Business Income And Dependent Property Coverage Rescues More Than Just Dairy Farmers

By | October 28, 2008

Eighty-eight dairy farmers in western Vermont and New York have taken a major economic hit from a Sept. 29 fire at the Saputo Cheese USA plant in Hinesburg, Vt. (about 12 miles southeast of Burlington).

Ten to 12 percent of the state’s entire milk production was purchased by the Saputo plant. The dairy farmers supplying the cheese plant’s need for the 1 million pounds of milk per day must either find alternative buyers for their milk or lose the income from the, on average, 11,300 pounds of milk delivered by each farmer every day.

One of two available endorsements could have been attached to the dairy farmer’s business income policy (if written) to reimburse them for the lost income resulting from the damage to and closure of a third party cheese factory. Click here for more detail.

About Christopher J. Boggs

Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is a veteran insurance educator. He is Executive Director, Big I Virtual University of the Independent Insurance Agents and Brokers of America. He can be reached at chris.boggs@iiaba.net. More from Christopher J. Boggs

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