As a farmer or rancher, you know that things don’t always go as planned. Even the best-run operations can be hit by the unexpected. If your livestock is your livelihood, ensuring you are adequately protected by livestock insurance is the best way to limit your financial risk.
In addition to cattle, livestock insurance covers domestic sheep, swine, goats, horses, mules, donkeys, alpacas, and llamas.
Most standard farm policies give farm owners the option to add a livestock collision endorsement to their farm policy, but it is not typically included. Livestock collision insurance covers the loss of livestock being hit by a vehicle on a public road, excluding the insured’s vehicles.
Livestock insurance can be endorsed onto a standard farm insurance policy to cover a broad range of perils, including theft and fire. Your insurance agent will go over the named perils with you to make sure you have the right level of coverage for your risk tolerance.
The most common way to cover livestock is to insure them as a herd. When choosing this option, the limit of insurance protection should be for the entire herd value. For farmers or ranchers with animals that are a higher-value per head than the rest of the herd, listing these individually is the best way to ensure adequate coverage.
If the size of your herd fluctuates throughout the year, your insurance agent can adjust your coverage and your premium rate accordingly. Increasing coverage during birthing season and lowering coverage when selling stock can be automatically adjusted with the peak season endorsement. Your insurance agent can assist you with determining the coverage protection based on changes in herd values during the year.
By securing adequate insurance coverage for your farm or ranch, you’ll greatly reduce your financial risk. Contact Grange Insurance Association to get connected with a local, independent agent to discuss your livestock insurance needs.
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