Whether you have a small family farm or a large commercial operation, you need a farm insurance policy. Things can change quickly and you need to know your family, future, and livelihood are adequately protected.
It can seem overwhelming to know just what coverages to get and how much protection you actually need.
Read on to discover the right questions to ask when shopping for a farm insurance policy.
How Does Farm Insurance Differ From Homeowners?
Homeowners insurance covers the primary residence, immediate surrounding property, and personal belongings. It offers protection from things like floods, theft, fire and other disasters. It also offers liability insurance should anyone become injured while inside the home or on the property.
Farm insurance also covers the residence but has provisions for other detached buildings such as barns and silos. It covers fencing and the surrounding farmland. Depending on your needs you can also include land insurance, farm tractor insurance, livestock insurance, and liability insurance.
The determining factoring for choosing farm versus homeowners depends on the presence of buildings not used as the residence, any owned livestock and also if there are independent workers for the land.
While a basic farm insurance policy is a great added protection for your family, you may still need additional coverages for complete peace of mind.
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Do I Need Farm Equipment Insurance
No farm will run efficiently very long without well-maintained farm equipment. Whether your equipment is brand new, or even a few years old, having a farm tractor insurance policy to protect from unforeseen problems will keep your farm on the right track.
This coverage doesn’t only pay for repairs to your tractor, although that is definitely a plus. It also protects you against damage that is caused by your tractor. These machines are quite big and if they become out of control serious destruction can occur.
There can also be bodily injury that results from an accident involving a tractor. All of these examples are covered by tractor insurance.
Farm equipment coverage isn’t limited to just tractors. It also includes combines, balers, spreaders, and even possibly your backhoe. You need to go over all of the equipment that you use in the operation of your farm and ask about coverage for all of them.
If you are looking to purchase a used tractor, here is some good advice.
What Is Farm Liability Insurance?
Just like the liability insurance on your car pays for damages and injuries to other individuals, farm liability insurance works the same way.
Accidents happen every day in all environments, even on a farm. If you have visitors to your farm that become injured during their stay, this policy will pay for their medical bills and other costs they incur. It also covers damage to their property.
This is the policy that offers protection if the livestock, or other animals on the property, get spooked or loose and hurt someone. Additionally, it covers claims made if someone gets sick on a product you sell at a roadside stand or market.
If part of your yearly income involves using your farm for seasonal activities such as a corn maze, hayrides, strawberry festivals, or Christmas lights, this is the exact policy you need to invest in to cover whatever can happen to the visitors on your farm.
Here are some great ideas on how to make extra money on your farm.
Do I Need Workman’s Comp?
If you have outside workers that you pay to work on your farm, then yes, you need workman’s comp insurance. This is protection against your assets and livelihood in the event one of your employees is injured on the job.
It covers their medical bills and lost time from work while they recover. In the event the accident is more severe, it also provides for disability or even death benefits.
Many farm owners want to know if their family members can be covered under workman’s comp. Those laws differ state to state and if you have family members that work for you, you definitely need to speak with your insurance agent about the rules that apply where you live.
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How Does Crop Insurance Work?
Working farms depend on a good harvest to not only take care of their families, but keep the business going for the next year. One bad harvest can devastate a farm.
Crop insurance works to protect losses in two ways. First, it safeguards against natural disasters such as hail, flood, or drought. It also comes in to help if prices fall in the agricultural sector. Crop insurance is subsidized by the federal government.
Farm Insurance Policy – What About My Livestock?
Not all farms run exclusively on crops. Livestock can play a significant role in the success of a farm. You definitely want coverage for your animals.
Basic coverage includes protection for accidents. This can include fire, explosions, and even loading and unloading of the animals in transit. There is coverage for natural disasters that helps when your livestock are lost due to flooding, hail or lightning.
Livestock insurance is where you would turn in the event of theft or a crime involving your animals.
You can also specialize your coverage in the event you need more protection for a specific animal or breed. Additionally, you can customize the policy to include attacks by other animals, drownings or accidental shootings.
Protect What Is Yours
Farmers are extremely passionate and proud of their work. Unfortunately, there are many unknowns and things can change quickly.
Having a good farm insurance policy will protect your livelihood and family not only in the short term but help keep your farm profitable and growing for years to come.
Never hesitate to go the extra mile to make sure all of your insurance questions are answered. For all the ways we can help, reach out.