim situation is different, so it is hard to tell you how every situation will play out. Generally, once the claim is started, your adjuster is the main contact for your claim. If you ever run into any difficulty with the claim, please contact us; we are here for you to help you through the claims process. We want to make sure your claim is handled smoothly and professionally.