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We are ready to help explain Part 3 of the Pollution Coverage. But before we go there, make sure you have read Parts 1 and 2. Did you miss those? Well just click here for Part 1 or here for Part 2. That way everyone is caught up and ready for Part 3! Just a quick review. There are three parts of farm pollution liability that you should be concerned with: Part 1 - Chemical Application, Storage, Non-Auto Transportation Part 2 – Limited Farm Pollution Liability Coverage Part 3 – Farm Environmental Damage Clean-up Cost Coverage We have covered 1 and 2. So this post will focus on Part 3 – Farm Environmental Damage Clean-up Cost Coverage. This is the part of the farm pollution coverage that will provide a limited exception to pollution exclusion that applies to the Farm Liability Coverage Form. What does that mean and what will it actually cover? This part will help cover clean-up cost for environmental damage that occurs off the insured location. The environmental damage must be caused by a sudden and abrupt discharge, release or escape of “agricultural chemicals, liquids, gases or waste” in an “incident”. There is also an optional waste coverage we can add if you would need it. 

The On Farm Pollution Clean-up Coverage comes in from the base Farm Property form, NOT Part 3 of your pollution coverage. This will provide an additional coverage for Pollutant Cleanup and Removal, resulting from a Broad cause of loss - at no extra cost. This will pay expenses to extract pollutants from land, water, buildings, structures or personal property on the insured location. This coverage is provided up to $25,000. Know that restrictions can apply to this. Also it is important to know that Part 3 is NOT coverage for your farm auto policy. The base Farm Auto Policy excludes pollution, with the exception of escape for fuels and lubricants used in the normal function of an auto. Broadened pollution coverage may be added for an additional charge on your farm auto. So if you don’t currently have this extra endorsement, make sure you get it added. Now that we have gone over all three parts of the Farm Pollution Liability you should also know that once you decide what of those 3 parts you need, you also need to have a general aggregate limit. You need to select this aggregate limit based on total of Parts 1, 2, and 3.  Aggregate limits offered are  $100,000, $300,000, $500,000, $1 Million and $2 Million.

Once you select this, you have finished with your Farm Pollution Liability Coverages. All of the pieces and parts have been broken down for you. Do they all make sense? Do you still have questions regarding a certain part and if you need it or not? Let us know how we can help you understand this even more. That is what we are here for!