The Farm Owner’s Guide to Insurance

As a farmer or rancher, you know your business isn’t exactly a 9-to-5 job. Because you don’t have a typical job, you can’t settle for typical insurance. When your farm is your business, a homeowners policy likely won’t provide the protection you need for your operation. You need farm insurance coverage that can protect you. 

But what kind of farm owners insurance do you need? What does farm insurance cover? Which farm insurance policy is right for you? And how do you know if the insurance for your farm is correct? We have you covered! Read on to learn what farm property and liability insurance covers so you can get the right protection for your farm or ranch. 

Farm Property

We don’t have to tell you that the equipment you rely on every day to do your job isn’t cheap or easy to replace. That means your policy should ensure that items such as your farm machinery and equipment are covered.

Insuring a farm means securing more than just coverage for a house and barn. It can also include machine sheds, outbuildings, and the equipment stored inside them. In addition, other things considered property include livestock, fertilizers and pesticides. If these are important aspects of your business, check on the coverage on your farm insurance policy.

Your farm or ranch probably requires a lot of electrical, mechanical and computer equipment. Equipment Breakdown Coverage can protect you from losses caused by electrical or mechanical breakdown. Even the GPS systems and computers you need for your operations may be covered by insurance. It’s important to talk to your insurance provider to confirm what is included with your farm insurance coverage, as many of these items are often not covered on a homeowners policy.

If you have a building on your property that generates income (like hog confinements or dairy barns), remember that you could be looking at a loss of income if one of those buildings is no longer operational. You may want to look into Farm and Ranch Operations Interruption coverage, which can help forestall loss of vital income.

Farm Liability

If you get sued, you may want coverage in place — and a liability claim can be costly and damaging to your operation. That’s why it’s smart to consider farm or ranch liability coverage, which may protect your assets in case of a lawsuit. This customizable coverage may protect you from bodily injury claims or accidental property damage claims that occur.

If you don’t think you need this coverage, consider this question: do you ever invite the public to your farm or ranch? This can be a huge risk if you don’t have the right farm liability insurance coverage. With agritourism (think corn mazes, pumpkin patches and U-pick apple orchards) becoming more popular every year, coverage is even more vital. If someone is injured on your property, you could be the one paying if you don’t have farm liability insurance that covers an agritourism operation, whether it’s year-round or a seasonal endeavor.

Vehicles

On a farm or ranch, you likely need vehicles to get the job done. But whenever there are vehicles, accidents can occur. That’s why you should make sure that your coverage includes elements such as comprehensive and collision coverage for your farm trucks and semis. Likewise, liability coverage is an important element of a vehicle insurance policy, as it can help protect you from claims against you if there is an injury or property damage caused by your personal vehicle. Have an ATV? You’ll want to make sure that’s covered, too. 

Workers’ Compensation

If an employee is hurt on your farm, are you covered? Keep in mind, who qualifies as an “employee” may include more situations than you think. Even family members or friends helping on the farm for a day could leave you — and them — exposed to risk. A workers’ compensation policy can be a valuable (and, sometimes by law, necessary) addition to your farm owners insurance. Don’t believe the common myths about this kind of insurance: a workers’ compensation policy could make all the difference if an employee is hurt in the course of employment. 

Crops 

Nothing is more unpredictable — and uncontrollable — than the weather, which means crop insurance could be crucial to your operation. Crop insurance comes in a variety of forms, and what it covers depends on what you grow, when you grow it, and what livestock you raise. It can cover things like planting and replanting, large production losses, weather-related causes of loss and more. Even if your acres are just pasture, rangeland or forage, there’s coverage for that, too.

Smarter Insurance for Agriculture

Whether your operation is a small, family-run affair or a commercial one, Farm Bureau insurance offers coverage that is customizable, comprehensive and smart. Talk to your local Farm Bureau agent about how to protect your livelihood and what matters most to you.