7 Types Of Insurance Needed For Farming

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Owning and running a farm comes with several different risks, from damage to machinery, buildings, or vehicles to public liability claims, to the loss of livestock, etc. Having a farm insurance policy in place can help protect you financially from most of these risks and ensure that your business keeps running smoothly.

Here are the seven different types of insurance needed for farming

  1. Farm Liability Insurance

Farm liability insurance is a type of general liability insurance that covers claims against your farm concerning property damage and bodily injury primarily. If a visitor is injured on your farm by an animal or piece of equipment, liability insurance can pay for the medical bills and protect you from a related lawsuit.

For instance, an animal feed supplier such as naturalstockcare.ie/ trips and fractures their leg during a visit to your farm. Since the accident happened on your farm, the supplier may choose to sue you. In such situations, farm liability insurance can help pay for the person’s medical treatment along with litigation expenses on your part.

  1. Farm Dwelling Insurance

A farm is a unique business in many ways. One major difference from most other businesses or jobs is that many farmers don’t just work on their property – they also live there. Having the right protection depends on each individual family’s situation.

Farm dwelling insurance protects the building you live in located on the farm’s property as well as attached structures, such as a farmhouse along with rental properties. It covers you against damage or loss of liveable structures caused by vandalism, theft, fire, hail, wind, lightning, smoke, etc.

Farm dwelling insurance doesn’t just protect the structure. It also protects the belongings inside your home as well as outdoor structures and appliances. It also helps cover you in case liability claims are made against you or other covered parties on your policy.insurance needed for farming and crop insurance

III. Crop Insurance

Is your farm heavily reliant on crops for income during certain months of the year? Loss of or damage to such crops can lead to significant damage to your farm’s income. Crop insurance offers compensation for crops that are either damaged or lost due to drought, hail, floods, and other extreme weather.

Crop insurance is intended to protect producers against a loss of production and/or revenue from their crops either due to a decline in commodity prices or natural disasters. Multi-peril crop insurance covers crop losses caused by natural events, such as drought, flooding, wildlife damage, fire, disease, destructive weather, etc.

  1. Farm Equipment Insurance

Farms operate primarily with the use of expensive equipment, which includes tractors, ploughs, lorries, etc. Farm equipment insurance does exactly what you might think it does, it covers your farm equipment, supplies, and other machinery.

It covers replacement or repairs if your farm equipment fails due to bad weather, fire, unforeseen breakdowns, and more. Most farm equipment under this policy is covered on the basis of its actual as opposed to how much it would cost to replace it with something new.

Farm equipment insurance is incredibly important since most farmers know that farm equipment isn’t cheap. Just a single tractor can cost tens of thousands and the breakdown of any farm business can be seriously detrimental to your business.

The coverage must be regularly updated as you go through old equipment and buy new equipment to adapt to the changing needs of the farm. Farm equipment can be added either individually or scheduled, or it can be under a blanket policy that gives a total amount of protection for all items.

  1. Livestock Insurance

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Insurance companies consider your livestock as your personal property. If you have livestock on your farm, it’s important to ensure that they are adequately insured. This insurance covers your livestock and livestock feed, even while in transit.

Livestock such as cows and pigs can be quite expensive. If your livestock unfortunately passes away after a collision with a vehicle or other accident, you can be compensated by livestock insurance. However, your insurer will likely not provide compensation for the livestock’s death due to disease or old age.

  1. Farm Auto Insurance

Vehicles play an important role in the smooth functioning of your farm, which is why farm auto insurance should always be a top priority. Farm auto insurance provides coverage such as collision, comprehensive, liability, etc.

Farm auto insurance cover offers protection for farm vehicles such as tractors, combine harvesters, etc. It can also include commercial vehicles specific to your farming business, such as pickups and lorries.

VII. Loss of Income Insurance

Farmers are often the sole income providers for their family. If you are unable to work on your farm due to an illness or injury, you will want to be compensated so that your business is able to survive until you are able to return.

Business interruption, or loss of income insurance, covers your lost income and day-to-day expenses. If you have other workers on your farm, you can even buy additional coverage for wages during the period defined in your policy.

Final Thoughts

Farming is a career that takes more dedication, time, and hard work than most others. To increase your chances of success in agribusiness, it’s absolutely important that you invest in the right type of insurance.

The seven different types of insurance covered here are essential no matter the type of farm you operate. Farm insurance safeguards your machinery, stock, staff, and buildings. Quality farm insurance provides coverage for all these and more.

Buying the right insurance is an investment into your business and can make quite a difference if something were to happen to your farm equipment, home, or an employee. Check with your insurance agent to ensure that you have the right type of insurance and the right amount of coverage to protect your business.


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