Why Do I Need Farm Insurance?

Farm insurance makes sense for many reasons. It protects businesses and farmers when lawsuits result from accidents on farm property or during farm-related business. Whether the claims relate to property damages or various types of personal injury situations, a farm insurance agent can explain the best way to proceed.

In addition to personal and property-related claims, insurance can cover livestock loss, crop failures, pest-related damage to crops, livestock loss due to disease, claims that result from natural disasters, fire losses, and more.

Farmers who seek financial and professional security need insurance for dozens of specific reasons, like those noted above. But they also need insurance to cover the overall risk of working in the farming industry.

Whenever there’s any kind of disaster that could cause significant financial loss for a farmer, insurance is the sole method of compensation. Insurance policies for farmers are the most financially efficient way to protect against some of the most common types of loss that farmers encounter in the course of doing business.

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What farm insurance do you need?

First, think about your insurance coverage needs. Each type of policy serves a different purpose. See the policy types below and contact Alchemy Insurance to help you. We’ll search to find you an affordable policy from one of our many trusted brands.

Equine Liability Insurance

Many farmers need equine liability insurance. For example, a standard equine liability policy can cover farmers who take part in any of a wide variety of activities like horse sales, team riding events, racing, horseback riding clinics and instruction, horse shows, roping, breeding, boarding, etc.

Any farmer who provides or performs horse-related activities of any kind needs equine liability insurance. Such policies are the smart way to cover your horse-related liabilities that are part of the legal landscape for farmers. When you have to pay legal fees to defend yourself, or are ordered by a court to pay damages in a case, equine liability insurance is the primary means of financial protection for you and your business.

Insurance for equine liability is a farmer’s best line of defense in legal situations. It is important to know that many typical farm and homeowners insurance policies specifically exclude any kind of commercial horse-related, or equine, activity. That means farmers might be left to pay legal fees and damages out of their own pockets unless they have adequate equine liability insurance coverage.

Every farm owner should assess whether the business includes any type of commercial equine activity. Even personal horses, not part of a commercial enterprise, can lead to equine-based lawsuits.

Farm Workers Compensation Insurance

Farm workers compensation insurance is a key part of any farm owner’s financial protection. In addition to worries about crop health, weather, government regulations, financing and commodity prices, there’s also a need for farm workers compensation insurance.

Any farmer who has even one employee stands the risk of being legally liable for various kinds of damages that may result from actions of employees. But legal problems that result from actions by employees are only a part of the picture for workers compensation policies.

Farm workers can become injured during their jobs. Even in states where there is no requirement for a farmer to carry workers comp insurance, a farmer is potentially liable for any injuries to employees. Every state’s laws are different but it is imperative that farmers make sure they comply with the local statutes.

The concept of workers compensation coverage is unique in the insurance industry. In most cases, when an employer has a workers compensation policy in place, the worker is essentially waiving the right to sue for damages. The farm workers compensation policy would pay damages and medical expenses for the injured worker, along with lost wages in some cases. This is usually a far better situation for both the farm owner/employer and the injured worker.

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Farm-faq

Frequently Asked Questions

What is Farm Insurance?

Typically called farm insurance or farm and ranch insurance policies, this kind of policy is completely different than a standard homeowners insurance policy. Farm policies cover much more for the simple reason that a farm is not just a residence but is essentially the farmer’s sole means of livelihood. Whether it’s crops, livestock or other farm/ranch related activities, loss of that ability to operate a farm could mean financial ruin for a farm family.

For that reason, such policies are much more involved than homeowners’ policies, tend to cover many more types of potential loss, and take longer to negotiate. The typical farm-related insurance policy actually is three things in one. It is a standard homeowners policy for the purpose of the residential building the farmer resides in.

But it is also a commercial business policy that covers the farming operation as an economic entity. Finally, such policies cover liability to and arising from employees of the farm. This part of the policy is often referred to as the farm workers compensation component. It protects a farmer from losses arising from actions of employees and from injuries to those workers. These kinds of policies are crucial for the proper financial operation of a modern farming business.

What Does a Farm Insurance Policy Cover?

Insurance policies for farmers cover much more that typical homeowners policies, as noted above. But what exactly do they cover? A short but representative list of items covered in typical farm policies include horses, losses or claims arising from the use of the horses, injury or illness that might occur to the horses, and other potential losses that come under the heading of “equine liability insurance” as noted above.

There’s also the question of farm structures like houses, barns, silos and processing structures. In addition to that, there’s the issue of fire coverage. Depending how close the farm is to a usable fire hydrant and accessible roadways, fire insurance policies can be a significant part of any insurance policy.

It is essential that an effective policy is modified to match the unique aspects of a particular farm. For instance, one farm might not need any equine liability coverage while another will. A policy for a farm close to a road or fire hydrant might be written quite differently than a fire policy for a farm in the wilderness, near no major paved roads and far away from water lines. Every farm owner should have a detailed conversation with a knowledgeable agent to make certain the policy matches their farming enterprise.

Can You Insure Livestock?

When a farm owner wants insurance to cover potential losses due to livestock accidents or accidents, a livestock policy is the way to go. Livestock like cattle can represent a large portion of any farmer’s economic livelihood, and should be protected accordingly. Depending on the specific number, type, and use of the livestock, a farm insurance agent can write a policy to address any unique aspects of a farming operation.

For example, for farms with high-value livestock, there are policies that cover each animal individually. Other ways to insure livestock include policies that cover farm structures, farm equipment and livestock all in a single “blanket” policy. In most cases, farmers choose to provide insurance coverage for livestock based on the entire herd. For example, a policy might list “450 Black Angus cattle,” as a unit of coverage.

It is important for farmers to assess the potential risk to their animals. In the vast majority of cases, disease is the primary culprit when it comes to herd decimation or widespread illness. But there are cases when livestock suffer injuries from falling into ditches, being struck by vehicles, or are preyed upon by wild animals (coyotes being the common factor in such cases).

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