Author: Meredith Smith

Agriculture is evolving rapidly, and drones are one of the main drivers of this change. What once was a novelty – a fun way to take pictures of your fields – has now become a vital business tool. Today’s drones can map fields, scout crops, apply chemicals, monitor livestock, and document storm damage in minutes instead of hours.

However, as drones shift from hobby devices to commercial equipment, the insurance requirements also change. Many farmers unintentionally create coverage gaps without realizing it.

Below is a clear and practical overview of what farmers need to know before flying a drone for business or farm purposes.

Why Drones are Becoming Essential in Agriculture

Farmers are adopting drones because they assist with:

• Crop scouting – detecting stress, disease, and nutrient issues early
• Acreage mapping – quick, accurate measurements for planting and insurance
• Livestock monitoring – checking remote pastures without wasting fuel
• Chemical application – targeted spraying and spreading with precision
• Storm documentation – fast aerial photos for claims and adjusters

These tools save time, cut labor, and enhance decision-making. But they also introduce new liability risks that traditional farm policies don’t automatically cover.

The Three Key Types of Drone Insurance Every Farmer Should Know

When a drone is used for business or farm operations, it’s no longer considered a hobby aircraft. That means you require specialized insurance, not just standard farm liability policy.

Here are the three main coverages every agricultural drone operator should consider.

Physical Damage Coverage (Hull Coverage)

This covers the drone itself – aircraft, batteries, sensors, cameras, and payload systems.

Why it’s important:

• Drones in agriculture often cost $5,000-$40,000+
• They operate in high-risk environments: trees, power lines, wind, dust, chemicals
• A crash is more a question of when than if

Physical damage coverage pays for repairs or replacement, whether the damage results from pilot error, mechanical failure, or environmental factors.

Chemical Liability Coverage

This is crucial for spraying drone (spreading, seeding, or liquid application).

Chemical liability covers:

• Drift
• Misapplication
• Wrong chemical or incorrect rate
• Damage to neighboring crops
• Bodily injury or property damage caused by chemical exposure

Most standard farm policies exclude chemical drift from unmanned aircraft.

Most commercial general liability policies exclude aviation exposures altogether.

So, if a drone applies product incorrectly or drift damages a neighbor’s crops, you need a specific chemical liability endorsement tied to drone operations.

General Liability (Aviation Liability)

This covers bodily injury or property damage caused directly by the drone – not the chemicals.

Examples:

• Drone hits a vehicle
• Drone injures a bystander
• Drone damages a roof during mapping
• Drone causes a fire by hitting power lines

Regular farm liability does not automatically extend to drones.

You need aviation-specific liability coverage to protect your farm.

Don’t Forget: You Need FAA Part 137 for Spray Operations

If you’re applying chemicals with a drone, you must have:

FAA Part 107

• Required for all commercial drone operations.

FAA Part 137

• Required for aerial applications including spraying, spreading, and seeding.

Operating a spray drone without Part 137 can:

• Void insurance coverage
• Lead to FAA fines
• Create legal liability if there’s a drift claim

Insurance providers will ask for:

• Part 107 certificate
• Part 137 operating certificate
• Pilot training documents
• Maintenance logs
• Aircraft registration

If you spray without these, you’re leaving yourself unprotected.

Why This Matters for Farmers

Drones are becoming as common as tractors, but the insurance industry hasn’t fully caught up. Many farmers assume their farm policy covers drones – but most policies exclude:

• Aircraft liability
• Chemical drift
• Aviation operations
• Unmanned aerial systems

A single uncovered claim could cost tens of thousands of dollars.

A Simple Rule for Farmers

If the drone is used for anything related to the farm, treat it like farm equipment with aviation exposure, not a toy.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Almost every business deals with pollutants of some kind, especially when you consider that the term “pollutant” covers such a wide range of materials. Airborne particles, asbestos, lead and even simple household cleaners are just some of the common substances that can damage the environments and cause adverse health effects. And, because pollutants cause so much harm and are hard to remove, all businesses need to consider how to protect themselves from this common liability.

Will My CGL Policy Cover Pollution Claims?

Unfortunately, many employers wrongly assume that their commercial general liability (CGL) insurance policies include coverage for pollution-related claims. However, almost all of these policies include excursions that catch businesses off guard. Pollution claims often include fees for things like cleanup efforts, legal defense, property damage and medical care, which means that even on unexpected claim can lead to a devastating financial blow.

Even though CGL policies can’t protect you from pollution claims, there are stand-alone policies and endorsements that can give you coverage. However, you need to consider how your operations, third-party exposures and other unique circumstances might determine the option that’s best for you.

