Fish Farm Business Insurance
Getting insurance for your fish farm is essential.
It is imperative that fish farms be protected from the many perils that come with operating.
For example, a customer might allege that a batch of fish was diseased and threatens legal action unless compensated. Fortunately, there is insurance available to deal with such a situation by providing funds for a legal defense, as well as damages if your defense should fail.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Fish Farm
General liability insurance is — generally speaking — one of the most important insurance policies for fish farms.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance provides coverage for a variety of risks, it may not be sufficient to cover all the risks that your business may face. For instance, some risks may require coverage from specialized policies, such as those that offer:
- Commercial property coverage: This type of insurance protects the fish farm's buildings, equipment, and other physical assets against damage or loss due to events like fire, theft, or natural disasters. It can also cover loss of income resulting from business interruption.
- Workers' compensation insurance: If the fish farm has employees, it may be required to have workers' compensation insurance. This type of insurance provides benefits to employees who are injured or become ill while working on the farm.
- Aquaculture insurance: This type of insurance provides coverage for the risks specific to fish farming, such as disease outbreaks, natural disasters, and loss of stock due to water quality issues. It can also cover losses due to equipment failure or damage to property.
There are basically two types of insurers operating in today’s insurance market:
- Traditional brick and mortar insurers: Traditional insurers, like Allstate, may not be as data-driven in their approach to underwriting. This can lead to reduced customer satisfaction and higher premiums.
- Online insurers: Insurtechs use technology to collect data about customers and their behavior, which helps them create more accurate risk profiles. This, combined with low overhead created by operating in a digital environment, allows online insurers to offer lower premiums.
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Cost of General Liability Insurance
On average, fish farms in America spend between $300 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a fish farm to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Discover the best coverage at the lowest rate in our affordable business insurance review.
Common Situations That General Liability Insurance May Cover for a Fish Farm
Example 1: While leading an elementary school field trip to your fish farm, a teacher trips over a display in your lobby, breaks an arm in the resulting fall, and needs emergency medical care. He asks your business to pay for the treatment. General liability insurance would cover his medical bills.
Example 2: A local competitor files a lawsuit against your business, claiming your new logo infringes on his copyright. General liability insurance would pay for your legal fees to defend your business and any required settlement.
Example 3: As an employee unloads a shipment of feed in the parking lot, he loses control of the dolly and it hits a customer’s luxury car. The customer decides to sue your business for damages. General liability would cover your legal defense, the customer’s vehicle repair costs, and any other damages awarded in the lawsuit.
Other Types of Coverage Fish Farms Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While your team works hard to supply a superior product, there’s always a chance one of your customers might claim your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any awarded damages.
Commercial Property Insurance
You made a major investment to establish your fish farm. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building(s) and grounds as well as the specialized equipment and inventory you store there.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your fish farm:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Fish Farm Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Acquiring insurance prior to starting your business insurance is crucial. Failing to have coverage from the onset may not only expose your business to unforeseen hazards, but it could also lead to legal infringements.
Certain forms of insurance, such as commercial auto insurance and workers' compensation, are mandatory by law. Additionally, your business may necessitate insurance to safeguard against specific risks such as property damage and personal injury to customers.
Not necessarily. Certain exceptions may be written directly into your fish farm insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.