FARM INSURANCE
The Dirt On Farm Insurance
ROB SCHABLE , OPTIMIZATION CONSULTANT , GENERAL INSURANCE SERVICES
BY ROB SCHABLE
When a person eats a piece of corn , they don ’ t think about the months it took for the seed to sprout , grow , and flourish , or the long hours in the hot sun spent harvesting the corn . They don ’ t consider the machinery required to package the corn to be shipped around the world , and they definitely don ’ t spend time worrying about all the people that made it happen behind the scenes . However , there is one person who has to think about all of these things : the farmer .
The job of a farmer is complex and nuanced , with few understanding what it truly takes to operate a farm and provide food to the masses . Because of the complexity of the work and the regulations in the industry , every farmer , no matter their crop focus , should have farm insurance . Farm insurance , not all that different from home insurance or business insurance , helps protect farmers and their farms from crop damage , worker injury , and more .
We ’ ll plow our way right into the middle of everything you need to know about farm insurance . If you ’ re wondering what it covers , how much it costs , and more , then you ’ re in the right place .
WHAT DOES FARM INSURANCE COVER ?
Depending on the type of farm you have , you might face unique risks or situations that require specialized coverage , but most farm coverage policies include coverage for crop and livestock damage , property damage , on-site injuries , and retail and wholesale liability .
Heavy machinery and harsh climate conditions make farming a challenging undertaking , but with the right insurance , you can protect yourself , your farm , and everyone that interacts with it . Farmers can pick and choose certain coverages based on what they grow , who they serve , and how they manage their farms , but these are the major categories of protection :
Crop And Livestock Damage
If a horrible fungus infects the entire crop for one harvest , it could put a farmer out of business — without insurance , that is . Crop and livestock damage coverage protects your farm ’ s most valuable assets from loss caused by natural disasters . For farmers that have many different types of crops and livestock , it can be challenging to find a comprehensive insurance policy , but the Whole Farm Revenue Protection policy makes wide-reaching coverage more accessible and protects from hail , disease , flooding , and other disasters .
Property Damage
Just like homeowners and renters take out policies to cover property damage , farmers should have coverage for their property , too . If a massive tornado sweeps through the farm field or a fire burns down the barn , your property insurance can insulate you from devastating rebuild costs and lost-crop revenues . This type of insurance often covers losses when equipment breaks down , animal feed gets infested , or farm tools stop working .
Injury Protection
With heavy machinery and plenty of other hazards , farms need insurance coverage to protect them from any situation where a person could get injured on the farm or at a farm-related location like a customer drop site . Policies usually come with legal protection to help farmers navigate any court orders or subpoenas and help compensate any injured parties . Most of the time , standard farm property and liability insurance is sufficient protection , but depending on your farm , you might need special protections .
Not only can guests or customers face injuries , but farm workers are at risk , too . Lifting heavy bales of hay and operating heavy machinery are part of the job , but they are also occupational hazards that can result in injuries even with tight safety precautions in place . If a farm doesn ’ t have workers ’ compensation coverage , it could be sued . Be sure your policy includes employees , interns , volunteers , and anyone else who might be working on your farm .
Commercial Insurance
When farms sell their products through grocery stores or partner with wholesale distributors , they might be required to have commercial general liability insurance . This bolsters the traditional liability coverage to include off-farm
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