Dairy is an important aspect of nutrition for many Americans who consume butter, cheese, and milk on a daily basis.
Dairy transporters need agricultural trucking insurance coverage to mitigate the risks of loss, theft, or damage that are unique to hauling livestock and animal byproducts.
Note: This article is for informational purposes and is not an exhaustive list of the different types of coverage that dairy transporters or agricultural trucking fleets need.
Dairy Pollution & Environmental Risks
Dairy transporters need to be prepared for the risks of pollution and environmental liability.
Due to the molecular composition of dairy, weather conditions can affect dairy products in unforeseen ways. Cheese and butter can melt from solid to liquid, which can leak onto roads and contaminate groundwater, surface water, natural resources, or cause public disturbance or bodily injury from bacterial exposure.
Dairy freight spills are considered pollutants. Being held liable for cleaning up accidental spills can be enormously costly if you do not have pollution liability insurance coverage.
Transporting dairy and meat also involves the risk of contamination or refrigeration failure in the event of accidents or unforeseen issues with hose mounting and temperature regulation. Dairy and livestock transporters need to be insured for losses of having to discard the cargo or being unable to deliver the shipment.
Livestock Transit Risks
Imagine an incident in which a driver of your fleet is hauling hundreds of cattle in a truck…and then that truck ends up flipping over in an accident. In one scenario, the animals were being hauled to be relocated to a dairy farm where their milk would be processed to produce milk and butter to be sold to supermarkets. In another scenario, the animals were being hauled to a meatpacking factory to be sold to high-end restaurants. In either scenario, these animals were integral to the operations of the business who hired your fleet to transport them, and now, the death and injuries of these animals will directly affect your client’s bottom line—and yours.
In addition to commercial auto accident coverage, livestock transporters need to be prepared for the hazardous risks and losses that may arise if livestock are crippled or fatally injured in transit.
Livestock transit coverage on a broad or named peril basis protects against losses that occur if covered livestock are crippled or injured in the course of transit. Coverage after transit will cover the death or crippling of registered animals if the death or crippling is the result of a covered cause of loss within a specified period of time. Carcass removal provides coverage for the expense of removing carcasses of covered livestock that had died by a covered incident. Vehicle substitution provides coverage for the expense of a vehicle in the event that a covered vehicle needs temporary or permanent replacement as a result of livestock transit.
At SWAN Insurance, we help dairy transporters like you assess and mitigate the risks of hauling livestock and agricultural products. If you have questions about the best insurance coverage for you, give us a call today.
Call Us Today: 858-381-3108