Types of Farm Insurance
The following types of farm insurance can be extremely beneficial for farms of all sizes:
Much like a standard home insurance policy, dwelling insurance is designed to protect any living spaces on the farm and the contents within them. This type of coverage can offer protection against theft, fire, storms, vandalism, and other similar events. Some dwelling insurance policies can also provide coverage for attached structures—like garages—for an additional cost.
Farm liability insurance encompasses business liability for large-scale farming operations and personal liability for hobby farmers and their families. For example, if an employee or visitor is hurt while on your property, liability insurance can help protect you from a lawsuit while also covering any costs associated with accidental bodily injury, medical expenses, and property damage.
Building insurance provides coverage for barns, silos, sheds, greenhouses, shops, and any other type of non-dwelling property on your farm. This is especially crucial for larger operations, as these buildings are typically used every day and would cause heavy financial losses if they were to become unusable or otherwise damaged.
Tractors, seeders, sprayers, balers, and other types of equipment are widely used across farms of all sizes. In addition to their utility, these pieces of equipment can be extremely costly to repair or replace should they become damaged or unusable. That is why it is crucial to ensure that your farm machinery is sufficiently covered and protected. Please note that this coverage is only intended for farm machinery that is solely used on the farm for farm-related purposes. In most cases, it does not apply to conventional motor vehicles.
If your farm produces crops such as grain, berries, corn, or other vegetables, it is crucial to ensure that they are protected. Crop insurance is available in both crop-hail insurance and multi-peril insurance. The former is specifically designed to help cover any costs incurred by crops that are damaged by hail, while the latter is designed to help cover the cost of crops that are damaged or lost due to fire, floods, hail, insects, and other natural disasters. Crop insurance policies can be complex, so it is crucial to speak with a professional to ensure that you are choosing the right policy for your specific needs.
When it comes to livestock, there are specific risks that must be considered for insurance. While most livestock insurance policies help cover financial losses incurred by injured or deceased livestock, it is crucial to ensure that you are choosing the right coverage for the animals you tend to and the size of your herd. Livestock insurance can be purchased as individual coverage for specific animals, as herd insurance for large groups of animals, or as part of a blanket policy that covers livestock, equipment, and structures/buildings on the farm.