7 Reasons to Consider Buying Farm Insurance

Sep 30, 2020 | Business Insurance

In the U.S., there are 2.04 million ranches and farms.

90% of these farms are considered small family operations, meaning that their annual gross cash farm income is less than $350,000.

If you’re one of these full-time family farmers, we don’t have to tell you that farming is a noble and difficult line of work.

When you’re putting everything into your farm, you want to know that you’re protected from losing it all. Here are 7 reasons you should consider buying farm insurance.

1. If You’re a Full-Time Farmer

When you’re a full-time farmer, farming is your business. With any business, you want to make sure that you have adequate insurance coverage.

Farming, though, is much more susceptible to the whims of mother nature than other businesses. When you rely on your farm for your income, the last thing you want is for an unforeseen event to lead you to lose everything. Whether you’re a large-scale farm or ranch or you’ve recently upgraded your hobby farm to a small business, having adequate insurance coverage is absolutely necessary.

Depending on the specifics of your operation, you can add additional coverage to the base coverage if necessary.

2. To Cover Farm Machinery and Equipment

Farm machinery and equipment is a huge investment for any farmer. When you are so reliant on these tools for your business to run smoothly, you want to be sure you have the right insurance coverage.

Machines and equipment like tractors, combines, grain bins, silos, farm implements, hay balers, irrigation equipment, windmills, cisterns, and mobile agricultural equipment can be covered by insurance.

A farm equipment insurance policy can include protection of boilers, pressure vessels, water heaters, heating and cooling systems, production equipment, electrical distribution systems, and refrigeration equipment.

3. To Cover Livestock and Their Feed

If you raise livestock for a living, we don’t need to tell you that unexpected events can crop up and cause major headaches at best and devastating losses at worst.

It doesn’t matter what kind of animals you’re raising on your farm, as your farm animal insurance can be customized to cover whichever animal group you need it to. Cattle, sheep, pigs, goats, emu, and chickens, or any combination of these, can be insured under farm animal insurance.

When you’re covering your animals, there are typically three ways to do so.

The first is individual coverage, which covers higher-value animals on an individual basis. The second option is blanket coverage, which allows you to insure all of your farm property based on a predetermined value.

The third option is called herd coverage, which is the most common for livestock. This coverage enables you to insure a specific number of animals.

There are a lot of things that can go wrong when you’re raising livestock. Natural disasters, attack by wild animals, theft and vandalism, and any number of accidents can occur. It’s important to understand the details of your coverage, because not all farm policies include sickness and disease of livestock.

4. To Protect from Storm Damage

Having farm and ranch insurance can help protect your home and possessions from windstorms, hail, fire, lightning, and most accidental losses. A farm insurance policy allows you to combine the standard coverage of a homeowner’s policy with the necessary commercial property and liability coverage for your business.

5. To Protect You If an Injury Occurs on Your Farm

Farm liability insurance is a necessity for any size of farm. People love to visit farms and learn where their food comes from, but if anything were to happen to them or their possessions on your property, you’re the one that’s responsible.

Having farm liability insurance can help you rest easy and not fret about having visitors to your farm.

6. To Protect Your Farm Buildings

A farm property insurance policy will help cover the damages to your barns and farm buildings. This includes the equipment that is used to service the building, such as motors, outdoor equipment, and water pumps.

7. You Can Customize Your Policy to Suit Your Needs

Here at Advantage Insurance Solutions, we know that every farm is unique. That’s why our farm insurance policies are customizable to suit the needs of your operation.

We want to make sure that the things you care about the most are protected. Here are some examples of some of the customizable options for insurance for farmers:

  • Earthquake coverage for ranches and farms near fault lines
  • Identity fraud expense coverage
  • Disruption of farming operations coverage
  • Farm machinery and equipment replacement coverage
  • Sewer/sump pump backup
  • Peak season coverage endorsement
  • Temperature-sensitive endorsement
  • Household property protection

If you have questions about how to tailor a policy to fit your farm’s needs, feel free to contact us today!

How Much Does Farm Insurance Cost?

How much your farm insurance costs will depend on the deductible you choose.

Most farm equipment can be insured for about $15 per $1,000 of value. Livestock mortality coverage typically costs about 2.5% to 5% of the value of the livestock.

Buying Farm Insurance: You’ll Be Glad You Did!

Of course, when you’re buying farm insurance the hope is that you’ll never have to make a claim. If you ever need to, though, you’ll be very glad your insurance is there.

When you buy insurance, you’re basically hoping for the best and planning for the worst. In the unfortunate scenario of damage to your buildings or equipment, or issues with your flock, you’ll have a safety net.

Is it time for you to look into insurance for farmers? If so, request a quote today!