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Product liability insurance can help farmers manage product liability risk and gain access to additional market outlets. Data from a survey of Tennessee fruit and vegetable producers were used to evaluate differences between product liability insurance users and non-users, barriers associated with the use of this type of insurance, along with insurance coverage amounts and costs. Findings suggest that primary occupation, percentage of income from farming, size of fruit and vegetable operation, and market outlets used may influence the decision to purchase product liability insurance. Barriers to use include perceived costs of product liability insurance and limited understanding of liability insurance policies.

This study focuses on the evaluation of factors affecting producer perceptions of product liability risk in fruit and vegetable marketing in Tennessee. Factors influencing fruit and vegetable producer perceptions are evaluated using probit and semin-nonparametric probit regressions. Results suggested that perceptions of product liability risk are associated with producer age, farm size, whether a farmer produces lettuce or cantaloupes for sale, and number of farms harvesting vegetables for fresh market in the county where the farm operation is located. These findings should help Extension educators and policy makers better understand fruit and vegetable producers’ information needs regarding product liability risk.