risk assessment

business

Farm owner

We understand that you’re proud of what you bring to the table. We also know that no two farm, orchard, vineyard, fishery, greenhouse or ranch owners are the same. Common risks concerning agriculturally based businesses appear below. For truly personalized business solutions, contact your local, independent Allied agent for more details. 

The National Safety Council has a special division, National Education Center for Agricultural Safety (NECAS) that has more information on this topic.

High risk

Workers' compensation

Working outside with livestock, heavy equipment or uneven fields can be dangerous. A careful worker could still get hurt. Accidents aren’t the only workers’ compensation risk, though. Repetitive stress or gradual illnesses from exposures can also produce a claim.

• Make sure everyone uses personal protective equipment like goggles, gloves, masks or sturdy footwear
• Train and supervise workers who use machinery, tractors or ATVs
• Keep bee sting, snake bite and first aid kits handy
• Be careful when working outdoors in hot, cold or stormy weather
• Put rubber mats in areas where the floor gets slippery
• Maintain all equipment according to manufacturer recommendations
• At the end of the season, when working long hours, encourage breaks so your team isn’t too tired to work safely
• If you work with livestock, show employees how to approach animals carefully
• Place waste in proper containers, especially dangerous chemicals in accordance with pollution laws in your area
• Choose a safety officer to help with safety training and to watch out for hazards

Workers’ Compensation laws are different for each state. Check the US Department of Labor for specific information about yours.

The National Safety Council has a special division, National Education Center for Agricultural Safety (NECAS) that has more information on this topic.

Product liability

Your products may put you at a risk for liability expenses if your food makes someone sick. Based on the type of growing you do, your risk in this area could be very high. Even if you specialize mainly in feed for other farmers’ livestock, you may still be exposed to liability.

• Some products have natural imperfections, some are defective and inedible;  check for molds, fungi, and rotten produce before you take it to market
• Display whether or not you use chemical fertilizers or pesticides
• If you process or prepare food before you sell it, make sure that you list all the ingredients on your packaging
• Set up a recall plan to warn customers of possibly contaminated products
• Follow sanitation requirements of food, equipment and preparation surfaces

The Food and Drug Administration and the US Department of Agriculture monitor and regulate production of edible goods.

Medium risk

Auto/fleet

If you transport equipment, fuel, products or livestock, you need to practice fleet safety. Most personal auto insurance policies don’t apply to these activities, so check your coverage.

• Mark your slow-moving vehicles if they will be on or near public roads
• If you have a detachable trailer, train your drivers for special turning, stopping, and reversing needs
• Make sure loose cargo is secured to the trailer to avoid losing items in the road
• Require all employees to wear safety belts
• Provide a cell phone in case drivers need to contact you, but be sure to remind them to pull over in a safe location before they call
• Check tires, brakes, lights, wipers and fluids regularly
• Log maintenance, repairs, and accidents

For more on driving safely, visit the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

Crime/theft

Farms are sometimes tempting for thieves. They might be able to re-sell tools or produce, and they may think your work is distracting enough that they can escape your notice. Don’t leave your assets exposed. Make your business is as unattractive as possible to criminals.

• Coordinate a farm-watch program with your neighbors, and share information
• Protect your crops with fences or gates
• Report illegal dumping
• Store vehicles, supplies, and equipment locked in a shed or garage overnight, and remove keys or batteries
• Mark equipment with ownership identification to help find stolen items
• Certain chemicals are attractive to criminals, learn about these substances, and take extra precaution with them
• Post “no trespassing” signs at your property’s edge
• Install bright lights inside and outside your buildings
• Use “red diesel” designed especially for farms, to alert authorities to fuel thieves
• Establish internal controls to deter employee theft

The National Crime Prevention Council has additional information and tips for reducing all types of crime, including theft and violence prevention for homes and for businesses.

Fire

Certain types of crops are a risk for fire when stored, transported or harvested. Plus, flammable chemicals like fuel or fertilizer used on farms can add to your individual fire risk. But keep an eye out for other possible hazards, and you’ll be ready.

