CROP DUSTING

Category: Aviation Risks

SIC CODE: 0721 Crop Planting, Cultivating or Protecting

NAICS CODE: 115112 Soil Preparation, Planting, and Cultivating

Suggested ISO General Liability Code: 91606

Suggested Workers Compensation Code: 7422, 7431

DESCRIPTION OF OPERATIONS

Crop dusting, now more commonly referred to as aerial or agricultural applications, utilizes specially equipped aircraft to spread fertilizers, fungicides, herbicides, and/or pesticides on growing crops. In some areas, crop dusters are used to seed cover crops after the main crops are harvested.

Similar operations include spraying fire retardants on burning forest areas or using aircraft for aerial photography or mapping. The aircraft must fly low to the ground to minimize drift from spraying operations. Checking weather conditions before the flight is critical, as wind can adversely affect drift. Strict compliance with FAA standards for the type, maintenance, and use of the aircraft is critical. Drones, or unmanned aerial vehicles (UAVs), are increasingly used for crop dusting applications due to their small size, increased accuracy, and lower cost.

PROPERTY EXPOSURE

This exposure is high due to fueling, refueling, or repair activities conducted within hangars. All buildings are subject to damage from aircraft. Ignition sources include heating and cooling systems and electrical wiring. If flammable chemicals are used, they should be stored in locked fireproof cabinets away from fueling operations. Repair operations, especially welding and painting, must be monitored with controls in place. All machinery and equipment must be inspected and regularly maintained to avoid wear and tear or overheating losses.

Smoking should be prohibited. Outside equipment and fixtures can be damaged by collision with aircraft or vehicles, hail, ice and snow, lightning, vandalism, and windstorms. Aircraft used for crop dusting could be potential targets for terrorist attacks. Complete plans must be in place to deter and detect terrorism activities. Appropriate security controls, which may include cameras, security guards, and an alarm system that reports directly to a central station or the police department, must be taken to prohibit access to the premises after hours.

BUSINESS INCOME AND EXTRA EXPENSE EXPOSURE

This could be high due to the seasonality of operations unless a backup aircraft is available.

INLAND MARINE EXPOSURE

This is from accounts receivable if there are billings, computers, valuable papers, and records for customers', regulatory, spraying, and suppliers' information. Duplicates should be made and kept off premises for easy replication after a loss. There may be mobile equipment used for communication, markers, and shields that should be covered on a mobile equipment form.

CRIME EXPOSURE

This is due to employee dishonesty and theft of money and securities. Background checks should be conducted on all employees. There must be a separation of duties between individuals handling deposits and disbursements and those reconciling bank statements. Physical inventories, including fuel and chemicals used for spraying, must be made frequently to prevent employee theft.

PREMISES LIABILITY EXPOSURE

This exposure is limited due to the lack of public access. Fire in the fueling area could spread to surrounding hangars or neighboring buildings. Terrorists may target the crop-dusting operations. Adequate security must be in place, with entrance points inaccessible to unauthorized persons. A disaster plan should be in place for unexpected emergencies.

Off-premises exposures can be severe due to the application of chemicals over a wide area. Before a field is sprayed, the pilot should verify the identity of the chemicals and restrict human and livestock access during spraying. Losses can result from overspray, spraying the wrong field or area, improper application of the chemicals, use of the wrong chemicals, and improper mixture of the chemicals. Noise from operations may affect neighboring properties.

PERSONAL AND ADVERTISING INJURY EXPOSURE

This includes allegations of assault and battery, copyright or trademark infringement, defamation (misleading statements made about competitors), discrimination, false advertising, trespassing, wrongful detention, or wrongful ejection from the premises.

PRODUCTS LIABILITY EXPOSURE

The products exposure may be limited if the chemicals are applied as received from the manufacturer. Application of the wrong chemical, wrong amount, or wrong concentration can result in crop failure.

ENVIRONMENTAL IMPAIRMENT EXPOSURE

This exposure is very high due to the handling, storage, distribution, and disposal of the chemicals used in aerial applications. Spray may drift and damage surrounding plants, farm animals, including bees, or wildlife. Leaking fuel may contaminate the air, ground, or water.

Spillage and leaking of pollutants can result in high cleanup costs and fines. Storage and disposal procedures must comply with all Environmental Protection Agency (EPA) requirements. A UST policy may be necessary if fuel tanks are present on the premises.

AUTOMOBILE EXPOSURE

This exposure can be very high if the operation transports the chemicals applied during crop dusting. If the operation owns vehicles, all drivers must have the appropriate licenses and acceptable Motor Vehicle Records (MVRs). Vehicles must be well-maintained with records kept in a central location.

WORKERS COMPENSATION EXPOSURE

This exposure is very high. The lifting, handling, and application of chemicals can result in injuries such as back sprains and strains, as well as inhaling toxic substances. Workers must be fully aware of the side effects and symptoms of medical conditions associated with the chemicals they work with, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible.

Regular physicals to monitor workers’ health may be advisable. Fire and explosion are constant concerns in a fueling area and during repair operations that involve welding or painting. Welding operations generate high heat, intense light, and exposure to carbon monoxide, manganese, nitrous oxide, and ozone. Protective gear and clothing, such as face shields, gloves, and aprons, are essential. Eye protection is particularly important due to the potential for injury from exposure to UV radiation and infrared light.

Slips and falls, burns, falling objects, back strains and sprains from lifting and working in awkward positions, foreign objects in the eye, hearing impairment from noise, or being hit by aircraft or vehicles are common. Safety equipment should be required. Propellers and other moving parts can injure an employee during operation. All controls must be in place and carefully monitored. Crash exposure may be high if the crop dusting aircraft is used in remote rescue or firefighting operations.

AIRCRAFT HULL EXPOSURE

Aircraft Hull coverage covers damages to the aircraft and its equipment. Pilot error, including failure to consider weather conditions, can result in a costly accident. Pilots must adhere to all FAA regulations, including current certifications and ongoing physical examinations. All aircraft and drones must be maintained according to the manufacturers’ specifications, and records of such maintenance must be kept in a central location.

AIRCRAFT LIABILITY EXPOSURE

Aircraft Liability coverage covers bodily injury, damage to cargo, and the property of others. Pilots must meet all FAA regulations, including current certification, for operating the aircraft. They must obtain proper clearance before flying out of or into airports. They must participate in regular training activities to maintain skills. Aircraft and drones must be maintained, and records kept of the maintenance. Crash landings can result in a loss of the entire cargo.

MINIMUM RECOMMENDED COVERAGE

·         Business Personal Property

·         Business Income and Extra Expense

·         Accounts Receivable

·         Computers

·         Mobile Equipment

·         Valuable Papers and Records

·         Employee Dishonesty

·         Money and Securities

·         General Liability

·         Employee Benefits

·         Environmental Impairment

·         Umbrella

·         Hired and Nonownership Auto

·         Workers Compensation

·         Aircraft Hull

·         Aircraft Liability

OTHER COVERAGES TO CONSIDER

·         Building

·         Earthquake

·         Equipment Breakdown

·         Flood

·         Leasehold Interest

·         Real Property Legal Liability

·         Active Shooter

·         Cyberliability

·         Employment-related Practices

·         Underground Storage Tank

·         Business Automobile Liability and Physical Damage

·         Stop Gap Liability

·         Unmanned Aerial Vehicles (UAVs or Drones)