A Daybreak Farms site caught fire on the evening of Tuesday, January 23rd, 2023.
Firefighters were sent out to the farm around 7:30 PM. According to the Palo Alto Sheriff's Office, firefighters were able to clear the farm at approximately 1:00 AM on Wednesday morning. The fire was contained to one house, which was a total loss.
No injuries or fatalities have been reported.
Insuring layer houses has become difficult
Insurance is one of the most important parts of having a successful poultry farm. However, it can be difficult to obtain.
The number of egg farm fires over the last few years has caused insurance to increase significantly in costs for producers.
Additionally, the re-build cost for the houses has grown. According to Brett Cohrs, Palomar Insurance Sr. Vice President, and Ross Milne, Cottingham & Butler Risk Management Consultant, the significant increase in cost is due to a combination of increased material cost, increased labor costs and the fact producers are for the most part building larger, cage-free facilities.
Currently, egg producers use multiple insurers to share the risk to provide the amount of coverage needed, especially for larger farms. However, this has led to insurers reducing the amount of coverage they are willing to offer to any one egg producer, explained Cohrs.
“Underwriter appetite has become so restricted that no insurance company is willing to insure 100% of the risk exposure.” stated Milne. “We have to go all over the world to find insurance for the poultry industry and build programs with multiple carriers.”
An insurance provider’s coverage decisions are multifaceted and the portfolio or submission that is presented to a provider is critical.
“Risk mitigation technology, practices or site improvements, such as new construction with plenty of spatial separation from other buildings, help increase the participation of insurers,” added Cohrs.
Cohrs recommends including information such as fire prevention plans and third-party audits in submissions for insurance underwriters.
