Farmers' Malpractice Insurance: Overcoming The Challenges Of Agricultural Risks

Farmers Insurance Group offers a range of insurance products, including medical malpractice insurance. However, in 2003, the company announced its decision to discontinue selling medical malpractice insurance in 18 states, citing significant underwriting losses. This shift in strategy narrowed the market for physicians in the affected states, as Farmers Insurance was a prominent provider in this space. Aside from medical malpractice insurance, Farmers Insurance provides various other types of coverage, such as small business insurance, commercial general liability insurance, and specialty insurance for farmers' market vendors. The company has a strong presence in the personal auto and home insurance markets and is known for its competitive rates and good customer service.

Farmers Insurance Group to drop medical malpractice coverage

Farmers Insurance Group has announced its plan to stop selling medical malpractice insurance, a move that will impact physicians in the 18 states that the company serves. The decision, which is pending the approval of each state's insurance regulators, comes as the company has been facing significant underwriting losses.

The Los Angeles-based insurance company, owned by Zurich Financial Services, stopped writing new malpractice policies and will end renewals on January 1, 2004. According to spokesperson Michelle Levy, the company has been experiencing "significant underwriting losses" and plans to redirect its focus to its core lines of life, business, home, and auto insurance.

Farmers Insurance has $94.5 million worth of active malpractice policies, a significant drop from the $231 million it held in 2002. The company reported losses of over $100 million on its malpractice policies in 2002 and similar losses in 2003.

The decision to drop malpractice coverage will further "narrow an already tight market for physicians" in the areas served by the insurer, according to reports. Steve Schneider, vice president of the American Insurance Association, noted that this is a "growing and pervasive trend."

Farmers Insurance Group's decision to discontinue medical malpractice coverage highlights the challenges faced by physicians in obtaining necessary insurance coverage. The company's financial losses in this sector have prompted a shift in focus to other areas of insurance, leaving physicians in 18 states seeking alternative options for malpractice protection.

Farmers market insurance

Farmers' market insurance is a type of event insurance that covers liability claims that can occur from organizing the event. It is designed to protect farmers' market organizers from the financial consequences of claims. Covered claims may include slip and fall accidents, illnesses caused by food products, or equipment loss.

A basic farmers' market insurance policy can start at $299 per year or $25.92 per month. However, there are additional coverage options that can be added to customize the policy, such as increasing business personal property coverage amounts or adding professional liability coverage.

• Liability Insurance: This type of insurance, often called slip and fall insurance, protects the market in case a customer experiences an injury during market hours. Many property owners will require this type of insurance if the market does not own the property.
• Product Liability Insurance: This type of insurance is designed to protect vendors if a customer gets sick or injured from a product they purchased.
• Property Insurance: If the farmers' market owns the property or has any property, this type of insurance will protect them from any damages.
• Workers' Compensation Insurance: Markets that hire employees will need to have workers' compensation insurance.
• Directors and Officers Liability Insurance: This type of insurance is designed to protect the board of directors in the event of a lawsuit.

Farmers' market insurance can be purchased from private insurance agencies or through state or local farmers' market associations, which may offer policies at a special group rate. It is important for farmers' market organizers to understand the different types of insurance they may need and to shop around for the best coverage options.

Business general liability insurance

Farmers Insurance Group offers small business general liability insurance, which can help with challenging situations and the associated costs of legal defence and legal damages, up to policy limits selected for covered claims. Here are some examples of when you might need to make a claim:

• A customer trips on a fixture at your business and is injured.
• A former client files and wins a lawsuit over work performed by your company.
• You lose confidential business and customer data when your computer system is hacked.
• A disgruntled former employee brings a legal action against your company.

General liability insurance is a type of business insurance that helps protect a business financially if it harms or is accused of harming a person or their property. It is not usually required by law, but it is a good idea to have this coverage to protect your business from financial risk. Without it, you would have to pay out of pocket for any claims.

The cost of general liability insurance depends on the specific needs of your business. Factors that influence the cost include:

• Policy details, like coverage limits and deductibles
• Your business's industry
• The size of your business
• The location of your business
• The number of employees

General liability insurance policies typically include two numbers: the per-occurrence limit and the aggregate limit. The per-occurrence limit is the maximum amount the insurance company will pay out for a single claim. The aggregate limit is the total amount the insurer will pay out in a single year.

In addition to general liability insurance, Farmers Insurance Group also offers other types of business insurance, including:

• Commercial property insurance
• Workers' compensation insurance
• Commercial auto insurance
• Business umbrella insurance

Employment Practices Liability Insurance

The cost of EPLI coverage depends on several factors, including the type of business, the number of employees, and various risk factors such as prior lawsuits and employee turnover rates. EPLI policies are written on a claims-made basis, meaning that the incident resulting in the claim must have occurred during the coverage period.

EPLI is an important investment for businesses of all sizes, as employment-related claims can be financially devastating and are on the rise. It is also crucial for businesses to understand and follow employment laws, such as those prohibiting discrimination and harassment.

Farmers Insurance offers small business insurance policies, including general liability, commercial property, workers' compensation, and commercial auto insurance. While Farmers Insurance does not specifically mention EPLI, they provide customizable coverage options and have agents who are also small business owners, allowing them to understand the challenges faced by small businesses.

Professional liability insurance

Farmers Insurance Group offers small business insurance with a focus on small business commercial policies. Their general liability insurance covers your defence and any damages should you, an employee, or one of your products or services cause injury or property damage to someone.

• If the professional services that you or your company provided resulted in damage or injury to a client. For example, an accounting firm makes a clerical error that costs the client thousands of dollars.
• If a client claims that false or misleading information convinced them to enter a contract agreement with you or your company, which led to damages to the client. For example, a real estate firm sells a townhouse to a couple intending to start a daycare, but the townhouse association informs them that they can't use the property for that purpose. The couple then sues the real estate firm for negligence.
• If a customer claims that you provided advice that caused them damage. For example, a client sues a florist shop for errors in the services provided after failing to deliver flowers on time for their wedding.
• If someone accuses you or your business of libel or slander, whether it's true or not. For example, a competitor claims that your new advertisements are slandering their business and sues you for damages.
• Copyright infringement: If someone claims that you or your business used their copyrighted work without permission and sues you for copyright infringement.

The cost of professional liability insurance depends on factors such as the size of your business, the industry you are in, your location, and the amount of coverage you need. The median cost of professional liability insurance is $59 per month, but prices can vary depending on the specific circumstances of your business.

Frequently asked questions