Why CGL Policies Aren’t Enough

CGL policies cover a wide range of risks, but the massive costs associated with pollution claims led insurance carriers to create two common exclusions – generally referred to as absolute and total. Despite these seemingly restrictive names, these exclusions include an extremely small amount of pollution coverage for certain losses, such as fire or damage caused by a building’s vents. However, businesses can’t rely on these limited exceptions for protection.

Even if a loss seems to fall under one of the exceptions to an absolute or total CGL exclusion, insurers can use the broad definition of the term “pollution” to deny claims. Court rulings involving the exclusion also vary widely, making coverage under a CGL policy even less reliable.

The Options for Reliable Pollution Coverage

Workplaces with even small pollutions risk exposures need to consider how additional insurance options can help protect them. Here are some key details on four types of pollution coverage:

• Contractors pollution liability: Contractors often work on projects that can lead to short- or long-term pollution, such as water runoff that affects a local water supply or a loose window seal that causes mold to form. These policies protect contractors from losses caused by their regular operations or those performed by subcontractors.
• Products pollution liability: This type of coverage can protect a business from products that could fail and lead to pollution, such as air filters and fuel containers. Even if your business doesn’t manufacture these products, these policies can help protect you if the original manufacturer doesn’t have pollution coverage, or if your business’s distribution of maintenance of the product contributed to a loss.
• Premises pollution liability: Most businesses have to manage environmental risks at their workplaces, even from something as simple as normal trash disposal. This coverage – also referred to as site pollution liability – can be customized to cover entire buildings or specific risks, such as outdoor fuel tanks or medical equipment.
• Transportations pollution liability: While other types of pollution insurance focus on a specific location, businesses are still at risk whenever potential contaminants are in transit. This type of coverage can protect businesses if pollutants are released during vehicle collisions, mishandled unloading procedures and more.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Employee benefits are one of the most regulated areas of running a business – and also one of the easiest places for compliance gaps to go unnoticed. Many employers assume that offering benefits through a carrier or using a third-party administrator automatically means they are compliant. Unfortunately, that assumption can be costly.

Hidden compliance risks often don’t surface until an audit, employee complaint, or penalty notice arrives. By then, the damage is already done.

Why Benefits Compliance Is So Easy to Get Wrong

Benefits compliance involves a complex web of federal and state regulations, including ERISA, the Affordable Care Act (ACA), COBRA, HIPAA, and more. These rules evolve regularly, and responsibility often falls across multiple vendors – carriers, payroll providers, HR platforms – none of whom ultimately own compliance on the employer’s behalf.

At the end of the day, the employer is the plan sponsor and fiduciary.

That means even unintentional mistakes can result in fines, penalties, or legal exposure.

Common Hidden Compliance Risks Employers Overlook

1. Missing or Outdated Plan Documents
   • Many employers don’t realize that ERISA requires specific written plan documents and Summary Plan Descriptions (SPDs) – not just benefit summaries from carriers. Plans that haven’t been updated in years may no longer reflect how benefits actually operate, creating risk during audits or disputes.
2. Inconsistent Plan Administration
   • Administering benefits differently than described in plan documents – such as eligibility rules, waiting periods, or employer contributions – can violate ERISA and expose employers to claims of unfair treatment.
3. ACA Reporting Errors
   • Forms 1094 and 1095 are highly technical, and small mistakes can trigger IRS penalties. Misclassifying employees, missing filing deadlines, or using inaccurate affordability calculations are common – and often unnoticed until penalties arrive.
4. COBRA Missteps
   • Late notices, incorrect premium calculations, or failure to offer coverage properly to eligible employees are frequent compliance failures. Even employers that outsource COBRA administration can remain liable for errors.
5. HIPAA Privacy and Security Gaps
   • Employers handling protected health information (PHI) must follow HIPAA privacy and security rules. Using unsecured email, sharing information improperly, or lacking required policies and training can all create risk.
6. Eligibility and Enrollment Errors
   • Allowing ineligible employees or dependents to enroll – or excluding eligible ones – can result in carrier disputes, denied claims, and potential legal exposure.

Why These Risks Often Go Undetected

Most compliance issues don’t impact daily operations. Employees may not notice documentation gaps, and agencies rarely audit without a trigger. But issues often surface after:

• An employee files a claim or complaint
• A former employee challenges a benefits decision
• The company grows past ACA threshold
• A merger, acquisition, or due diligence process begins

At that point, correcting past mistakes becomes far more expensive.

