Does a farm liability policy cover liability arising from the sale of unprocessed farm products?

A farm liability policy does indeed cover liability arising from the sale of unprocessed farm products. This type of policy is specifically designed to protect farmers from various liabilities that may arise in the normal course of their farming operations, including the sale of goods produced on the farm.

In this case, the coverage extends to unprocessed products because they are still considered part of the farmer's regular business activities. The intent of a farm liability policy is to safeguard farmers against claims arising from products they sell, whether processed or unprocessed, as long as these activities are part of the standard farming operations.

The other options incorrectly suggest limitations or exclusions that do not align with the broad coverage generally afforded by a farm liability policy. This illustrates the importance of understanding the specific protections offered under various types of insurance policies, especially in agricultural contexts.