Seed growers can now buy liability insurance specifically tailored to meet their business needs.
The new program is being offered by CFI Insurance Group of Edmonton in response to numerous requests from seed growers and their organizations.
It provides stand-alone coverage for things like accidental mixing of seed varieties, failed germination, damage to others’ seed during processing and other seed-related claims.
“It sounds like just what we’ve been asking for,” said John Huvenaars, president of the Alberta branch of the Canadian Seed Growers Association.
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“There have been concerns that we’re losing the ability to get that kind of insurance and if there’s somebody out there willing to offer it, that’s encouraging.”
It’s rare that seed growers would face issues that might require insurance coverage – perhaps two such cases a year among Alberta’s 800 growers, said Huvenaars. But in an increasingly litigious society, insurance is a necessity.
Some growers have in the past obtained similar coverage through an “errors and omissions” rider attached to a general farm liability policy.
However, that was difficult to obtain and premiums were high relative to coverage. Some say that reflected the insurance companies’ response to several court cases in recent years involving liability claims relating to genetically modified seed contamination.
“There’s no doubt this is a good development for the industry,” said Huvenaars.
Doug Kastelic, underwriting manager for CFI, said the company began investigating the possibility of offering a special seed growers policy last fall, after hearing from individual growers and organizations.
“There’s definitely a demand for it and we feel confident this product will help fill that void,” he said. “It’s specifically designed for some of the risks they have as seed growers.
“The next 60 to 90 days will probably be the biggest demand as people buy and sell seed,” said Kastelic.
The policy will be available across the country, with one level of coverage for all growers. Premiums costs will depend on the size of the seed business.