How Employers Can Reduce Compliance Risk

Employers don’t need to become compliance experts – but they do need a proactive approach:

• Conduct regular benefits compliance reviews
• Ensure plan documents and SPDs are current
• Coordinate vendors so administration matches documentation
• Monitor workforce size and ACA obligations
• Train HR staff on basic HIPAA and COBRA requirements

Most importantly, employers should work with an advisor who understands both the regulatory landscape and the practical realities of benefits administration.

The Broker’s Role in Compliance Support

A strategic benefits broker does more than negotiate rates. They help identify gaps, coordinate documentation, and flag risks before they turn into penalties. While brokers aren’t attorneys or CPAs, they play a critical role in helping employers stay informed and prepared.

Final Thoughts

Compliance risks in employee benefits are often invisible – until they’re not. Taking a proactive, preventative approach can protect your business, your leadership team, and your employees.

If it’s been a while since your benefits compliance was reviewed, now is the time to look under the hood.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

When a fire breaks out in a commercial building, the first few minutes can determine the outcome. Flames and smoke can move quickly, spreading far beyond the area where the fire began. While automatic sprinkler systems and alarms play an important role, one of the most effective tools for limiting fire damage is often overlooked: the fire door. Fire doors are specifically designed to slow the spread of fire and smoke, but they can only perform this function when they are closed.

When properly closed and latched, fire doors help divide a structure into fire-resistive sections, limiting how far flames and smoke can travel. This containment protects exit corridors and stairwells, allows occupants additional time to evacuate and supports more effective firefighting efforts. In many scenarios, closed fire doors significantly reduce overall damage and business interruption.

Standards developed by the National Fire Protection (NFPA), including NFPA 80, stress that fire doors must be maintained in working condition and free of obstructions. A fire door that is propped open or prevented from closing cannot perform its intended function. Even a small opening can allow smoke and heat to move freely into other areas of a building, defeating the purpose of the fire-rated barrier. Therefore, it’s crucial for employers to understand the risks posed by open firs doors and implement best practices for fire doors.

The Risks of Open Fire Doors

When fire doors are left open, several serious consequences can occur:

• Smoke spreads rapidly throughout adjacent spaces, reducing visibility and increasing the risk of smoke inhalation for occupants attempting to evacuate.
• Fire moves beyond its point of origin more quickly, allowing flames and heat to reach areas that would otherwise be protected by fire-rated separations.
• Exit routes and stairwells may become unusable, limiting safe evacuation options and increasing the likelihood of injuries or fatalities.
• Fire suppression efforts become less effective as firefighters face a larger, less contained fire that is harder to control.
• Property damage and business interruption losses increase significantly as fire affects more of the building and extends recovery time.

From and insurance perspective, propped-open fire doors are frequently associated with larger claims, extended downtime and higher repair costs, particularly when fire spreads beyond its initial area of origin.

Common Reason Fire Doors Are Left Open

Fire doors are rarely left open with the intent of creating a hazard. In most cases, the issue stems from day-to-day operations pressures, building comfort concerns, or a lack of understanding about how fire doors function. Common reasons why fire doors are left open include the following:

• Opening fire doors may help with temperature control or ventilation, particularly in areas where airflow is limited or heating and cooling systems are uneven.
• Frequent foot traffic or the movement of carts, pallets, and equipment can lead employees to prop doors open for convenience and efficiency.
• Some employees perceive closed fire doors as an inconvenience that slows down routine tasks or disrupts normal workflows.
• A lack of awareness of fire doors’ purpose and role in containing fire and smoke can lead employees to underestimate the risks of leaving them open.
• Broken, damaged or poorly maintained self-closing mechanisms may prevent fire doors from closing properly, leading occupants to leave them open rather than report the issue.

Best Practices to Follow

Fire doors are most effective when they are consistently used, properly maintained and supported by clear workplace expectations. To reduce fire risk, support code compliance, and limit the potential severity of losses, businesses should adopt the following best practices as part of their overall safety and risk management programs:

• Never prop fire doors open unless they are equipped with approved automatic hold-open devices that are designed to release and allow the door to close when a fire alarm of detection system is activated.
• Ensure fire doors fully close and latch without obstruction so they can perform as intended during a fire and maintain the integrity of fire-rated barriers.
• Conduct regular inspections of fire doors and associated hardware according to applicable NFPA standards to identify damage, missing components or conditions that could prevent proper operation.
• Repair damaged hinges, closers, seals, or latching mechanisms promptly to prevent small deficiencies from compromising the door’s fire-resistance rating.
• Train employees on the purpose and importance of fire doors so they understand why doors must remain closed and how their actions affect overall fire safety.
• Post clear and visible signage reminding workers to keep fire doors closed.
• Include fire door checks as part of routine safety audits and facility inspections to reinforce accountability and ensure ongoing compliance.