• Don’t store flammable materials near mechanical equipment
• Protect metallic structures that conduct lightning or build up static electricity
• Use UL approved containers for flammable liquids
• Store hay, grain, and other combustible items in areas with specially coated explosion-proof electrical wiring
• Keep extinguishers charged and accessible
• Test smoke detectors and fire alarms at least twice a year
• Have fire drills, and train employees to watch for potential fire hazards
• Check for frayed or loose wires and connections that could spark a fire

The National Ag Safety Database (NASD) explains more about agricultural fire safety and prevention. For more information, visit the National Fire Protection Agency (NFPA) or FireSafety.gov.

Equipment failure

Modern machinery helps you work more efficiently, but you could probably get by the old-fashioned way with seeds, sunlight, and your trusty green thumb if you had to. Still, when it comes to planting season or harvest time, business might hurt if your equipment is broken. So, plan now for what you might need in a major outage, before you're caught off guard.

• Schedule checks on major equipment
• Find places you can rent equipment
• Come up with a plan for working without certain machines
• Keep warranty and purchase or lease information organized
• Buy a back-up generator for electricity outages

The energy efficiency experts at EnergyStar have information about reducing energy needs, so you can keep the business running as long as possible when the electricity goes out.

Low risk

Data loss

To track inventory, planting or breeding schedules, weather, accounting, employment or other important information, you probably use computers. If you have a website, you use them even more. So, you know that when computers have problems, business suffers. With a little planning, you can work around occasional system failures.

• Keep paper copies of electronic records and update once a month
• Backup computer files daily or weekly on a disk and store someplace else
• Install a UPS (uninterruptible power supply) to give you time to make a clean shut down during power surges or blackouts
• Create a recovery kit, including system disks, passwords, manuals, and a recent backup
• Use and update anti-virus software
• Train everyone on startup, data entry, and shutdown
• If you have questions, contact a technical support person. Most computer retailers have contact information for reliable technical assistance if you need it

Learn more about protecting yourself from internet threats by visiting the Federal Trade Commission’s Information Security website.

Professional liability

If your expertise results in injury to someone, you can be responsible for the damages. If you offer teaching or consulting to others, you run a higher risk in this area.

• Display whether or not you use pesticides and fertilizers
• For large clients, use written customer agreements to review expectations
• Assign a quality control officer to deal with customer questions or complaints
• Display professional education documents, awards, and certificates
• Leave business cards with your customers to show you’re available to answer questions

Keep yourself up to speed on industry events by staying in touch with your state Farm Bureau.

General liability

Agriculture is one of the few industries where families usually live at the job site, so preventing accidents can hit closer to home. Keep everyone safer by planning, staying alert, and knowing what you’ll do when an accident happens.

• Put waste in proper containers, especially fuels, fertilizers, and pesticides
• Practice safe traffic control when near public roads 
• Follow all city noise and pollution control regulations
• If you use ATVs, train and supervise drivers
• Never allow extra passengers on tractors
• Learn animal behavior and animal handling safety for wild animals as well as for your own
• Limit visitors in work areas unless escorted by an employee
• Choose a safety officer or team to help with safety training
• Put rubber mats in areas where the floor gets slippery
• Extension cords in public areas could trip or shock someone, so use them wisely

AgSafety Now, an organization working with state farm bureaus to distribute information, has examples and suggestions for keeping your farm safer. And, for information about pollution and safe disposal of certain types of hazardous materials, visit the Environmental Protection Agency (EPA).

For even more information, and to keep posted on the latest tips and trends, visit:

• Occupational Health and Safety Administration (OSHA)
• National Safety Council
• Institute for Business and Home Safety
• National Institute for Occupational Safety and Health
• US Department of Homeland Security 

The information contained herein is intended to assist you in making decisions that may reduce your risk of loss, but is not intended as an inclusive list of all risks. The information contained in this publication was obtained from sources believed to be reliable. Nationwide Mutual Insurance Company and its employees make no guarantee of results, and assume no liability in connection with the safety and loss control suggestions or information contained herein. Furthermore, it cannot be assumed that every acceptable safety or loss control method is contained in this publication, or that unusual circumstances may not require additional methods. The maintenance of safe premises, operations, and equipment is your legal responsibility. Nationwide cannot and does not guarantee that any of the advice is in compliance with your specific state laws.