Alabama Insurance Adjuster Practice Exam

What type of insurance does Farmer Bob need to sell his lettuce to a wholesaler after an illness incident?

1. Crop-Hail insurance

2. Farm Product Liability insurance

3. General Liability insurance

4. Business Interruption insurance

The correct answer is: Farm Product Liability insurance

Farmer Bob needs Farm Product Liability insurance to sell his lettuce to a wholesaler after an illness incident. This type of insurance protects farmers from claims arising out of the sale of their products, particularly when those products are alleged to have caused harm, such as foodborne illnesses. If a wholesaler were to claim that the lettuce caused illness among consumers, this insurance would cover legal fees, medical expenses, and any settlements or judgments. While Crop-Hail insurance is tailored to protect against damage to crops from hail, it does not cover liability claims associated with the sale of those crops. General Liability insurance is more generalized and might provide some coverage for premises and operations exposures, but it is not specifically focused on the products being sold. Business Interruption insurance offers coverage for loss of income due to disruptions but does not address liability issues arising from product sales. Thus, Farm Product Liability insurance stands out as the most appropriate type of coverage for Farmer Bob in this situation.