Protect Your Farm: 10 Things Covered by Farm Insurance

As a farmer, I know the importance of protecting my farm and everything on it. That’s why I have farm insurance. 

Farm insurance is a type of insurance that provides coverage for various things related to farming and ranching.

Farm insurance lets you have peace of mind knowing that you’re covered in unexpected events, such as natural disasters, accidents, or theft. 

But what exactly does farm insurance cover? In this article, I’ll list 10 things that farm insurance typically covers.

The information provided in this article about farm insurance is intended for general informational purposes only. It is not intended to provide legal, financial, or insurance advice. Every farm and insurance policy is unique, and readers should consult with their insurance agent or legal advisor to determine the specific insurance coverage that is best suited for their individual needs.

Property Coverage

Property coverage

As a farmer or rancher, your property is your livelihood. That’s why it’s essential to have property coverage as part of your farm insurance policy. Property coverage can provide financial protection for your buildings, structures, and other personal property on the farm or ranch. Here are the three main sub-sections of property coverage:

Dwelling and Structures

Property coverage can help protect your dwelling and other structures on your farm or ranch. 

This includes your home, barns, sheds, and other buildings used for farming or ranching operations. 

If any of these structures are damaged or destroyed by a covered peril, property coverage can help pay for the repairs or replacement.

Equipment and Machinery

Farm machinery

Farm machinery and equipment are essential for your farming or ranching operation. 

Property coverage can help protect your equipment and machinery from damage or loss due to a covered peril. 

This can include tractors, combines, irrigation systems, and other equipment used on your farm or ranch.

READ ALSO: Starting a Small Farm: A Complete Beginner’s Guide

Livestock and Produce

If you raise livestock or grow crops, you know their importance to your business. 

Property coverage can help protect your livestock and produce from damage or loss due to a covered peril. 

This can include livestock, such as cattle, horses, and pigs, as well as crops, such as corn, soybeans, and wheat.

Overall, property coverage is an essential part of your farm insurance policy. 

It can help protect your property and keep your farming or ranching operation running smoothly. 

By having property coverage, you can have peace of mind knowing that your property is protected in case of a covered loss.

Liability Coverage

Liability

As a farmer, I understand that accidents can happen on the farm. That’s why liability coverage is essential to any farm insurance policy. 

Liability coverage protects me against financial loss if someone is injured or their property is damaged due to my farming operations.

Personal Liability

Personal liability coverage protects me if someone is injured on my farm or their property is damaged. 

For example, if a visitor to my farm slips and falls, personal liability coverage will help pay for their medical expenses and any legal fees that may arise from the incident.

Product Liability

Product liability coverage protects me if someone is injured or becomes ill from consuming a product I produce on my farm. 

For example, if someone becomes sick after eating eggs from my farm, product liability coverage will help pay for their medical expenses and any legal fees arising from the incident.

Pollution Liability

Pollution Liability

Pollution liability coverage protects me if pollution from my farm causes harm to others. 

For example, if chemicals from my farm contaminate a nearby stream, pollution liability coverage will help pay for the cleanup costs and any legal fees that may arise from the incident. 

In conclusion, liability coverage is crucial to any farm insurance policy. It protects me against financial loss if someone is injured or their property is damaged due to my farming operations. 

Personal, product, and pollution liability are important sub-sections of liability coverage that I need to consider when selecting my farm insurance policy.

READ NEXT: Farm Insurance vs. Homeowners Insurance: A Quick Comparison Guide

Natural Disaster Coverage

Fire on farm

As a farmer, it’s important to have insurance coverage that protects your crops and property from natural disasters. 

Some of the most common natural disasters that can cause significant damage to farms include fire and lightning, tornado and windstorms, and flood and water damage. 

In this section, I will explain how farm insurance can cover these types of natural disasters.

Fire and Lightning

Fire and lightning can cause significant damage to crops, buildings, and equipment. 

Farm insurance can provide coverage for damage caused by fire and lightning, including damage to crops, barns, silos, and other farm buildings. 

It can also include the cost of debris removal and replacing damaged equipment.

Tornado and Windstorm

Tornadoes and windstorms can cause significant damage to crops, buildings, and equipment. 

Farm insurance can provide coverage for damage caused by tornadoes and hurricanes, including damage to crops, barns, silos, and other farm buildings. 

This coverage can also include the cost of debris removal and the cost of replacing damaged equipment.

Flood and Water Damage

Flooded farm field

Floods and water damage can cause significant damage to crops, buildings, and equipment. 

Farm insurance can cover damage caused by floods and water damage, including damage to crops, barns, silos, and other farm buildings. 

It can also include the cost of debris removal and the cost of replacing damaged equipment.

It’s important to note that not all farm insurance policies provide coverage for natural disasters. 

Be sure to review your policy carefully to understand what types of natural disasters are covered and what types of coverage you have. 

Additionally, some types of natural disasters may require additional coverage or a separate insurance policy. 

For example, earthquake insurance is typically not included in a standard farm insurance policy and may need to be purchased separately.

Crime Coverage

Broken window

As a farmer, it’s essential to have insurance coverage that protects your property from criminal activities. 

Crime coverage is an essential part of farm insurance and provides protection against various types of criminal activities.

RELATED: Is Farm Insurance Necessary? Here Are The Answers!

Theft and Vandalism

Theft and vandalism can cause significant damage to your farm property. 

Farm insurance provides coverage for theft and vandalism, including damage to your buildings, equipment, and livestock. 

For example, if someone steals your tractor, your insurance policy will cover replacing it. 

Similarly, if someone vandalizes your barn, your insurance policy will cover the cost of repairing the damages.

Employee Dishonesty

// coverage can help if employees steal from your company — whether on their own or with the help of outsiders. 

It’s essential for farmers who employ workers to help run their operations. 

