Top 5 Farm Insurance Coverage Considerations
Your farm is your livelihood, and if you aren’t properly protected, you’re vulnerable to a wide range of issues that could cause financial ruin. Because Farm insurance is so personalized, it’s important to work with a dedicated Farm Insurance agent who can help you assess your unique needs. At Grange Insurance Association, we’ve been working with farmers and ranchers for over 125 years, which means we understand what it takes to keep your farm safe. Here’s an explanation of what Farm insurance is and the top five coverage considerations to discuss with your insurance agent.
What is Farm Insurance?
Farm and Ranch insurance is a highly customized insurance policy intended to protect policyholders both personally and commercially. In general, Farm insurance can cover a large range of protections, including Equipment coverage, Livestock insurance, Product Liability, and other related coverages.
Farm Insurance Consideration #1: Property Protection
The first thing you’ll want to consider is your farm property, including the land itself and any outbuildings and commercial structures that are used in your farming business, including barns, sheds, silos, and detached garages.
Farm Insurance Consideration #2: Equipment Coverage
Most standard Farm insurance policies don’t cover equipment and breakdowns, which means that without specialty insurance, you’re at risk if your farm equipment stops working when you need it. Equipment Breakdown coverage can protect a wide range of farming equipment, including irrigation systems, feeding systems, milking equipment, refrigeration compressors, and many other types of machinery that are essential to your farming business. When choosing your Farm insurance policy, you’ll want to make sure to discuss these items with your independent insurance agent so you can make sure you’re fully covered for whatever life throws your way.
Farm Insurance Consideration #3: Livestock Coverage
If your farm or ranch business relies on domestic sheep, cattle, chickens, swine, goats, horses, mules, donkeys, alpacas, or llamas, purchasing specialty Livestock insurance can help limit your financial risk. The Grange Insurance Association FarmPak policy starts with built-in coverages like Animal Collision insurance, which does not typically come standard with other Farm insurance policies. In general, Livestock insurance can either cover livestock individually or at total herd value, depending on which option works best for your specific needs.
Farm Insurance Consideration #4: Product Liability
Whether you’re selling dairy products, eggs, fruits, vegetables, jams, or other food products, product liability insurance can protect you in the event that one of your products causes injury or illness to others. In general, product liability insurance pays medical costs up to policy limits for illness or injuries caused by the consumption of a farm product as well as non-economic damages ordered by the court. It even provides a legal defense for the policyholder.
Farm Insurance Consideration #5: Seasonality & Growth
Every farm is different, and your farm insurance needs can change both seasonally and during times of business growth. If, for example, the size of your livestock herd fluctuates throughout the year, it could pay to make seasonal adjustments to your Farm insurance policy. In addition to changes associated with seasonality, any new livestock, equipment, or farm dwellings need to be promptly added to your coverage so that you can rest assured that you’re protected.
Your farm isn’t just another piece of property — it’s your life’s work, which is why it’s so important to protect it. Grange Insurance Association was founded by farmers to protect farmers, and we’ve been serving the unique needs of agricultural families throughout California, Colorado, Idaho, Oregon, Washington, and Wyoming for 125 years. Contact a local independent agent today to discuss your Farm insurance needs, including coverage options and insurance rates.