A new farm faces a range of different risks when it comes to day-to-day operations. Without a strong financial background, a single disaster or claim could land a new farm in a world of financial trouble. This is why insurance is so important, as it helps you bear the brunt of accidents so that you don’t have to pay for everything out-of-pocket.
There are various types of farm insurance coverages from liability to crop insurance depending on your needs and specialty.
Farm liability is a type of general liability insurance that helps cover claims against your farm concerning bodily injury, property damage and personal or advertising injury. If a visitor is injured on your farm by a piece of equipment or an animal, liability insurance can help pay for the medical bills and protect you from a related lawsuit.
Farm Dwelling Insurance
Farm dwelling insurance helps protect buildings you live in that may be on the farm’s property along with attached structures, such as a farmhouse and rental properties. This insurance covers you against loss or damage to your livable structures caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
Damage to or loss of crops can cause significant financial damage to your farm’s income. Crop insurance offers compensation for crops that are lost or damaged due to floods, hail, drought and other extreme weather.
Farm Equipment Insurance
Farms operate primarily with the use of expensive equipment such as tractors and ploughs. Farm equipment insurance can step in and provide compensation for repairs or replacement if your expensive farm equipment stops working due to sudden breakdowns, fire, bad weather and more.
If you have livestock on your farm, you will need to insure them, as well. Livestock such as pigs, cows and buffalo can be incredibly expensive to purchase and replace. If your livestock passes away due to a collision with a vehicle or other accident, livestock insurance can provide compensation. This does not generally cover passing away due to old age or illness, however.
Is Farm Insurance Required?
Insurance requirements for farms varies depending on your location and size of your business. In some states, you will be required to offer workers compensation insurance for full time employees, which helps if an employee is injured on the job.
All policies are different, so speak with your insurance agent about insuring your farm with the proper insurance.