Specialty Insurance Built for the
Professional Seedsman
Liability Protection for the Professional Seedsman
What are the Key Features of this Insurance Program?
In recognition of the need for a global approach to risk management, Specialist Lloyd’s of London Insurance Brokers and Certain Underwriters at Lloyd’s have developed a tailored Professional Liability insurance product for those involved in the seed industry. Whilst insurance is not the whole answer it is ever more important in our increasingly litigious world.
The Seedsmen’s Errors and Omissions policy wording covers Claims Made during the policy period, excluding claims/circumstances which are known about at the inception of the policy. Underwriters define “Seed(s)” as including “seeds, bulbs, plants roots, tubers or other similar means of plant propagation.”
The program covers World-Wide Sales of all crops including Genetically Modified Organisms and is specifically tailored for United States Seedsmen; Underwriters can extend the scope of your cover for organizations that conduct, Crop Consulting, Seed Treating, Soil and Seed Sampling or perform dedicated Laboratory Testing.
It is intended that Premiums are kept to a minimum, but most important of all is that Underwriters approach is flexible. Underwriters are fully aware that each risk should be considered on its own merits, whilst aiming to provide the most attractive terms to benefit the industry as a whole.
To protect your balance sheet, your policy limits and deductible include defence costs and legal expenses. Underwriters set your deductible based on your organisation’s turnover and claims history to create the most effective risk transfer solution. Our experienced brokers work closely with you and Lloyd’s of London Underwriters, taking a flexible approach when tailoring your policy. Together we assess your operations individually to provide a tailored policy that support your activities.
In the event of a claim the Lloyd’s process is designed to work for individuals, and businesses of all sizes. Which means, whomever you are, and whatever the nature of your claim, you can be confident we shall deal with it in the most suitable way. When you secure your policy with Lloyd’s of London, you can be certain you are in safe hands. Lloyd’s has built its global reputation by upholding its promise to pay all valid claims for more than three centuries. This is what sets Lloyd’s apart, and it is done by providing unparalleled security, global strength, exceptional service and world-class expertise for customers globally.
What Sort of Claims do Seedsmen Attract?
Disease Control Problems
Susceptibility to disease varies on the susceptibility or genetic resistance of the type of seed planted. Seedlings or plants may become infected with disease due to seed borne organisms, or be infected by disease organisms in the soil or from plant residue. Damage can be reduced by disease control treatments and by not planting in areas known to be infected with disease.
Overzealous Distribution
Including verbal warranties as a result of a salesman over-representing the seed product, and catalogue warranties, again by overzealous parties perhaps beyond the control of the seed producer. The International Seed Federation recommends the use of a Standard Disclaimer of Warranty and Limitation of Liability, which is a protection against some of these claims.
Germination Deficiencies
This type of loss can be controlled by careful grow-out testing and strenuous policing by official state and federal seed testing laboratories. Although claims may be less frequent, they tend to be particularly severe when they do occur.
Misapplication
Claims resulting from seed failing to perform in a given area.
Mechanical Error
Such as errors in labelling, mixture of the wrong kinds or varieties of seed, inadequate labelling or inadequate laboratory testing for germination.
Miscellaneous Problems
Improper and inadequate pollination can produce substandard seed and consequential losses. Claims also arise from failure to carefully rogue undesired types, kinds or varieties from the seed field and, in particular, apparent carelessness in harvesting the seed producing fields.
Is Products Liability And/Or Miscellaneous E&O Insurance Adequate?
No! Products Liability and Miscellaneous E&O are not substitutes.
Seedsmen’s Professional Liability Insurance should be carried in addition to Products Liability Insurance as they are entirely different coverages which complement each other.
Seedsmen’s Professional Liability Insurance covers claims against the Seedsmen which may result from failure of the seed sold to conform to the variety or other specified qualities, or to be suitable for the purpose specified, resulting from any error, negligent act or omission by the company or its employees. Miscellaneous E&O covers the professional services of the Seedsmen performed for others for a fee however, the Seedsmen may enhance the seed prior to sale without having charged a fee. This insurance program is designed to cover these additional activities which would not normally be covered by a standard Miscellaneous E&O policy or Products Liability policy.
Products Liability covers Bodily Injury and Property Damage, both of which are excluded by the Seedsmen’s Professional Liability Insurance. Sometimes a Products Liability Policy is endorsed to cover misdelivery, but, that is not an adequate substitute for Seedsmen’s Professional Liability Insurance.
Errors & Omissions Cover designed for
Those Seedsmen Involved With:
Selling Seeds
Producing seeds and selling the seeds under your own label. This can include seeds grown under contract.
Distributing Seeds
Selling seeds produced by others and sold under the labels of the seed producer, in unopened packages.
Treating Seeds
Treating, conditioning or processing seeds for others for a fee, where no actual sales take place.
Do I need Seedsmen’s Errors and Omissions Insurance?
Everyone who is involved in growing, conditioning, or distributing seeds. At any stage of the seed business mistakes (or alleged mistakes) can occur in the selection, conditioning, packaging or testing of the seed which can cause or contribute to the loss in whole, or in part, of the customer’s crop.
Even the most professional of organisations may suffer from a lapse in standards by a distracted employee, which can seriously impact a company’s balance sheet if there is no adequate insurance.
Contact Us
Contact our team of specialized experts today to learn more about how we can secure your enterprise through our deep industry knowledge and collaborative risk strategies.