Keeping fire doors closed is one of the simplest and most cost-effective steps a business can take to reduce fire risk. When these doors are used as designed, they protect lives, limit property damage and help preserve operations. When they are held open or neglected, they can allow a small fire to escalate into a significant and costly loss.

Contact us today for more risk management guidance.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Molds are organisms that breakdown animal matter and dead plants. Though most molds grow outdoors, they can travel inside by way of open windows and doors, air conditioning systems and on pets, clothing, and shoes. Once inside your home, mold needs a moist food source, such as lint, ceiling tiles or wallpaper to grow.

Mold not only damages your property, but it can also cause serious health complications after long-term exposure. With this in mind, try these prevention tips to keep mold out of your home.

• Clean up any water damage or flooding thoroughly and immediately.
• Use dehumidifier and a wet/dry vacuum to remove water quickly.
• Remove carpeting that cannot be dried out within 48 hours. If your carpet was contaminated by sewer water or a flood, it needs to be replaced.
• Repair basement cracks so that moisture cannot seep in.
• Add mold inhibitors to paint.
• Use a dehumidifier and/or air conditioner to reduce indoor moisture, especially during humid months of the year.
• Empty the drip pans in your air conditioner, refrigerator and dehumidifier regularly to prevent water buildup.
• Run the exhaust fan for 20 minutes before and after showering, or consider using a humidistat-controlled fan that turns off when the moisture is ventilated from the area.
• Fix plumbing leaks immediately. Mold will begin to grow within 24 to 48 hours after a leak.

The Complications of Mold Exposure

A mold problem can cause serious health effects – especially for young children, the elderly, those who suffer from allergies or asthma and those with prior respiratory conditions. Symptoms of mold sensitivity include eye irritation, nasal stuffiness, shortness of breath, wheezing and lung infections (in rare cases).

If you or a family member is experiencing some of these symptoms, consult a physician for a proper evaluation and diagnosis. For more home safety guidance and homeowners insurance solutions, contact us today.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Spring can bring about some of the year’s most dangerous weather and wreak havoc on many aspects of a company’s operations. This article discusses the weather threats to watch out for during spring and measures businesses can take to minimize damage.

Dangerous Spring Weather

Unexpected severe weather increases the risk of property damage, injury, and even death. Here are some common types of spring weather events”

Tornadoes – According to AccuWeather, tornadoes are by far the most extreme event in the spring. Winds from tornadoes can exceed 200 miles per hour, sending debris flying.

Thunderstorms – Sever thunderstorms can produce strong winds, large hail, and lightning. If lightning strikes in a dry area, fires can occur.

Flooding – Snowmelt, ice jams, and heavy rain can produce large amounts of water runoff in a short period of time, resulting in floods.

Blizzards – Snowstorms that occur in the spring may cause power outages or property damage. They can also force businesses to shut down.

Excessive heat – The second half of spring typically brings higher temperatures, leading to heat-related disorders or illnesses if employees work in outdoor environments.

Minimizing Risks

While springtime weather may be unpredictable, businesses can minimize risks to both people and property by preparing for all situations. Business leaders should consider the following precautions:

Develop a plan. If employees have to travel to work, severe spring weather could put them in danger on the road. In addition, shelter-in-place orders or power outages could also pose threats to onsite employees, clients, and customers. Having a plan in place can help everyone remain safe during an emergency. Outline what employees should do in different circumstances – such as a power loss – and have a communication protocol. Conduct drills until the plan becomes second nature.

Keep an emergency kit on hand. The kit should contain emergency supplies, including flashlights, water, a first-aid kit, blankets, extra batteries, a toolset and current contract information for state and local entities.

Secure the property and outdoor assets. Dead trees, weak structures and unsecured materials can become airborne hazards during windstorms, damaging buildings or external systems. If severe weather is in the forecast, complete preventative maintenance, close windows securely, bring outdoor furniture inside and clear out storm drains.

Back up data. Severe weather can cause power outages and may physically damage equipment. Back up critical data often to help smoothly rebuild systems.

Obtain proper insurance coverage. An experience insurance broker can help business leaders understand and plan for the impacts of catastrophic weather. Complete a coverage review to ensure there are no gaps in coverage that will result in an uncovered loss.

By minimizing the opportunity for property damage, preparing employees to act and working with an experienced broker to ensure the appropriate insurance coverage is in place, businesses can better mitigate risks during the springtime. For more information, contact us today.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.