1. Agritourism 101 Workshop Overcoming the Insurance Barriers Related to an Agritourism Business

2. Risk Management Process Identify and Analyze Loss Exposures Examine Feasibility of alternative Techniques Select Apparent Best Technique Implement the Chosen Technique Monitor and Improve the Risk Management Program

3. Identification Types of Exposures 1. Property 2. Liability 3. Personnel 4. Net Income Methods of Indentifying Exposures 1. Surveys 2. Loss histories 3. Financial Statements 4. Records and files 5. Personal inspections 6. Experts 7. Flowcharts

4. Analysis of Risk Organizational Objectives 1. Profit 2. Continuous operation 3. Stable earnings 4. Growth 5. Humanitarian concerns 6. Legal requirements Significance 1. Loss frequency 2. Loss severity

5. Alternative Techniques for Handling Risks Risk Control Risk Financing

6. Risk Control to Stop Losses Exposure Avoidance Loss prevention Loss reduction Segregation of exposures – Separation – Duplication Contractual transfer for risk control

7. Risk Financing to Pay for Losses Retention 1. Current expensing of losses 2. Unfunded reserve 3. Funded reserves 4. Borrowing 5. Captive insurer Transfer 1. Contractual transfer for risk financing 2. Commercial insurance 3. Hedging (business risk)

8. Agritourism Liability vs. Farm GL Exposures never contemplated by insurance companies Agribusiness application fails to ask for information concerning agritourism exposures Undisclosed Agribusiness events

9. NC Session Law 2005-236 NC Limited Liability Law Law may not protect against all liability exposures Overview of Law

10. Insurance Company View on Agritourism/Special Events Coverage Insurance companies and the rating of exposures are geared to traditional agricultural exposures Standard insurance companies are not confident they are receiving adequate premium for the exposure

11. Pricing Considerations – Premium Based on Exposure Total revenue from agritourism event Total number of participants Total number of days Products liability exposures

12. Proper Risk Management of Agritourism Exposures - Are you prepared for: Crowd control Traffic flow Exposure of unattended children Sufficient staffing Hygiene issues Protection of equipment, supplies, animals and staff

13. Key Considerations for Dealing with Agritourism Risks Expect the unexpected Attention to detail Assess operation from beginning to end to ensure attendees ’ enjoyment and safety Assess operation from customers ’ point to view to anticipate problems Utilize well-trained staff Have emergency plan in place, including first aide on site

14. J. Dal Snipes, CIC Snipes Insurance Services, Inc. PO Box 1165 Dunn, North Carolina 28335 Phone: 910-892-2121 Email: Dal@snipesins.comDal@snipesins.com Website: www.snipesinsurance.comwww.snipesinsurance.com