If you are new to owning a farm, you probably have a lot of questions, including questions about farm insurance. Like auto insurance protects your car, farm insurance protects many aspects of your farm, including equipment and livestock. If you would like to learn more, keep reading to find out what is typically included in a standard farm insurance policy.
Farm Equipment Coverage
Depending on the type of farm, you may use a lot of equipment to care for your livestock and products. Naturally, this equipment is vulnerable to wear and tear, damage, theft, vandalism, and much more. Just like auto insurance, in the event of a covered event, the insurance carrier will cover the cost of the damaged farm equipment.
Common farm equipment that is usually covered under farm insurance includes tractors, combines, planters, sprayers, irrigation equipment, farm office equipment, and tools/supplies. Not all perils are covered under a standard policy, but most policies will cover the most common risks. These risks include fire, lightning, wind, hail, theft, collision, damage during towing, and others.
Depending on your financial situation and the types of equipment you own, you may choose blanket coverage or schedule coverage. A blanket coverage policy protects all your equipment. However, if you only want to cover one or two pieces of equipment, or if you have a piece of equipment that is particularly expensive, a schedule coverage policy may be best, so you can better choose the parameters of the coverage.
If part of your income relies on livestock, you also need coverage to protect them. Like farm equipment, if something happens to your livestock, it could financially ruin you or your farm. Livestock coverage provides money if a covered animal is lost to a covered event, and it protects animals of all kinds, including cattle, pigs, sheep, chickens, horses, buffalo, emus, elk, and many more.
You have the option of choosing a blanket policy to cover all your livestock, or you can cover specific animals that have a higher value. Covered events usually include accidents (like fire, smoke, etc.), natural disasters (including extreme weather), crimes, and issues during transit.
There are some perils that are usually not covered under livestock coverage. One leading threat to your livestock is an attack from a dog or wild animal. Unfortunately, this is usually not covered under a standard policy. Other perils that aren’t typically covered include accidental shootings, drownings, and the collapse of a building.
Farm Liability Coverage
When you own a home, you need homeowners insurance to help protect you against liability claims. If someone is injured while on your property, the insurance covers the cost of any court fees and the settlement. Similarly, someone could get injured on your farm, but farms have many unique risks that traditional homes don’t have.
Therefore, you need farm liability coverage to help you financially if someone is hurt on your farm. Commonly covered events include injury from farm accidents, acts of a pet or livestock, product liability, etc.
However, many farm owners choose additional coverage for better protection. This includes employers’ liability, pollution (from tractors or other farm equipment), unmanned aircraft systems, and farm chemicals limited liability. Naturally, the more coverage you have, the higher your premiums, but you will be better protected in the event of a personal injury lawsuit.
If you own a farm, you should consider farm insurance to better protect you and your investments. Not only will it help cover expenses related to personal injury, but it will help replace damaged farm equipment or lost livestock. For more information, or if you are ready to get a quote, contact us at Kenneth Rhodes & Associates Inc today.