For example, if one of your employees steals livestock or farm equipment, your insurance policy will cover the losses. 

It can also protect against fraudulent activities, such as embezzlement or forgery.

Crime coverage as part of your farm insurance policy is crucial for protecting your property and ensuring your business continues operating smoothly. 

With the right coverage, you can have peace of mind knowing that you’re protected against criminal activities that could otherwise cause significant financial losses.

Business Interruption Coverage

Income

As a farmer, I know how important it is to have a steady income to keep the farm running smoothly. 

Unfortunately, unexpected events like natural disasters, fires, and other unforeseen circumstances can disrupt your farming operations, leading to a loss of income. 

That’s where business interruption coverage comes in. Business interruption coverage is a type of insurance that provides financial protection to farmers when their farming operations are interrupted or suspended due to a covered event. 

This coverage can help you cover the costs of lost income, temporary relocation expenses, and other expenses that arise during the interruption period. 

For example, let’s say that a wildfire breaks out and damages your crops and equipment, forcing you to suspend your farming operations for a few months. 

With business interruption coverage, you can receive financial compensation for the income you would have earned during that period, allowing you to cover your expenses and keep your farm running. 

Some of the costs that business interruption coverage typically covers include:

  • Lost income
  • Temporary relocation expenses
  • Mortgage, rent, and lease payments
  • Employee payroll
  • Taxes and loan payments

It’s important to note that business interruption coverage typically requires a physical loss or damage to property to trigger coverage. 

This means that events like pandemics or economic downturns may not be covered. 

In conclusion, business interruption coverage can be a valuable asset for farmers, providing financial protection when their farming operations are interrupted or suspended due to a covered event. 

By covering the costs of lost income, temporary relocation expenses, and other expenses, this coverage can help you keep your farm running smoothly, even in the face of unexpected challenges.

READ NEXT: Protecting Your Farming Investment: Who Qualifies for Farm and Ranch Insurance Coverage

Crop Insurance Coverage

Corn damaged by insects

As a farmer, I know how unpredictable the weather can be and how it can impact crop yields. 

That’s why crop insurance coverage is essential for any farmer. It protects farmers from crop losses caused by natural events such as drought, hail, flooding, insect damage, and disease. 

One type of crop insurance coverage is the Multi-Peril Crop Insurance (MPCI). 

This federally supported and regulated insurance policy covers crop losses, including lower yields caused by natural disasters. 

It’s sold and serviced by private-sector crop insurance companies and agents. 

Another type of crop insurance coverage is the Whole-Farm Revenue Protection. This policy provides coverage for all crops and livestock on the farm under one insurance policy. 

It’s designed for farms with diverse crops and livestock, and it protects against loss of revenue due to low yields, price fluctuations, or other market factors. 

Crop insurance coverage also includes Pasture, Rangeland, and Forage (PRF) insurance, which protects farmers against losses in forage production caused by drought, excess moisture, or other natural disasters. 

This type of insurance is essential for livestock farmers who rely on forage for their animals’ feed. 

In addition to these types of crop insurance coverage, farmers can also purchase additional coverage for specific crops or regions. 

For example, the Rainfall Index insurance policy provides coverage for farmers in regions where rainfall is the primary factor affecting crop yields. 

Overall, crop insurance coverage protects farmers’ livelihoods against unpredictable weather and natural disasters. 

With the right coverage, farmers can have peace of mind knowing that they are protected against unexpected losses.

Vehicle Coverage

Tractor and machinery on field

As a farmer, I know how important it is to have reliable vehicles for my daily operations. 

That’s why I always include vehicle coverage in my farm insurance policy

Vehicle coverage can protect my farm vehicles, including trucks, tractors, and trailers, against damages caused by accidents, theft, or natural disasters. 

It can also provide liability protection if I or one of my employees causes an accident while operating a farm vehicle. 

One of the main benefits of vehicle coverage is that it can help me avoid costly out-of-pocket expenses if one of my farm vehicles is damaged or stolen. 

For example, if one of my tractors is involved in an accident and needs repairs, my vehicle coverage can help cover the costs of those repairs. 

In addition to protection against damages and theft, vehicle coverage can also cover medical expenses and lost wages if someone is injured in an accident involving one of my farm vehicles. 

This can help me avoid costly lawsuits and protect my business from financial losses. 

Overall, I highly recommend including vehicle coverage in your farm insurance policy. 

It can provide valuable protection for your farm vehicles and help you avoid costly out-of-pocket expenses in the event of an accident or theft.

Worker’s Compensation Coverage

Farmers handshake

As a farmer or rancher, you know your employees’ importance to your operation. 

You rely on them to get things done, but accidents can happen in any workplace. 

That’s why it’s essential to have worker’s compensation coverage. Worker’s compensation insurance provides benefits to employees who get injured or sick from a work-related cause. 

It covers medical expenses, missed wages, and disability benefits. 

It can also reduce your liability for work-related injuries and illnesses. 

For example, if an employee falls off a ladder while picking fruit and breaks their arm, worker’s compensation insurance would cover their medical expenses and lost wages while they recover. 

Without worker’s compensation coverage, you could be held responsible for these costs out of pocket. 

It’s important to note that coverage requirements vary by state, so it’s essential to understand your state’s specific regulations.

Additionally, worker’s compensation insurance can be customized to fit your operation’s unique needs. 

In summary, worker’s compensation coverage is a crucial component of farm insurance. 

It protects your employees and your operation from the high cost of unexpected workplace injuries.

The information provided in this article about farm insurance is intended for general informational purposes only. It is not intended to provide legal, financial, or insurance advice. Every farm and insurance policy is unique, and readers should consult with their insurance agent or legal advisor to determine the specific insurance coverage that is best suited for their individual needs.

Please follow and like us: